Risk Unprecedented in Bubble Land-Egon von Greyerz

44By Greg Hunter’s USAWatchdog.com

Financial expert Egon von Greyerz says forget about making money in today’s global economy.  The primary objective should be protection and wealth preservation, and von Greyerz goes on to explain, “It’s all about risk . . . what you are looking at now is a world where risk is unprecedented.  We have bubble land.   We have bubbles in stock markets.  We have bubbles in bond markets.  We have bubbles in assets markets, such as the art market, for example.  On top of that, we have a banking system that is bankrupt.  We have country risks that are enormous, but we also have geopolitical risks.  It looks like we are in bubble land where bubbles can expand exponentially, but you cannot break the laws of science.  At some point, bubbles will burst.  You can’t buy fire insurance after the fire.  Number one, from the point of investors, is to protect yourself.”

There are plenty of problem spots such as Greece and Ukraine, but there are no bigger financial risks to the global economy than the bond bubble.  Von Greyerz contends, “The bond markets, in my view, are the biggest bubble in history.  We are looking at a $100 trillion market of debt that will never be repaid.  Most of it is issued by government that can never repay it in today’s money.  I think this autumn is going to be quite dramatic.”

Manipulation is a given in all markets.  This is what is propping up a failing global system, and it is not going to make things better.  Massive manipulation of the markets, including the gold market, will have the opposite effect, and von Greyerz says, “Of course, they are making it worse.  Manipulation is only delaying the inevitable.  Of course, they (governments and central banks) hate, hate a high gold price because high gold price is a sign of mismanagement of the economy and destruction of the value of paper money.  That’s why they are doing everything they can to keep it down.  The physical market is strong and there is constant demand, but the paper market is thin . . . and there you see the manipulation.  There’s a $10 move up and a $10 move down because they are playing with it.  It won’t last.  At the end of the day, they are going to have a much bigger problem to solve.  At one point, the gold market will totally erupt.”

What could cause the gold market to erupt?  Look no further than the bond market says von Greyerz, “I had somebody, in the last few days, say to me we should probably write off all that debt, and forget about it and write it off, but there is another side to every balance sheet.  If you write the debt off, what about all the people lending against that debt?  What about all financial institutions that are leveraged against that debt?  You are talking about government bond market of something like $60 trillion.  The total bond market worldwide is over $100 trillion.  So, if you think about that $60 trillion just in government debt, then you look at what the investors have done with that debt.  That is collateral for leveraging 3, 4, 5, 10, 20, 40, 50 times, depending on the institution, and if the values of that debt start declining and it is guaranteed to decline . . . and we haven’t even talked about the derivatives, the combination of all that, and the leverage of the implosion will be so big the world will never cope with that.”

So, if so-called collateral of the bonds (debt) is impaired, that leaves gold as the last man standing as the anti-debt.  Von Greyerz contends, “The trigger will never be gold.  The move up in gold is the consequence of these problems.  The trigger can be anything.  It can be a little bank.  It can be Greece.  The big moves will be when people realize these bond markets are just a massive bubble and it’s money and paper that can never be repaid.  That is when the real problems are going to start. . . .Our clients are buying gold for wealth preservation purposes, not as an investment and not to speculate.  They hold gold as insurance.”

Join Greg Hunter as he goes One-on-One with Egon von Greyerz, the founder of Matterhorn Asset Management.

(There is much more in the video interview.)

After the Interview: 

Egon von Greyerz stores gold for clients in super-secret vaults, but he also sells physical gold at GoldSwitzerland.com.  Von Greyerz predicts counterfeiting gold bars will be a big problem when the gold price takes off again.  He says the counterfeits are very good, and they will burn investors who are not careful.  He thinks everyone who can afford to should hedge with gold or silver.

  1. Ugly

    Gold or silver are a good hedge for storage of uncertainty. But in a collapse I am not sure where you could cash them in? You must hold it for better days or for another currency. When people become desperate, it is food and water and shelter.

    Think of your silver coins as tangible value. For instance a silver coin may get you a bag of potatoes whereas dollars may not.

    • Tommy

      Agreed. If we have such a complete collapse as people like von Greyerz believe I don’t think that there will be any safe haven. It will be every man for himself. We will have chaos. There will be no one to protect someone else from taking your gold. The best that can happen is if you live out in the wilderness and have a group of family and friends who can grow their own food, etc. Hopefully you’ll have a farmer, a frontiersman, etc. that will provide the needed skills to survive on your own.

      • paul

        For those preparing for a move away from the coast … you should be looking for an “unoccupied cave” at least 300 miles from a big city and 600 feet above sea level (to store away some emergency food and equipment) and then seal it up … because a big asteroid hitting in the ocean will create Tsunami waves so large they will wash 400 to 600 feet up over all continental shorelines … the reason having a cave to run to is so necessary is because “swarms of smaller rocks” will likely follow the big one in (look at the face of the moon to see what could happen again) … once the bombardment ends … you may then move to lower elevations to plant food crops.

        Simply moving to some isolated inland farm 600 feet above sea level and more then 300 miles from a big city (putting it out of range of a car full of city folk fleeing with a full tank of gas) is not going to protect you from meteor showers unless you have a deep underground shelter built on your farm with adequate supplies of food (at least 2 years worth) stored therein.

        Remember to join any survival community and be “accepted” … you will need to have “survival skills” that will make you a valuable member … do you know how to bake a loaf of bread from basic flour? … can you raise chickens, pigs, lambs and slaughter them? … can you milk goats and know how to make cheese and butter from the milk?

        When in “basic survival mode” gold and silver won’t be widely used as money … precious metals will only be useful “as money” if society stays relatively intact … otherwise silver and gold will have more value as a means to preserve food (because it is antibacterial) and gold for filling teeth (because it’s inert and corrosion resistant).

        • paul

          Survival Economics 101 … Making flour (for bread)!
          Because one cup of wheat berries produces two cups of flour! You may be able to set up a wheat berries grinding business whereby you grind wheat berries for a group of survivalists … so you should own land with a stream on it so you can build a grinding mill using water power … then for grinding the survivalists wheat berries you can take payment in some freshly ground flour! … the excess flour you collect can be baked into bread (or cake if you have a honey bee hive) using a solar oven and then trade for meat and vegetables … this and more is what it will take to rebuild a functioning society!

          • allen

            I have soft red wheat berries, hard red wheat and hard white wheat berries, and best to get the grinder from ” pleasanthillgrain.com ” and use the fly wheel with bicycle.

            • paul

              Thanks for the info Allen … fly wheel with bicycle … great … I like the hard red wheat berry flour for bread.

          • Kerry

            Don’t forget medical skills. And basic mechanical skills as well as sewing skills, preserving food. Anyone know how to make soap? I do, and I can sew as well. Can you build a beehive oven? I have the plans. Can you cure meat? I have a book on it. Do you know what herbs are good for cooking and healing? I do, I have an herb encyclopedia. Collect info now and put it in binders because the Internet may not be around to do research.

            • paul

              Good thoughts!

    • JC Davis

      Ugly. I see what you mean in previous comments. A light clicked on when Egon said All paper currencies would be of no value if the dollar collapses. It will take down all other paper currencies. I thought of your comment silver would be worth zero if the dollar is not used to buy it.

      • Ugly

        That is my opinion anyway.

      • john duffy

        LOL guess what most currencies are backed with? You got it! US treasuries!

    • CrazyCanuck

      Ugly … I would suggest that black markets will spring up as a means of providing a liquidity outlet. So a person with gold wealth can hook up with a farmer who has excess cultivatable land and entice them to sell a part acre for gold — hence having access to food production and a means of possibly surviving the rough patch. Providing of course the rough patch does not devolve into a Mad Max like world.

      • brian

        That’s just it, in accepting a collapse of any kind as a forgone conclusion we are accepting a catastrophic level of risk. It would be much more rational to seek to take whatever prophylactic measures are available to us now, regardless of the cost, in order to alter the current course we are on than to try to prepare ourselves for any number of extremely unpleasant eventualities that result from relative inaction now.

      • Ugly

        Crazy. Just my opinion. If the dollar loses reserve status and no more petrodollars then the last thing on people’s minds will be precious metals. They will not trade food or land for a stupid metal.

        Now if a farmer has excess produce, sure he will accept metals over dollars in a collapse.

    • allen

      ….Stephen Leeb—–China just cut rates again. Meanwhile, Europe’s rates are zero and our rates here in the U.S. are zero. So what percentage of the world’s economy has zero interest rates? It’s a huge percentage. The other important question is: Whose currency would you rather own under conditions like this? Would you rather own the yuan, the euro or the dollar? I’ll take the yuan.


      • paul

        Allen … me too!! … that is why I prefer buying one ounce silver Panda’s (over American Eagles and Canadian Maple Leaf’s) when ever the premiums drop for these Panda coins.

      • Ugly

        Allen. Here is the problem and this is why I quit buying silver. First, 99.95% of all gold and silver is owned by governments, elitists, and mining companies. The rest of us own less than 1% mostly in the form of US Silver Eagles and old silver coins. Very few of us bought any pure silver bars.

        Now how much dross is mixed with some of these silver coins? Let me explain.

        Use the ring test. On silver coins throughout the world, they all have different ring tones. Then I gave the US Silver Morgan the ring test and it sounded best. It had the best ring of all the dollars.

        If I buy silver again, it will be Morgans, quarters, and the dimes etc.

        I started realizing this when silver dropped to under $18. The dealer was still over $4 on spot with the normal US Eagles, but the Morgans did not drop that much. So what does that tell you?

        • Silence is Golden

          The UGLY facts about Gold…..ever MINED (165,000T)
          > 50 % is in the form of Jewellery
          ~ 20% is held by CB’s, IMF and ETF’s
          ~ 16% is held by Investment Houses
          ~ 12 % is used for Industrial purposes
          The upper hand is with the retail/consumer in terms of control of physical.
          Silver is a different beast altogether and should not be used in the same sentence as Gold.

          • Winston Churchill

            That is an unverified factoid first promulgated by
            national geographic, and quoted as fact by everyone ever since.
            Truth is , we have no clue how much gold has been mined, hence all the rumors about vast stashes of
            unknown gold that persist to this day.

          • Ugly

            Good comment on gold v silver. I think precious metals are a must in everyone’s preparedness portfolio. Just not sure what the real value will be if we have a full scale dollar collapse. If we have a depression and then recovery then previous metals will be very strong.

          • allen

            sig, ugly, paul;

            i am buying enough gld, and silver to pay my taxes, ….i guess.

    • paul

      What ever fiat “reserve” currency the world comes up with this September … be it the same old US dollar or a basket of fiat currencies (SDR’s) … a silver coin will always have some “designated value” in fiat dollar terms … so you won’t necessarily have to physically barter your silver coin for 20 bags of potatoes.

    • andyb

      All gold and silver will be relatively worthless for use in commence until there is a new currency that they can be valued against. You have to wait. Perhaps as long as 6 months. Which is why everyone should have stored foodstuffs, and enough ammo to protect them. The whole country will be Baltimore in the beginning, especially when the EBT cards will be good only for one day’s worth of food. Any major city will not be the place to be.

      • JC Davis

        Andy B. Yep

      • Silence is Golden

        “All gold and silver will be relatively worthless for use in commence until there is a new currency that they can be valued against”.
        Respectfully disagree.
        Gold and Silver are money and their value, amongst other qualities, is derived from their respective tradability….not from some fiat piece of debt purporting to quantify/measure its function /useability.
        AU/AG will be the last men standing…..every man and his dog understands what they are. I refer you to history which demonstrates a high reliance on PM’s for those nations/individuals wishing to survive/ prosper when faced with Social upheaval/Economic catastrophe/State bankruptcy/WAR. Why ? The Ancient Egyptians thought it was important to have it. The Babylonians thought as much too….in fact they devised the system we know today as Fractional Reserve Banking ….based on Gold.
        Gold is the foundation of any money system…at least it should be. You seem to be thinking upside down and perhaps that comes from the misinterpretation of what is Money….regardless of the circumstances.

    • Alarmed

      We are living in unprecedented times, but financial collapses, both globally as well as “locally,” are nothing new. Barter has limited application, and during the height of economic woes, all governments, from ancient times until now, will confiscate everything and anything they can get their hands on from its citizines.
      I am not an advocate of living in rural areas based on what has happened to the Colonial farmers in Zimbabwe as well as the Africaan farmers currently in South Africa. The same thing happened (and could be still occurring) with the rural farmers in Argentina.
      With all of the US dollars that are in the hands of those who frequent the gray and black markets world wide, it is not a stretch of the imagination that US dollar could still be viewed as having purchasing value and continue to function underground. It could also mean that other paper currencies could be used in the same manner as well.
      In general, where there are two people, there are three opinions. I take the view that there is no such thing as “like minded people” to band together in unity. If it does occur, it is a rare thing indeed.

      • Alarmed

        Oops! citizens

  2. mac

    ….everyone talks the same story —on the same page…Greece will cause contagion…BS…the Banks have had 5 years to re-align their exposure to Greece..we r very stupid people to allow Banksters to rule us.

    Guess who owned all the Bonds of Italy, Spain et al when they yielded over 10 % plus plus – the Banksters you idiots!!! Made a killing, the Banksters. Greece is a distraction, a useful one for some. Wake up.

    Egon it doesn’t matter what the people think. The Central Banks throw printed money and bury the people.

  3. Silence is Golden

    EVG is in very good company when we mention the prognosis for Gold (being off with timing). He is absolute however with his remarks on Bubbles with the biggest one in Bonds being of most concern. I agree with him whole heartedly on that matter. Taking the point a little further …when does the “Collateral” become impaired ? …and therefore cause a triggering event for Derivatives ? When prices fall and yields rise. I have said over the last few weeks (and commented here) that the space to be watching very closely is in fact the TNX. Look at what it has done recently. Keep in mind that the FED, with its interest rate curve flattening policy (Monetising Debt)….has not been able to keep this beast at bay. Neither will it…. when it starts to rumble…the market will overwhelm the CB. I can envisage this early move to be smart money repositioning out of Bonds (that could also include the Russians). Here is the part that becomes obfuscated through the process…..the USGB Issuance must keep working in ever increasing volume and in fact perpetuity…to replenish the depleted COLLATERAL.

    The most obvious point I want to make about Gold is that it is more than an “Insurance Policy”. To me Gold is THE Asset with the highest Integrity. That’s the way it should be viewed…as an Asset. When the real wealth / money in the world starts to realise that the only Asset they want to hold..is Gold…then the world will know the true value of Gold.

    • Greg Hunter

      Thank you SIG for extending the post with your analysis. It’s hard to disagree and I think you might be downright prophetic here.

      • Shadow fo Doubt

        As usual I really appreciate your commentary, wide variety of guests and your followers insights and intellectual sparring. But it has caused me to question the validity of the old saying, “In the land of the blind; the one-eyed man is king.” I have come to the conclusion that anyone with a modicum of common sense, along with the ability to truthfully analyze the news, and perhaps a wee bit of foresight is treated more today as a pariah than royalty. Here’s continued encouragement and thanks for all your efforts!

    • OutLookingIn


      Not only the TNX but the entire Treasury complex, as the yield curve across 5’s, 10’s, and 30’s is dramatically steepening. Also keep a very close eye on the European sovereigns, particularly the German bunds.
      These financial markets are supposed to be the most conservative and stable of the entire global financial system, with small moves over long time periods. The recent moves have been unsettling, as can be seen in the almost full 7 basis point rise in the 10 year just since February first! This level of volatility in the bond sector is not good.

      • Silence is Golden

        For me the TNX is the quintessential indicator on so many levels from risk aversion, to stress in markets, …to critical moves in real estate/housing……plus a multitude of other signals in terms of global funds flow and anticipated economic developments.

    • allen

      sig, agreed!!

  4. southernpatriot

    “There’s a man over there telling me to be aware” like lines of this 60’s song someone is telling me what to do,and my only dilemma is, who do I trust and who do I listen to! As I write down on a piece of paper, who I trust for the decisions I’m about to make,I scratch off my government and the Yahoo’s who are running this country. I do love my country, but we have felt for a long time,that the very politicians we elected, don’t give a tinker’s dam about “We the People”. We are the John Does and the Jane Does who make this country work. If only the politicians would get out of our way and let America get back to what she does best,” getting back to business”.
    The words of my God, my family and a love for the words of the Constitution of this Republic, are where I place my thoughts, today. Still wondering if they’ll be here tomorrow and the next?
    Living day to day and trying to make things work for my family, have the highest of priorities. Living with disabilities and the lose of a job have thrown doubts on the American dream we grew up with! However, having said that, I remember growing up in a time, we were fortunate to be surround with men and women of character, most of them are gone today,that’s not only a shame, but it has left a vacuum that is not easily filled.
    While we personally don’t play the market directly, we realize that like it or not, we are connected to the stock market with our pensions and the companies who products are in our homes,on our dinner table, in our frig. and parked in our driveway’s are very important to the prosperity of the nation.
    It does not take a rocket scientist to see that something is rotten in Washington DC and many of our state capital’s. We left the country in the hands of our elected official and you can see the mess that they have brought to American shores.
    With regards to personal safety and that of our families, we will decide our future, not a run away government run by a bunch of crook and traitors. We are trying to prepare for whats to come the best we can. We will learn to survive like our forefathers did, or we will not make it. Thank you Greg for all you do for trying to make sense out of the mess we all are in. SP

    • Z'Big

      SOUTHERNPATRIOT; Meet John Doe (1941) – Tear Down the Fence!

      John Doe” (Gary Cooper) delivers his first radio address to an audience featuring author Ann (Barbara Stanwyck), editor Connell (James Gleason) and evil magnate Norton (Edward Arnold) in Frank Capra’s “Meet John Doe”, 1941.


      Better yet see the whole enchilada!


      Wake up John Doe “USAWatchdoger,” your the hope of the world and as for you Gina Macaroni, their you are the people, you, Hillary an Vicky, try and lick that!

      • southernpatriot

        I thank you for the response. Excellent movie. I would like to think if this nation could get back to it place of origin,it’s grassroots if you will.follow the Constitution and the Bill of Rights,keep our word as a Nation,keep the promises we make, balance the books without smoke and mirrors and defend our nation & it’s borders, our citizens and stand up for the rights of so many who do not have a voice, then we get back to square one,this can still be the greatest place on earth to live,work and die,in peace,Freedom and Liberty. Good day to you sire. SP

        • Winston Churchill

          That dream died with the passage of the Sedition Act in 1790.

  5. don

    I don’t buy the war threat as much as some. WW1 started when Europe was in good shape economically, and WW2 started after Europe had recovered from the depression (only the USA was still mired in a depression in 1939). Even more contained wars like Korea and Vietnam were not connected to economics.

    It seems to me, if it looks like gold/silver are about to skyrocket, world governments are going to outlaw private ownership of precious metals, as FDR did in the 30s. If they do that, selling even small stockpiles of gold/silver will be problematic at best, with the possible threat of jail time. The percentage of people who actually own precious metals, is relatively small, so it would not be too difficult to enforce. What say you, Greg?

    • Charles H.

      There is an essential dichotomy between government and it’s people. When government become so big and powerful (important) that it views it’s citizens as servants – taxpayers – facilitators to agendas and programs, combined with corruption: it is hard to say how far laws and edicts (Executive Orders) might go. No one thought the bubbles could have been sustained for so long; similarly, no one can tell how far leaders may push people into poverty, to keep themselves afloat.
      In this case: government may make criminals of us all.

  6. Mike from the North

    Even if you serve up debt and risk smothered in Swiss chocolate it will still have a bitter taste.

    This guest like many others just simply express that we must not ignore the signs that the system is drowning in debt that will never be repaid.

    Bond markets in recent days has been showing signs that things are not right.

    When they loose control and they will there will be a tsunami wave that will overwhelm the system.

    I do not look forward to the day that the realities confirm this to all that will not listen.

  7. Doug

    A great interview Greg…Egon is smart and knows what is coming. Most in the MSM claim to see the light at the end of the financial tunnel. A few, like Egon know the light is actually that of an oncoming train. Get ready and fear not! Thank u again Greg for the interview.

  8. Jerry

    Greg I had to post this for some of your readers who still labor under the delusion that the dollar cannot lose reserve currency status.

    Why would emerging markets like India and China be willing to continue to devalue their own currencies just so we can print money and expand our debt? They won’t. When the gold runs out, the party’s over and fantasy will be introduced to reality. Those that don’t think so; go ahead and jump on the dollar train with Rick Ackerman. Enjoy the ride down.
    Greg its Rob Kirby time.

    • allen

      jerry agreed!!

    • allen

      from Martin Armstrong

      Toronto police identified a body found in the water near as that of missing Morgan Stanley sales trader Murray Abbott. This is by no means the only trader suddenly being found dead. There is a dark sinister force behind the curtain and far too many people are turning up dead. The volume and liquidity collapse is underway and many people who have been in the industry for decades in banks are leaving before the curtain falls down. The other side of 2015.75 may shock a lot of people. The real crisis is the collapse in liquidity and so many in the field are getting very nervous about what is on the horizon.

      • Jerry

        Extremely interesting. I recently told my son who was ready to take on a big corporate project, to pull out. Many of the large investors I know are sitting on the sidelines waiting to mop up when the SHTF moment takes place. Its only the fools and unsuspecting, and of course the market manipulators, who are still playing. The money velocity chart bares that fact out.

    • Colin - 'the farmer from NZ'

      Yeah Jerry,

      BUT!!!!!…… I can picture it now……. Ackerman and his buddies will be peering ahead, out of the train window, reminiscent of frightened rats.
      They will be clambering for a place to position themselves and be ready to jump and run as soon as the train looses speed on the very last steep incline and only moments before the spectacular crash.


      • Jerry

        Colin 🙂 …….:) …….now that’s funny!

      • Jerry

        Here’s old 94 now, head’n down the tracks…..whoo….whoo..

        • Silence is Golden

          I think Rick and Harry are sitting in the same coach on the same train…..!!!! 😉

          • Colin - 'the farmer from NZ'

            Yeah….. I wonder how much they have been loading up on Chicago muni bonds?
            Have a great weekend Sig, Jerry, Allen,Wd, Greg, Ugly Etc.- I love your guys comments and links.
            We will see what next week brings!

            • Silence is Golden

              You too buddy. 😉

      • WD


        Remember Ackerman plays the options, puts, calls and writes. He never really owns anything. He knows the crash is coming. He just thinks that before it happens people will cling to dollar for a while. He calls it deflation, Williams calls it inflation.

        I dont agree with all he said but he did say everything most of us belive on this website. He also said that people like you were far ahead of the game, even Jim Rogers agrees with that.

        He had a great analysis, the end was the same as all the others have stated here but a slightly different means to get there.

        Remember even he sees a horrible end to this and he said so as well.

    • Jerry

      Greg this is it. Say goodbye to the petrodollar.
      Now you know why the Saudi’s snubbed President Obama. Its mind over matter. They don’t mind, because “we don’t matter”.

  9. JC Davis

    Greg. Thank you for staying on target with the economic conditions world wide. Other things are important, but what is happening now will effect the whole population. Uninflated footballs become very trivial.

  10. Tom

    unprecedented risk. Egon is correct. nations will fail, institutions will fail, cities and states will fail. it is too late for them, but as individuals we still have time to protect our own.

    a word to the wise should be sufficient.

  11. Edward Ulysses Cate

    Greg’s (and others) curse:
    “The men the American people admire most extravagantly are the greatest liars; the men (and women) they detest most violently are those who try to tell them the truth.”
    -H.L. Mencken

  12. Edward Ulysses Cate

    When Greenspan actually told the truth (1966):
    “This is the shabby secret of the welfare statists’ tirades against gold. Deficit spending is simply a scheme for the confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights. If one grasps this, one has no difficulty in understanding the statists’ antagonism toward the gold standard.”

    • OutLookingIn

      Alan (“Judas”) Greenspan.
      He sold his soul (morals) to Wall Street for 30 pieces of silver.

      • Silence is Golden

        That may be true but he is on record for speaking the TRUTH before he was corrupted….and accepted their religion.

        • OutLookingIn

          Yes. All the worse, since he KNEW better! He “swallowed” his principals along with his morals to “take” the hand of corruption and embrace it. Now in his elderly dotterage he seeking some king of forgiveness, or justification for his utterly nefarious behavior. Hubristic greed.

  13. Russ

    Thanks Greg, good interview. John Williams followed by Egon von Greyerz — must be getting close. I’ve been listening to EvG interviews for a few years now and he has been been very consistent about gold as insurance. I wish I’d heard that message back in 2002, but I didn’t wake up until QE started. Timing will always be the issue, we won’t know when it will happen until the day after and by then it will be a come-as-you-are party. His point about bonds being leveraged 3, 4, 5… 50 times over should be a wake-up call to even a neophyte if they hear the message and they are engaged and listening. Unfortunately, too many are still consumed by football deflation and not currency deflation and they wake up too late. We’ll see.
    My thoughts regarding a Debt Jubilee still stand, the holders of the debt (governments) will be saved, the organizations/pension funds/people on the other side of the leveraged market will take a major hit, some will be wiped out, it’s all gone — ugly.
    BTW, as I understand EvG recommends gold due to the volatility of silver, but with the gold/silver ratio hovering around 70, silver is a slam dunk IMO.

    • Lake Effect

      Illinois debt was just rated JUNK by Moody’s.

      Following Friday’s Illinois Supreme Court ruling that overturned the state’s 2013 pension overhaul, political, legal and economic experts are weighing in on what Springfield lawmakers and the new governor can do now to fix the state’s pension crisis, with some saying additional revenue has to be part of the solution.

      At $111 billion, Illinois has the worst public pension shortfall in the nation. The state’s failure to pay its share of pension payments in the past is largely to blame for the ballooning debt.

      The pension-cutting law — approved by the legislature and signed by former Gov. Pat Quinn in December 2013 — would have saved the state $145 billion over 30 years in part by reducing cost-of-living adjustments for retirees.

      Well, Illinois is a prime candidate for saving.

      In its unanimous ruling, the Supreme Court firmly stated that the Illinois Constitution prohibits public employee pension benefits from being reduced.

      “For anybody who’s retired or who’s already in the pension plan, this decision has said that the state has very little ability, if any, to tamper with it,” said Allen Shoenberger, a professor at Loyola University Chicago’s School of Law.

      From ProgressIllinois.com

      • Art Barnes

        Status Chicago Junk rating, another prime example of once a great American city which has been run by the liberal politics of the last 50 years -so, so sad… Maybe Chicago and Baltimore could compete as to which city of peace could rebuild itself faster if it had another trillion of so dollars of taxpayers money to spend. I would rate Chicago & Baltimore as “Super Junk” bond & and pronounce those cities as having an AAA rating for their destructive entitlement practices. Chicago & Baltimore don’t slow down to fast your destructive policies because New York, Detroit, Philadelphia and many others just may hit you in the rear as they work so hard to get their own AAA rating.

      • Anne Elliott

        This is not Illinois’ bond rating (yet). It was CHICAGO’s bond rating that Moody’s put at Junk status, not the whole State (yet).

        • Shadow of Doubt

          Just this morning on the Glenn Beck Radio Program they were interviewing an individual who will be one of the leading candidates for the highest office in the great state of Kentucky and he stated that of the 5 states already identified as economically moribund. The two states already at the bottom of this list are Illinois and Kentucky.

        • JC Davis

          Thanks Anne. I was very concerned about what the reaction would be if it was the state.

  14. paul

    Egon von Greyerz talks of bubbles and how they may soon burst creating a lot of problems for us … and when I look out into the night sky and see the hundreds of trillions of stars out there in this ever expanding universe … I wonder … that perhaps like these “man made” bubbles … God’s universe might also one day burst creating a lot of problems for us … but I live on in hope that the universe won’t burst … and I think the bankers live on in the same way … in the hope that their bubbles won’t burst …. as long they simply keep creating more and more fiat money to keep things inflated … so by this reckoning QE4 is definitely in the bag … for as the bankers say … “They are just doing God’s work”!

    • brian

      Yeah, but you neglect a very important difference…your hope that the universe remains viable to you is not knowingly and willingly fueled by the loss of other people; the bankers have acted upon a decision to position themselves so that their gain comes at a great cost to other people.

      • paul


  15. Lake Effect

    Well, Illinois is a prime candidate for saving.

    Illinois debt was just rated JUNK by Moody’s.

    Following Friday’s Illinois Supreme Court ruling that overturned the state’s 2013 pension overhaul, political, legal and economic experts are weighing in on what Springfield lawmakers and the new governor can do now to fix the state’s pension crisis, with some saying additional revenue has to be part of the solution.

    At $111 billion, Illinois has the worst public pension shortfall in the nation. The state’s failure to pay its share of pension payments in the past is largely to blame for the ballooning debt.

    The pension-cutting law — approved by the legislature and signed by former Gov. Pat Quinn in December 2013 — would have saved the state $145 billion over 30 years in part by reducing cost-of-living adjustments for retirees.

    In its unanimous ruling, the Supreme Court firmly stated that the Illinois Constitution prohibits public employee pension benefits from being reduced.

    “For anybody who’s retired or who’s already in the pension plan, this decision has said that the state has very little ability, if any, to tamper with it,” said Allen Shoenberger, a professor at Loyola University Chicago’s School of Law.

    From ProgressIllinois.com

  16. Tom Cunningham

    Hi Greg,

    Great interview with Mr. von Greyerz. Most of the informed are calling for the same thing to happen. It is just a matter of when rather than if. All of these financial bubbles are also causing a new real estate bubble (assets). When the music stops and everyone scrambles for the only chair left, it will not end well.


  17. Galaxy 500

    The high and mighty 0bama islaminstration is boycotting Russia but…

  18. mushroom

    What’s important to many folks is what will happen with their house mortgage, car payments, property taxes, food prices, pensions, social security, medicare, medicaid &c…when the bottom falls out. What will the reset mean in practical terms.

    No one ventures opinions about this

    • JC Davis

      Mushroom if the dollar is not devalued by the government all debts will be paid off in short time. Other countries will get creative on ways to move dollars out of there countries, and back into America. So many dollars to buy so few goods equals high inflation. People who own land should not sell. Keep your trees, the world will need the wood to rebuild. I can see a time when a little man from say China will offer 20 million dollars for 20 acres of wooded oak.

    • Art Barnes

      Mushroom, that’s because no one knows what will happen in an uncontrolled crash. A controlled crash, if that is in the works, is another story, you can bet that the “think tankers” in Washington have in down in writing, but its is just not public. Uncontrolled is millions die by our patriotic heroes the militarized police forces of America before the sheep go back into their homes and accept martial law. Controlled is almost any concept & event you can think of as the country becomes a third world totalitarian country/government. Your question is a fair one to be sure, its just that the answers are only known by the elite few at this point in time. As time goes on, it will become clear. I personally believe all the people on this Post are already on some type of agitators list & will be silenced at the first point of any crash.

    • Mike Gunther

      I think it depends how things go. In a slow motion crash where institutions are kept going for a period of time, meaning Sheriff’s and Police, Courts keep working at some level people maybe be in trouble who can’t pay their bills, (you will get thrown out for not paying your mortgage for example). If its a fast down and dirty crash, mortgages maybe the last thing people worry about. It maybe prudent to have tangibles to barter with such as food, a box of 9mm Ammo, a silver coin. They may may go a long way in paying the doctor, or getting items you need, etc.. Flexibility and versatility it your preps will go a long way.

    • Paul from Indiana

      Mushroom, Prepare for the worst and hope for the best. Some preparation is better than none. Look at it this way: Even if things continue just as they are, where do we end up? The outcome is not good even with no changes. Due to incalculable debt on an unheard of scale, Humanity teeters on a precipice heretofore unimagined. We are in uncharted territory. Best always to you and yours. PM

    • susan

      Of course we do. Preparing for the “event” by having food, water, medical supplies, etc. is what we are all doing for when this happens.

    • diane s.

      Good question mushroom

  19. erik

    I seem to recall hearing a report that the US/Fed is about to block US buyers from trading in Canadian bonds. This maybe one of the early indicator of bond market failure.

    When any market goes no bid all banks holding same bonds in their reserve accounts must value it at zero. In the world of fractional banking this quickly becomes a bank survival issue.

    If we are to believe the various Finance Ministers there is to be no “bail-out” but a “bail-in”. Just how the “bail -in ” would take place has not been fully specified but if you take your lead from the messaging by the Chief Economist at the Bank of England it will be done by pension funds taking up enough worthless paper to clear the margin problem, only there will never be enough buying capacity even then.

  20. James

    Hello Greg;
    My sympathies for all the stackers who saw QE and rightly determined this will not end well. I say ‘sympathy’ because we all had little idea how determined the PTB are to continue the dance macabre until the final bitter end. I respect EVG because he is not a blowhard a LA Jim R. and others…. As much as i detest the time involved, i continue to follow the blow by blow as the bonfires of vanity burns down to the bitter ashes. My concerns are : 1. Do i have enuf food? 2. Will PM’s be useful for barter? 3. Can i defend the homestead? 4. How long before the phoenix arises? Also in the back of my mind is the ever present ” How do we ensure the bastards won’t capture the next system?” …..and “How can we take back the fraudulent profits of those who created this mess?”. I’m a retiree. I left Toronto 6 years ago, to spend my final years in the relative sanity of country living on the coast of Nova Scotia. I have been blessed .
    I believe there is a final act of this crisis of greed that will be the signal the end is near…and that is the repudiation of CASH. Once the gov forces us all to use digital money only, we will be truly the slaves of the PTB.
    Over my dead body.
    I would appreciate a discussion on your forum on the signs of this happening.

    • Colin - 'the farmer from NZ'

      I hear you loud and clear James.
      TPTB have a nice little test case going on right now in Denmark!
      See link:

      Word is that many of the local sheeple think it is a smashing idea that demonstrates their forward thinking society and their willingness to fully embrace new
      technologies………this may turn out to be more akin to embracing a land mine.


      • Colin - 'the farmer from NZ'

        Thanks Diane
        Yes….Mr Brown….another Neocon lunatic!

    • Ugly

      James. The signs are already here for cashless society. In past 40 years we went from cash to checks. Then we went from cash and checks to credit cards. And now hardly any cash but mostly credit, debit, and EBT cards.

      Who would have thought that EBT cards would be a very large part of the US economy?

      Next? My opinion is that a cashless society is coming, but it will be after the worldwide mayhem following the dollar collapse. After the mayhem and dollar gone will come the cashless world wide system. It will be awhile, but the dollar collapse isn’t too far away.

  21. Klemens

    Gerg, we will get a big punishment of God.
    WWI. and WWII. together will look like a Kindergarten Game if you compare what will going on in the next 3-18 month. At the End gold and silver will not save you. I do have got gold and silver coins and I do hate the debt-ponzi-money and everybody should change his dept-ponzi-money into Gold and Silver. The big question is will you survive to use this coins? I do think the change of survivel is only 1:9, not more. So one will survive, 9 will be dead.

    For the 9 who will get dead:
    If you know that, you have to think about your life. There will be a hell and a heaven.
    Just think about that. Please read the book: “The Four Last Things” of Martin von Cochem.
    So what you have to do, to survive:
    1. belive in Jesus Christ and pray a lot – the very most important thing to do!
    2. you do need this in your house, (all) blessed: water, candels, crucifix, rosary,
    you can order this via the internet and then you can let it bless in a catholic church, it is no problem, you do not need to be catholic, every priest will bless it.
    Why blessed? That is the only way to get protection against Satan. You have to think about this fact, please google!
    3. food, water, clothes, other survival items, etc.
    I do belive you don`t need a hole truck load of food, because the punishment will be very hard, but not so long. 90% are dead, so the other 10% will find allways something.
    4. Silver and Gold Coins, but I think it is not so important to have a lot.
    Knowledge of agriculture, etc. is much more important
    5. There will be a time after God’s punishment, where you need a “Roman Catholic Daily Missal 1962” or older.
    It is a long story to explain why, but you can belive me, that it will be the truth.
    Even most of the catholics do not have this book. Also, you do not need to be catholic to buy this Missal.
    And than it`s good to have one. Now it`s not a big job to get one of the old Missal.
    Do not buy the new Missal (after 1962) it will not work!

    • 8Ball

      Some of you may enjoy this old book.


    • Kerry

      yes, along the lines of the 3 days of darkness-hard punishment but short
      the blessed candles should be natural, made of beeswax
      and don’t forget non GMO seeds-the hybrid ones don’t germinate
      I hope the bees make it through the coming firestorm

  22. Art Barnes

    Greg, each day brings more debt, violence, & potential war as well as more “junk” bonds that cannot ever be paid. As in the days of Noah… This is truly not my father’s country anylonger, I’m glad now he didn’t live to see, that gentle man would be hurt as to what this nation has become. I toast one to dad, miss you every day!

  23. Al

    Greg: another great interview! Great to get a view from Europe and how he sees the USA. I agree with what he is saying.
    Remember, Lindsey Williams was told- the collapse will start in the derivatives markets, caused by some type of interest rate change. Bonds are shaky as is Greece. We are on a knives edge- this whole thing can implode anytime and bankster decide to pull the plug out!
    Please get someone to speak on jade helm coming- maybe Dr. P.Roberts or Dave Hodges from Common sense radio show!.

  24. Coalburner

    Greg: Gold and silver may be spendable or tradeable when a reset occurs or what ever struggle eventually rights the money ship of the world. But that is not what matters. If we as families or individuals suvive, the real value of these valuable items is too prevent the total backslide of everything a family has worled for, for generations. Many of us stood on the shoulders of two or three generations to get educated or develope high valued sjkills that we may have only thought were about making a good living. But the forces and changes of the world had a different plan. This was really the peak of a great nation and we were the lucky ones. What you and folks like you have done over the last 15 years have awakened those who were willing to wake and see the true alignment of history and at least some of its repetitions. The great part of that is that many of us may never have known what would destroy the generations of work. Instead they may attempt to defend themselves from the wealth raders educate theri children and grandchi;dren so they may have better than a third or fourth world existence. This is going to take another 15 or twenty years to completely shake out and we should remind that every chance we get.

  25. Andy Sloan

    Prophesy of Our Lady of La Salette (Approved by the Holy Roman Catholic Church)

    “The earth will be struck by calamities of all kinds (in addition to plague and famine which will be wide-spread). There will be a series of wars until the last war, which will then be fought by the ten Kings of the Antichrist, all of whom will have one and the same plan and will be the only rulers of the world. Before this comes to pass, there will be a kind of false peace in the world. People will think of nothing but amusement. The wicked will give themselves over to all kinds of sin. But the children of the holy Church, the children of my faith, my true followers, they will grow in their love for God and in all the virtues most precious to me. Blessed are the souls humbly guided by the Holy Spirit! I shall fight at their side until they reach a fullness of years.

    “Nature is asking for vengeance because of man, and she trembles with dread at what must happen to the earth stained with crime. Tremble, earth, and you who proclaim yourselves as serving Jesus Christ and who, on the inside, only adore yourselves, tremble, for God will hand you over to His enemy, because the holy places are in a state of corruption. Many convents are no longer houses of God, but the grazing-grounds of Asmodeas and his like. It will be during this time that the Antichrist will be born of a Hebrew nun, a false virgin who will communicate with the old serpent, the master of impurity, his father will be a Bishop. At birth, he will spew out blasphemy; he will have teeth, in a word; he will be the devil incarnate. He will scream horribly, he will perform wonders; he will feed on nothing but impurity. He will have brothers who, although not devils incarnate like him, will be children of evil. At the age of twelve, they will draw attention upon themselves by the gallant victories they will have won; soon they will each lead armies, aided by the legions of hell.

    “The seasons will be altered, the earth will produce nothing but bad fruit, the stars will lose their regular motion, and the moon will only reflect a faint reddish glow. Water and fire will give the earth’s globe convulsions and terrible earthquakes which will swallow up mountains, cities, etc…

    “Rome will lose the faith and become the seat of the Antichrist.

    “The demons of the air together with the Antichrist will perform great wonders on earth and in the atmosphere, and men will become more and more perverted. God will take care of His faithful servants and men of good will. The Gospel will be preached everywhere, and all peoples of all nations will get to know the truth.

    “I make an urgent appeal to the earth. I call on the true disciples of the living God who reigns in Heaven; I call on the true followers of Christ made man, the only true Saviour of men; I call on my children, the true faithful, those who have given themselves to me so that I may lead them to my divine Son, those whom I carry in my arms, so to speak, those who have lived on my spirit. Finally, I call on the Apostles of the Last Days, the faithful disciples of Jesus Christ who have lived in scorn for the world and for themselves, in poverty and in humility, in scorn and in silence, in prayer and in mortification, in chastity and in union with God, in suffering and unknown to the world. It is time they came out and filled the world with light. Go and reveal yourselves to be my cherished children. I am at your side and within you, provided that your faith is the light which shines upon you in these unhappy days. May your zeal make you famished for the glory and the honour of Jesus Christ. Fight, children of light, you, the few who can see. For now is the time of all times, the end of all ends.

    “The Church will be in eclipse, the world will be in dismay. But now Enoch and Eli will come, filled with the Spirit of God. They will preach with the might of God, and men of good will will believe in God, and many souls will be comforted. They will make great steps forward through the virtue of the Holy Spirit and will condemn the devilish lapses of the Antichrist. Woe to the inhabitants of the earth! There will be bloody wars and famines, plagues and infectious diseases. It will rain with a fearful hail of animals. There will be thunderstorms which will shake cities, earthquakes which will swallow up countries. Voices will be heard in the air. Men will beat their heads against walls, call for their death, and on another side death will be their torment. Blood will flow on all sides. Who will be the victor if God does not shorten the length of the test? All the blood, the tears and prayers of the righteous, God will relent. Enoch and Eli will be put to death. Pagan Rome will disappear. The fire of Heaven will fall and consume three cities. All the universe will be struck with terror and many will let themselves be lead astray because they have not worshipped the true Christ who lives among them. It is time; the sun is darkening; only faith will survive.

    “Now is the time; the abyss is opening. Here is the King of Kings of darkness; here is the Beast with his subjects, calling himself the Saviour of the world. He will rise proudly into the air to go to Heaven. He will be smothered by the breath of the Archangel Saint Michael. He will fall, and the earth, which will have been in a continuous series of evolutions for three days, will open up its fiery bowels; and he will have plunged for all eternity with all his followers into the everlasting chasms of hell. And then water and fire will purge the earth and consume all the works of men’s pride and all will be renewed. God will be served and glorified.”

    Full prophecy;


    God bless all!

    • Kerry

      One of my favorite prophecies, along with Our Lady of Fatima
      It must have been mind-blowing to see the “dance of the sun”

  26. NC Gal

    Greg, I enjoyed this interview and came away with a much clearer understanding about WHY the “bond bubble” is so problematic, something that had eluded me before.

    At the beginning of the interview, you said that, during the pre-interview, EVG had told you he expected things to go badly this fall (or words to that effect). During the interview, you asked him twice about this and he twice agreed and acknowledged that that was his feeling, but did not say anything about what that feeling was based upon. Is there anything you can share here regarding what led him to that conclusion?

    • Greg Hunter

      NC Gal,
      A light went off in my head too, and I have been doing this for awhile. It’s all about the collateral(bonds).

      • wd


        What is a collateral bond? Sorry for my ignorance on this.

        Thank you

        • Greg Hunter

          I meant to point out the bonds are used as collateral. If I used the term “collateral bond” it was a mistake. Sorry, I’m the dummy here.

          • wd

            I see, like the bonds ( IOUs the have put in the Social Security Trust Account in place of hard assets?)


  27. Jerry

    Greg, I hate to rube it in……but
    Please have Rick Ackerman back on.

    • Alabama Jim


      I have read your post for a while, and your contacts and TPTB etc etc, I have also followed people like Willie, Stockman, Ackerman, PCR, Armstrong, Holt and Fitts.

      Ackerman is an options guy, that’s what he plays and I can tell you from experience he is a chess master. He is vocal about the fraud and corruption in the system. He is also convinced that when collapse happens it will be beyond hell. SO you all both agree to that.

      Even Mannarino is an options guy, option players dont care about the “whys” and “becauses” they follow the momentum of the security they are watching. This is how real money is made. He was extremely clear about hoe the new wealth will be the farmer. He also did not go beyond the crash, and whats AFTER that point he said inflation could happen. By the way even Stockman agrees with 95% of what Ackerman said.

      I realize you have “sources” and “connections” but the UFOS are coming back to your house , driven by Elvis, and they are going to get the Loch Ness monsters to deliver you all the aluminum foil you need for a new foil house and suits.

      Jerry all you really do is re-post from the internet. I respect Ackeman’s predictions ( which are the same for the majority on this site) more than I can your weeds of info harvested on the world wide web. His expertise dwarfs yours by the millions….

      Remember to put two layers of the foil in your attic….

      • Ugly

        How come you made fun of Nessie?

  28. dee garmon

    The end game is in the offing and you don’t need to hold a doctor of philosophy degree in
    economics to see it coming.

  29. VShook

    Ever since Al Gore was the deciding vote on “Free” trade legislation, sending good middle class jobs overseas during the last Clinton administration, the American consumer in general has been pressured in a downward liquidity spiral. As more trade pacts are signed, this process continues. Thus, no real recovery in the general economy is now possible. Money velocity will continue to decline (=recession). Money supply will continue to rise (=inflation) — and the one thing that could save us all (a restoration of liquidity (good jobs) to the American consumer = economic rebound) has literally been “traded” away. It has been, and will be, a long slow process — like cooking a frog by slowly turning up the heat so it doesn’t notice. IMO, the extremes everyone talks about will not happen (they rarely do in life). Instead, we will have this slow turning where the money/political manipulators that have made so much money on the stock, real estate and bond bubbles’ way up, quietly reverse their positions so as to make even more on their long, slow way down. It has always been so.

    • diane s.

      I like your comment….thanks for posting

  30. Paul Shawker

    greg and his so called experts are nothing short of charlatans seeking publicity

    • Greg Hunter

      Please enlighten us all with the truth. What do you think is going on and please post your credentials.

      • frederick

        Shawker is a disinfo troll We love and trust you 100% sir.
        Frederick M.

        • Greg Hunter

          Thank you Fredrick!

      • Ugly

        The Paul’s of this world think that negative interest is a sign of prosperity. This past month my bank charged me $3.00 for each certain transaction amounting to $240 total. I earned 0.18 cents interest for the month on this checking account. Basically we have negative interest here in the USA. To Paul, that is probably a sign of a good economy.

  31. JC Davis

    Has anyone priced refrigerators, or car parts ? Greg I get the feeling we are in a inflationary time already.

  32. Greg from Canada

    Hi to all!you guys scaring me sounds like we are going back to Stone Age .Im not the expert but I see the bubble in bonds.its like a ponzi bond scheme goverment sells new bonds to pay for the old ones.If that crash happens I hope we in Canada won’t be hit so hard.My biggest concern is my pension plan I have quite amount.Back in early 2000 I find out a loophole in the system .I was able to day trading my pension every day without being penalized.All I had to do transfer money before 4pm and watch Asian markets my cut off time was 10 pm to cancel transfer so transfering money into Asian fund and if Hanseng was up I stayed.in my first year my return was 104% system wasn’t prepare for such a return was showing only 4%.i was able to do that for only few years then my employer switch to different company and was over.but I made my money.Now where should I park my pension ?Right now I have 75% in real estate.I thing properties will have they value regardless what will happen to bond market us buck.Any one could please give me some advice ?

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