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

Stay Connected
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

  4. Colin - 'the farmer from NZ'

    Greg
    What an absolutely first rate interview.
    IMO Bill as always is spot on with his humble common sense approach.
    I have absolutely no doubt whatsoever that he calls it as he honestly sees it and not just to a preordained agenda.

    My call is that Grexit and the recent meeting of the OMFIF in Washington are the two big stories out there at the moment.
    I also listen up big time whenever Alasdair Macleod says anything and if you check out this link his thinking goes right along with Bill’s re the Washington meeting;
    http://www.financeandeconomics.org/gold-sdr-brics/

    Greg no one on WD has answered my question yet;
    “What % of the US population joined the soup queues at the height of the great depression?”
    Would you hazard a guess my friend?
    I have a feeling the true figure could be very revealing indeed.

    Cheers
    Col

    • paul

      Good point Col …
      Ans: 25 million out of work
      http://www.u-s-history.com/pages/h1660.html

      Today the figure is 91 million out of work!

    • Jerry

      Colin.
      My grandmother told me about 12 Million people. But that’s a rough guess, because they really had no way of obtaining accurate figures during that time, because people were so transient looking for work,

    • Bill Holter

      thanks Colin for your kind words. Unemployment reached 25% in 1933.

    • Alarmed

      The height of the Great Depression was 1932/1933 depending on what resource you are referring to. That translates into approximately 20-24% unemployment depending on the reference used.
      Welfare as we know it was unknown in those days, with Churches and other societies filled those needs. I am guessing far fewer people went to those soup kitchens than the average person today would guess, as it was considered a blight on the family if one was forced to use those facilities. I do not recall seeing photos of families in those lines, but rather men in suits with hats; many men went looking for work to provide for the families, so that may be the reason.
      My family lived in a well known NJ city as well as a NYC borough. Neither family had a lot of money. My paternal side was in dire straights as my grandmother was a widow with a child. She had a meager income, and food was scarce. They were allowed to live in a house that should have been razed, and cooked with creosote bricks-both escaping any poor health from it. The other side did better as six adults and two children living in one house, pooling their resources together. They ate a lot of day old bread and soup. A big argument came about with my mother’s father getting a box of food due to being a WWI vet. It was considered a shame on the family as if it were welfare. It was not.
      You may be confusing the issue by comparing the attitude today verses the attitude during those times.
      I do not think that the 1929-1939 Depression is a good example for us today,as Mr. Holder pointed out the depression had deflation instead of inflation. I propose A better example may be the Confederacy. They had no manufacturing to speak of, confiscation from both governments, and compounded with the results of war, absolutely no goods available. It took 100 years for the south to recover. Unfortunately, we do not learn from history, and it will be to our sorrow.
      I hope this helps with your question, as I do not know exactly where you are going with your question.

  5. kevin

    Its martial law….not marshall law:-)

  6. Michael

    It looks to me like Bill hit the ball out of the park. I think he put a lot of DENTS in Harry’s point of view. Somehow I would probably sleep better at night mostly following Bill’s way of thinking. But some paper dollars under the dog house makes a lot of sense for some insurance. But T-Bills seems like a suicidal endeavor for more than 40 days and 40 nights. I look forward every day to reading Bill’s daily rants.

    • Bill Holter

      thanks Michael, yes, I believe paper will spend for a short time until people refuse to accept it …then you will need silver.

  7. David Morris

    This USA ‘Gold’ price reminds me more and more of the old Soviet Union official exchange rate for dollars to rubels being much lower than the market rate.
    Gold is Money
    Currency is short lived manipulated notes that should convert to Gold.
    Legal tender is what Government decides we should use to ‘trade’ with.
    Do not be surprised if we have a new legal tender, possibly electronic after the reset.

    • Bill Holter

      yes.

  8. Gert

    You Can Cope With Uncertainty
    “CERTAINLY!” “Sure thing!” “Guaranteed!” You have no doubt heard such expressions many times. In our daily life, however, there is not much that we can be sure of. Life is so unpredictable that we often wonder if there is anything that we can be absolutely certain about. Doubt and uncertainty seem to be a part of life.

    Understandably, most people desire security and happiness for themselves and their family. They work very hard to acquire the things they believe will make them happy and secure—usually money and material possessions. However, an earthquake, a hurricane, an accident, or a violent crime can wipe out such possessions instantly. Serious illness, divorce, or unemployment can change lives overnight. True, such things may not actually happen to you. Yet, just knowing that something terrible can happen at any time is a disturbing and distressing feeling. But that is not all.

    Uncertainty is synonymous with doubt, and one dictionary defines “doubt” as “uncertainty of belief or opinion that often interferes with decision-making.” Furthermore, according to the book Managing Your Mind, “uncertainty about something important is a major cause of anxiety and worry.” Doubt unresolved can lead to anxiety, frustration, and anger. Yes, worrying about what might or might not happen can harm our mental and physical health.

    As a result, some people go to the other extreme. They are like the Brazilian youth who said: “Why be concerned about what is going to happen? Today is today, and tomorrow is tomorrow.” Such a fatalistic “let us eat and drink” attitude can lead only to disappointment, distress, and ultimately death. (1 Corinthians 15:32) It is far better for us to turn to the Creator, with whom, says the Bible, “there is not a variation of the turning of the shadow.” (James 1:17) If we examine God’s Word, the Bible, we will find sound counsel and guidance on how to cope with the uncertainties of life. It can also help us to understand why there is so much uncertainty.

    • Bill Holter

      …and do he best you can with what you have

  9. Gina Mancarella

    Greg, what Bill Holter talks about regarding breakdown in society and Martial Law is the exact reason we as Americans need to stand up with Hillary in 2016. People are painting a dire picture about the future, but we dont need to stand for this view and accept this outcome. Hillary has a vision for America where we restore our greatness and compassion for the people. Hillary is the champion of the people. Lets make her the personal champion of every man, woman and child so that the American dream can live, thrive and prosper for the next century.

    • Greg Hunter

      Gina,
      Personal champion? Hill is trading hundreds of millions of dollars for political favors. You gotta be getting paid to be this blind
      Greg

      • Gina Mancarella

        Greg, If I am getting paid, then surely millions and millions of supporters are also getting paid. What we are witnessing is a grass roots movement. The American people are standing up and saying “No” to the politics of personal destruction. Hillary has opened a real dialogue with the American people unlike the old tired politics of the past and we are learning that we as Americans can all share in the bounty of America. I believe that finally after years of wandering the desolation of history, that we are finally ready to hear the message of national salvation. An American can do attitude.

        • Greg Hunter

          Gina,
          Hill is a CFR member. I think you should study that group.
          greg