Greyerz – The Shocking Truth About Warren Buffett’s Investment In Gold And The Real Reason Why He Did It

Today the man who has become legendary for his predictions on QE and historic moves in currencies and metals discussed the shocking truth about Warren Buffett’s investment in gold and the real reason why he did it.

A Trip Down The Rabbit Hole Of CV And Buffett’s Investment In Gold
(King World News) – Egon von Greyerz:  Is CV the most perfect distraction that could have hit the world? The timing couldn’t have been more perfect for the European and American economies. We know that there were major problems in the financial system back in August-September 2019 when both the ECB and the Fed declared that they would do what it takes. And since then we have seen massive injections of liquidity in the form of QE and Repos. 

The world was never informed of what the financial problems were but it is obvious that this was the hangover from the 2006-9 financial crisis, which was never solved but just deferred with the help of unlimited money printing and credit expansion. There was clearly something rotten in the kingdom of the financial world. 

FRIGHTEN THE PEOPLE WITH HOBGOBLINS
So was it just coincidence that Coronavirus started spreading around the world in January-February this year? Throughout history, initiating a crisis has always been a popular remedy that leaders have applied to divert attention from the real problem whether it be political or financial. The normal course of action would be a military conflict. This would both enable massive money printing and also alarming the people which would result in more votes for the ruling government.

The American writer Henry Louis Mencken understood the purpose of these actions:

I am not someone who subscribes to conspiracy theories, but however the Coronavirus started, it has certainly diverted the attention away from the underlying problems in the financial system. And whether it is a hobgoblin or not, it has allowed some governments around the world to blame it all on CV and run huge deficits combined with massive liquidity injections. 

CORONAVIRUS – OUTCOME WORSE WITH AUTOCRATIC LEADERS
If we look at the effects of CV on various countries, the differences are astounding. Sweden, which has had virtually no lockdown saw an 8.6% fall in GDP in Q2. Much of the fall was due to lower exports as other countries bought less Swedish products. Switzerland, which only has had a very limited lockdown had a 6.4% GDP fall in Q2. 

If we then look at the two countries which have totally mismanaged the situation – USA and UK – the outcome is disastrous. US GDP fell 32.9% in Q2 and the UK GDP was down 20.4%.……more here

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