As we get ready to kickoff trading at the start of a new week, today the man who has become legendary for his predictions on QE and historic moves in currencies, warned King World News that Pandora’s Box is about to be opened once again and it will lead to disastrous worldwide consequences.

Pandora’s Box
(King World News) – Egon von Greyerz:  “In the old Greek mythology, the opening of Pandora’s box unleashed many evils on the world. Within the next few years, we will see a modern Pandora’s box being opened that will lead to events in the world which will be as devastating as when the ancient box was opened. The very big difference is that this time the consequences will not be part of historical mythology. Instead they will be real and catastrophic for the whole world on a scale never experienced in history…

Egon von Greyerz continues:  “Pandora – the all giving – was the first human woman created by the Greek gods. Zeus ordered her creation to punish humanity due to Prometheus’ theft of the secret of fire, a secret he gave to humanity. Pandora got hold of a Box (actually a jar) belonging to Prometheus’s brother and opened it, thereby letting out all the evils of humanity including death and disease. Realizing her mistake she closed the jar and the only thing left inside was Hope. Just as the punishment Pandora inflicted on humanity, the world will in coming years be punished for the excesses, debt, deceit, lies, decadence, and lack of moral and ethical values. As the modern Pandora’s box is opened, there will be so many problems and shocks the world will experience that the list will be endless. 

There have been numerable periods in history when a sound economy based on sound principles has been transformed into massive debts, money printing and war. Some of these cycles have been of a smaller magnitude and virtually all of them have been local or regional. Thus we have seen many examples of economic collapse in individual countries like Argentina or in regions like the Roman Empire. But never before in history has virtually every country and every region been insolvent or bankrupt simultaneously. 

If we start with China, debt has grown exponentially in this century from $2 trillion to $40 trillion. Like most debt based countries, China has to grow debt at ever increasing rates to expand GDP. Since 2009, Chinese debt has grown 3x faster than GDP. China’s debt to GDP ratio is estimated at around a massive 300%. But if we base debt to GDP on the Financial Stability Board figures, the result is very different. Included in their calculation is also all Financial Assets. On that measure, the Chinese debt to GDP ratio is a staggering 833%. 

But China is not the worst. Using the same measure, the UK has 1,008% debt to GDP with many industrialized countries being above 400% as the table shows. Switzerland with a banking system which is too big for the country would also be at the top of the list…..more here