A Disorderly Reset With Gold Revalued By Multiples, by Egon von Greyerz

The world is discovering that fiat currencies are fiat currencies, backed by nothing, and rediscovering gold. From Egon von Greyerz at goldswitzerland.com:

Tectonic shifts lie ahead. These will involve a US and European debt crisis ending in a debt collapse, a precipitous fall of the dollar and the Euro with Gold emerging as a reserve asset but at multiples of the current price.

The next phase of the fall of the West is here and will soon accelerate. It has been both precipitated and aggravated by the absurd sanctions of Russia. These sanctions are hurting Europe badly and affecting the US in a way that they didn’t expect, but was obvious to some of us. The Romans understood that free trade was essential between all the countries that they conquered. But the US administration blocks have both the money and the ability to trade of the countries they don’t like. 

But shooting yourself in the foot really hurts and the consequences are in front of our eyes. No foreign country will want to hold US debt or dollars. That is a catastrophic problem for the US as their deficits will grow exponentially in coming years. 

So a debt collapse is not just a looming disaster but a bomb hurling towards the US economy at supersonic speed. 

With the imminent death of the petrodollar and explosion of US debt, there is only one solution for the funding requirements of the US Governmentthe FED which will stand as the sole buyer of US Treasuries. 


So the DEBT spiral of higher debt, higher deficits, more Treasuries, higher rates and falling bond prices will soon turn into a DEATH spiral with a collapsing dollar, high inflation and most probably hyperinflation. Sounds like default to me but that word will probably never be used officially. It is hard to admit defeat even when it stares you in the face!

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