Egon von Greyerz tells King World News:
We know that government debt and the Fed’s balance sheet are growing exponentially, but household debt is also rising rapidly. We have just seen the highest rise in six years to $11.5 trillion. Mortgage debt is also up, and so is auto debt. So the US is continuing its spending based on debt. This very unsound and untenable trend will soon lead to the US dollar losing its value.
If we move to the emerging markets, for them to survive they will need growth in industrialized countries, which will not happen. So emerging markets will be another catastrophe not only economically but also socially.
Eric, I’ve stressed many times to get money out of the banking system and pension system. Country after country are planning to introduce bail-ins and forced savings systems. In Australia the treasurer has suggested instead the ‘Superannuation’ pension funds for financing government projects. The US has the ‘myRA’ system now and there will be more of this in coming years. ...