Egon von Greyerz tells King World News:
“But the fiscal cliff is just a minor issue which involves around $120 billion, at best, savings in a year. The US didn’t even succeed in rearranging those little deck chairs because cost-cutting has been deferred. I’m sure that in 60 days when this is brought up again they will not cut costs significantly because no one will accept cost cuts.
The politicians won’t accept it because it means they won’t be reelected. And the people won’t accept it because they will be even worse off. Just like we’ve seen in Europe, austerity won’t happen. Therefore, the deficits will continue, and they will continue at an accelerated rate.
The performance of the US government over the last few weeks confirms that. They couldn’t even agree on increasing the debt ceiling, even though the debt ceiling is a farce because it’s already been increased 150 times in the last 100 years.
This is why in 2013 we will see continued deficits and accelerated money printing. This will happen not only in the US, but in the eurozone, Switzerland, the UK, Japan, and China. We can just look at the problems here in Europe to see what’s going to come to the rest of the developed world. ...