Greece Debt Crisis Cannot Be Contained-Bill Holter

Bill Holter Warns About Gold and a Big US Dollar Reset Coming Sooner Than Later! By Greg Hunter’s USAWatchdog.com 

Financial writer Bill Holter says you can forget what the experts says about “containing” the Greek debt crisis.  Holter contends, “Contained is famous last words.  This cannot be “contained.”  Greece is the canary for the entire world.  The western world is Greece.  The western world is massively in debt.  There are derivative losses all over that place that are being hidden, and Greece is what sets off the realization that there are losses and the chain has broken.”

Holter goes on to say, “You have to understand that there are layers to this.  The German banks, the French banks, the Greek banks and many of the various European countries’ banks hold Greek debt.  They also hold Spanish debt, Italian, debt, Portuguese debt and etcetera. . . . It’s carried on the books of these banks at 100 cents on the dollar. . . . The problem arises if Greece defaults and truth comes out that, oh my gosh, the debt is only worth 50 cents on the dollar or 50% or 10%.  Then these banks have to write down the loss, and that blows a hole in their balance sheet. . . .Greece is broke, and they are going to down sooner or later.  Greece is insolvent and broke and when their bonds get valued in portfolios . . . those loses are going to have to be realized.  That’s what this has all been about and not realizing the losses.”

As far as the value of the dollar, well, it all comes down to trust.  Holter says, “The U.S. is no longer trusted.  Can you imagine . . . the AIIB (Asian Infrastructure Investment Bank) being formed and Israel, France, Germany, and the biggest one is Britain, and them joining in 2008?  No way. . . . It’s self-preservation, but I also believe that our allies are choosing sides.”

Holter warns there is a big reset for the U.S. dollar coming sooner than later.  Holter says, “You have to ask yourself, what is the dollar going to be reset against?   My thought is the Chinese have every reason to argue to reset gold higher because they have gold. . . . Any country that had gold, their gold would be revalued higher.  If they hold gold in reserve means their reserves would be revalued higher.  If everybody else is showing their gold, it would force the U.S. to show its gold.  Mathematically, I don’t see any way the U.S. does have the gold. . . . I do know that, at some point, there will be a massive short squeeze in gold once the derivatives chain breaks.  Once Greece defaults, or some bank defaults and the derivatives chain breaks, there is going to be a massive outburst of I want my gold, and I want it now.  This will be the biggest short squeeze in the history of history.” 

On what Harry Dent said about gold recently, Holter says, “The danger is that he’s scaring people into selling their insurance.  He’s scaring people into selling gold, and that is your insurance and gold is money.  I think Dent is right, that we will have a $100 trillion plus of wealth evaporate.  Walmart and Target will not even be open.  Try going to Walmart with your dollars, there won’t be anything on the shelves.”

Holter predicts, “We will be in marshal law by this time next year,” and adds, “There is something wrong and there is a storm out there, and the historical safe haven for all-time has been gold.  The hope is to reset the system without crashing it, but I am not sure it can be done.  There is just too much debt outstanding.  I think everything will be reset, and China will lead the reset.”

Join Greg Hunter as he goes One-on-One with precious metals expert Bill Holter of MilesFranklin.com.

(There is much more in the in-depth interview.)


After the Interview:
Bill Holter is a prolific writer and posts fresh articles almost every weekday at MilesFranklin.com

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Comments
  1. John

    Holter’s statement that this country will be under martial law a year from now is no comfort but would seem about right in terms of the next election. It seems other countries with greater economic problems would be under martial law first. But I’m beginning to wonder if the efforts of this administration to generate class and racial tensions and violence is part of the plan to hasten the “need” for martial law. I wonder if Hillary is a distraction to keep us thinking there’s going to be an election in 2016 when there is no intention of allowing an election. This over the top crap in Baltimore just seems so bizarre. With that happening in about a dozen major cities at the same time we could very well see a major lockdown in this country.

    • Bill Holter

      I hope I am wrong.

  2. Ugly

    Greece is a pimple on a pimple on a pimple compared to USA.

    Let’s look at USA. China and other foreign investors have about $7T in USA backed T-bills. It is the famous loan to value equation (LTV)

    LTV = loan amount/value of collateral

    So if our loan investors decide to cash in, we are very roasted because bonds and tbills are way over valued. Therefore we cannot let them cash in.

    What we do is nice deals like imports. We let them buy farms and Manhatten and etc.

    But they still own $7 plus trillion of TBills. Well, as I have said before, $7T can almost buy all farm ground in the USA. Or 1.2 billion acres at $6,000 an acre. Idaho has around 4 million acre so at $6,000 a value of around 24 billion.

    Anyway. Financial times are coming. That is why I am not sure Americans will do well with gold here in America. How will you cash it in on the USD with the biggest debt around it? You will have to wait until the dollar is gone and the reset currency is in.

    That is just my paranoid opinion.

    • Bill Holter

      it takes only a small amount of force to topple someone on a tightrope.

  3. Rob

    Hi Greg!

    Great interview as always! I have a question I would like to pose to you or any of your readers in relationship to the world reset Bill mentioned near the end of the interview.

    If the currencies of the world are going to reset where does that put the Iraqi dinar and the Vietnamese dong in relationship to the other currencies since they are so undervalued compared to the US dollar?

    I am sure the dollar will drop say 30 to 50% but if these two currencies reset to anywhere from 10% to parity of the dollar won’t that be a large net gain?

    I have read some of sales pitches for owning these currencies before the big reset but what say you all? :o)

    In CHRIST! Rob

    • Jerry

      Rob.
      That’s a tough one to answer because the deck is going to be completely reshuffled. My guess is that each countries currencies in the new order of things will be determined by the amount of hard assets (IE Gold) to back them. That’s why the Chinese have been buying such massive amounts of Gold. That’s my take.

    • Bill Holter

      true crapshoots in my opinion.

    • paul

      I don’t want to hold the fiat US dollar … and you want to play with fiat currencies depreciating between 10 and 20 percent per year? Each to his own … but remember buy low and sell high … the way the guys on e-bay are doing it! https://www.youtube.com/watch?v=mxtRnGndU2Q