With continued uncertainty around the globe, today the man who has become legendary for his predictions on QE, historic moves in currencies, spoke with King World News about London’s terrifying $64 trillion rabbit hole in a world headed for total collapse.

What if I should fall right through the center of the earth…oh, and come out the other side,
where people walk upside down.
” — Alice in Wonderland

No One Will Escape
Egon von Greyerz:  “As we approach the beginning of the greatest wealth destruction in history, it is an absolute certainty that no one will escape the suffering that will be brought upon the world…

The ones who will suffer the least financially are of course the poorest since they have very little to lose. At the same time, many of the poor will die of famine and disease. The middle class will also suffer since many will lose their jobs. They will also lose their pensions because pension funds will become insolvent. Also, there will be no social security since governments will run out of money.

In financial terms, the wealthy will lose the most since virtually all the assets they own will go down by at least 90% in real terms. This includes stocks, bonds and property. In addition, a lot of trophy assets like art and collectible cars will collapse in price. The holders of productive, real assets like agricultural land will fare a lot better. The holders of physical precious metals such as gold and silver will also do extremely well as long as they are held outside the financial system. 

In the last 100 years, governments, central bankers and bankers have created a Supernova. “A Supernova is an astronomical event that occurs during the last stellar evolutionary stages of a massive star’s life, whose dramatic and catastrophic destruction is marked by one final titanic explosion.” — (Wikipedia)

Supernova

kwn-greyerz-i-422017

The Great Collapse Will Engulf The World
The only question is will this final and titanic explosion will be slow or happen very quickly? What is clear is that the $500 trillion or more of debt and unfunded liabilities will need to implode along with the $1.5 quadrillion of derivatives. In addition, central banks will have to print quadrillions of dollars in a futile attempt to save the world. All that will of course disappear as the Great Collapse engulfs the world. And as the Supernova of debts explodes, the assets backed by these debts will implode. The consequence will be a wealth destruction of massive proportions, making the world suffer for a very long time. 

But a cleansing of the over-indebted and corrupt system is the only way for the world to start from a sound, debt-free base. It is like a having a fire of an old forest to clear out the deadwood and create the right conditions for green and strong shoots. As long as the debt is still there, the world can never grow soundly. In the last couple of decades, there has been no real growth because for every one dollar increase in GDP, several dollars of debt must be created. This is not just the law of diminishing returns but the law of negative returns. We have a world running on empty and until the debt is cleaned out, it will never be possible to show real growth again…..more here