One-on-One with Karl Denninger

By Greg Hunter’s 

Forget about the outcome of the Greek elections.  The only thing that matters, according to Karl Denninger of, is math.   Denninger thinks, “The powers that be are lying about the solvency of institutions and this is doomed to fail.”

He still thinks the financial crisis “detonates before the election,” and “layoff numbers start going back up.”  If the U.S. isn’t careful, we could be looking at a sudden 50% to 75% cut in the federal budget.  Greg Hunter goes one on one with Karl Denninger.

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  1. Ken

    Fabulous interview, Greg. It remains frustrating that “ordinary” people would rather argue baseball averages than to care about our economic problems despite all the in-your-face news about economic problems. Hopefully, ordinary people soon will begin to hear and heed your message. Thanks.

    • Greg

      Thank you Ken and Jay for the comments.

  2. jay

    Well explained. Legalized thievery sum,s it up. We have all believed the truth will set you free. If the fed were to be audited. the truth would cause a massive collapse world wide. When lieing, and stealing is legalized no one wants to see the truth.

  3. art barnes

    Mr. Denninger is a knowledgeable, intelligent, plain spoken, realistic professional who is not afraid to admit the coming crisis; thank you for having gotten the interview. My bet is that the FED will do the only thing it knows how to do well, print. Accordingly then, if I am right about our Government taking “option 2” for a solution, Mr. Denninger’s stated outcome of option 2 will be a hyper-inflationary event. If Mr. Denninger’s prediction with regards to timing is correct expect war with Iran soon. When the U.S. markets finally quit saying the problem is all in Europe and look around here at their own balance sheets, unemployment and inflation will commence rising quickly, and “wag the dog is on the way”; and Romney will be off center stage as no once wants to change horses in the middle of the stream. Hold on America your in for a wile ride.

  4. AndyB

    The dirty little secret is that in the Eurozone, not only are all the major banks insolvent, but also at least 2/3 of the sovereigns; an extremely tenuous situation just waiting for the nuclear derivative bomb to go off. The delusional (psychotically corrupt?) politicians should be very afraid of the liquidity of their bankster-supplied off shore accounts.

  5. Navy91

    Does anyone really think TPTB are going to do anything to fix this mess before everything goes to hell in a handbasket? I don’t see either side of the aisle making any serious attempt to try to fix these problems. Since this whole mess began five years ago, none of them have been serious about trying to fix it. Maaannnn, we are soooo screwed!

    On September 11, 2001 I found out how my grandfather felt the day the Japanese bombed Pearl Harbor. I’m seriously starting to think that I’m going to live to see what it was like going through the great depression, or worse, the Weimar hyperinflation.

    If you haven’t been preparing already, you better get started! Seriously people, I can’t see how this possibly ends well for anyone! Please, make preparations now, while you still can.

  6. Mitch Bupp

    Central Bank math

    2+2 + paper = 6

    Another great post Greg, The world economy is circling the bowl. Math is always hard for politicians to lie about.

    Italian debt= 2.4 Trillion … a hole “too big to fill”

    • Greg

      Thank you Mitch, Phil and Stan for the comments.

  7. Phil

    Awesome interview Greg, thanks so much.

  8. This Guy

    I also follow KD’s blog as well as, both GREAT sites, very informative w/out the hyperbole of some other websites, not that I don’t check some of those sites as well (a little hype can be quite entertaining). Good info is good info, and it’s important to take all of it in with a critical and discerning eye.

    There was a question you asked, Greg, in the interview that I’m not sure was answered. I know that KD is not that up on gold and silver being ultimate safe havens in the event of a financial meltdown, unlike Max Keiser, you (if I remember correctly), and others (myself included). The question you aksed was where did KD put his wealth/assets in order to protect them from the coming onslaught. He mentioned land, livestock, etc…but it seemed to be in tandem with another answer he was giving during the interview.

    What are your thoughts? Do you know how KD protects his assets? Any practical advce on that front from you as well would be appreciated.

    Once more, GREAT site, plz keep up the invaluable work!
    All the best…

    • Greg

      This Guy,
      Many folks on this site say you must have part of your portfolio in physical PMs. I agree. Thank you for the comment and question.

  9. George Too

    Great interview! Promises made that government cannot keep? What’s new? …I’ll tell you what’s new…you remember the can the politicians keep trying to kick down the road? It going over the cliff and down into the abyss. Thanks for having Karl on.
    In addition, something else that is new. By imperial decree, Pres. Obama just added illegal aliens 16-30 to the employment market. This is one of the hardest hit demographics. Wonder if they are going to give him another 4 years? I am doing my part to see he is retired

  10. mike gunther

    Watching Fox Business Channel, Greg you and Mr Denninger must be mistaken. Now is the time to buy into Europe!! All Is well!…NOT! How much time do you think will this buy the Markets until the Spain/Italy mess goes hyper-critical? I cant believe Italy will borrow money they dont have a chance of paying back at 7+% interest and then “loan” it to Spain for 3% that they will never pay back??? Keep up the great work Greg, the public needs somebody out there telling the truth and your doing it,

    • Greg

      Thank you Mike for the comment and sarcasm. Love it!

  11. archivesDave

    Thx Greg…
    Excellent interview!
    Still have to assume there’s gonna be a ‘Black Swan’ “flyin’ in
    to take a big dump” when least expected.
    Don’t exactly know or understand just how it’ll occur but when things
    get REALLY disastrous, I think they’re gonna come up with some type
    of 50%(or more)’digital haircut’ to many global fiat currencies.
    Of course it wouldn’t be a long range solution but it could certainly
    mitigate the situation for a spell.
    IF this were to occur, would it deflate or inflate real estate, gold and commodities? How about securities?
    It seems it would deflate the commodities market at least.
    Feel free to share this with Karl for his response if u’d like.

  12. nm

    I must say, Andy B’s comments are very insightful. I hope you keep commenting Andy. I’m learning a lot from reading your viewpoints.

  13. Davis

    The announcement coming out of the G20 meeting in Mexico That the EU countries are now going to pony up another €600 billion ($750 billion) to further bail out Spain and Italy clearly shows that the inmates are in charge of the asylum. Just a month ago we were told that Spain did not need a bail out but now they are to be given €100 billion to re-capitalize their banks.

    So just where is this €600 billion going to come from? According to the press release the largest part is to com from the ESM (European Stability Mechanism), problem is that the German Bundestag has not yet authorized Germany’s participation in the ESM. The primary reason it has not done so is that the German voting public has repeatedly (in local elections) that they have had enough of bailing out the profligate PIIGS.

    If the structure of the so-called agreement is anything like the €100 billion bailout of Spain it will obligate the already bankrupt to loan to bankrupt at rate below that which they will in turn have to borrow the funds.

    Lets be honest here the only winners here (and that only short term, very short term) will be the banks facilitating the loans. So what is the financial reality behind this latest of stopgap measures? Quite simply it’s the CDS derivatives (Credit Default Swaps) that would come due if the Spanish and Italian banks went belly up (never mind Greece, Ireland and Portugal). Safe to say there isn’t enough money in the world to cover the loss. What is known is that large U.S. banks have underwritten these policies and would be bankrupted quite literally overnight if they were called to pay up.

    Never mind the danger presented by Greece leaving the Euro zone, once the German voters and taxpayers are presented with this €600 billion bill they may well say enough is enough and leave the Euro themselves. What the Germans behave like nationalist? Yeah right, like that has never happened before.

    Rest assured the politicians and bankers are scared to death of the Frankenstein’s monster that they have created. Rest assured as well that none of them will have the courage to address the issue in public. The FED and the ECB are going to have to put the printing presses into over drive whether they want to or not. They were of course were hoping to put any such action off until after the U.S. elections, but reality is moving too fast for them to keep playing the propaganda game for that long.

    Hope for the best but prepare for the worst, things are going to get ugly long before November 6th.

  14. Michael

    Western civilization economic implosion is imminent. That is reinforced by the fact that the DHS secured conracts to provide them with 450 million rounds of 40 smith & wesson and 175 million rounds of 223 ammunition. Economics always drives the politics. And the politicians are setting up to survive. WASS = We Are So Screwed!

  15. T

    Great interview. Karl is great. This is very educational.

    Gregg, how are YOU…er…. “a savvy investor”…. invested for this crisis?

    • Greg

      I do not give specific investment advice. I have said repeatedly that people should do their homework, and that everybody should have a portion of their money in a core long term investment in some silver and gold coins. Thank you for your support.

  16. victorkiriakus


    I recently discovered your website and it is awesome!! I am concerned about the situation in Europe. Will any countries leave the Euro? How will this affect the settlement of debts? Are companies in Europe still investable? For instance, I have stock in 2 French companies (SNY & Total). If they leave the Euro, how will they convert Euros to Francs to pay dividends?

    I recently started working for one of the largest financial companies in the world and they are blindly following the same standard asset allocation for their investment products that they have followed for years. For example, they are still allocating a substantial % to financials and Europe while giving almost no gold exposure. Do they have their heads in the sand?

    Could you invite a panel of experts to discuss the future of Europe? I think Paul Craig Roberts and Joseph Stiglitz would be good on this subject. Thanks for your excellent reporting!

    • Greg

      Good ideas. Thank you.

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