Bankrupt World Now Headed Into Frightening
Chaos - (www.kingworldnews.com) With
stocks plunging this week as gold and silver rallied substantially, today Egon
von Greyerz warned King World News that a bankrupt world is now headed into a
period of frightening chaos. Greyerz also warned that banks and
governments will not survive what is coming. Below is what Greyerz, who
is founder of Matterhorn Asset Management out of Switzerland, had to say in
this powerful interview. Greyerz: “Eric, I’ve been thinking
about the end game. The conclusion I have come to is that this will go on
for a long period of time because there won’t be a conventional end to the coming
chaos. These are absolutely historic and unprecedented times. We
have never, ever had a situation in history where most major nations are
bankrupt. Nations are also continuing to run massive deficits, and increasing
their debts now exponentially with no solutions in sight. At the same
time, we have a financial system which is also bankrupt.... “The financial
system almost collapsed in 2008, and since then nothing has been done to repair
it. The debt and the problems are still there and the system is still
bankrupt. So you have a situation where the debt/GDP in countries like Japan
and Greece is now at 200%, and it is 100% in the U.S. and Europe. If we
add in unfunded liabilities, the debt/GDP ratios in most countries is around
500%, and even as high as a staggering 1000%. If you take a look at the
European banking system they need to get rid of 3 trillion euros of loans, but
of course they can’t afford to take the losses. But that 3 trillion euro
figure will become 6 trillion euros and then eventually it will reach 10
trillion euros. If you add in the derivatives losses the numbers are even
more unimaginable.
We're Heading For A Crisis Worse Than 2007 - (www.moneymorning.com) Washington
is engaged in a massive "campaign" to make Americans believe the
economy is in recovery. But in reality the United States is at the brink
of a devastating economic crash that will cause catastrophic market losses and
impoverish millions. That's according to Peter Schiff, the best-selling author
and CEO of Euro Pacific Capital, who delivered his frightening warning to
investors in a recent interview on CCTV. "The problem with politicians is
they don't want to level with the voters and tell them how bad the economy
really is and what the cure for the disease is," Schiff said. The
"disease" Schiff refers to is a toxic combination of our massive
$16.4 trillion debt and the Fed's continued devaluing of the dollar through its
controversial 7-year long "easing" program. The Fed is currently
purchasing $85 billion a month in Treasury and mortgage bonds, a form of
stimulus. President Obama and like-minded politicians claim this stimulus has
pushed the economy forward, boosting GDP and keeping inflation low. But Schiff
says "it's another lie." In fact, according to Schiff, the
government has done nothing more than create a "phony" economy that
is "completely dependent on the ability to borrow more money that we can't
pay back."
Dubai Sees Need for Tallest Office Tower Amid
45% Vacancy - (www.bloomberg.com) In
Dubai, where almost half of the offices sit empty, the head of a state-owned
business zone says there’s room to build the world’s tallest office tower. Ahmed
Bin Sulayem, chairman of the Dubai Multi Commodities Centre, said the Persian
Gulf business hub can still attract tenants and investors with such a project
because many of its buildings are unsuitable for large businesses. Bin Sulayem
helped lead the development of the DMCC’s 68-story Almas Tower, Dubai’s tallest
building when it was completed in 2007. The tower’s full and has a waiting list
for tenants, he said. “The crisis has shown us that well-designed and thought
out developments will always hold value and demand,” Bin Sulayem, 35, said in
an interview in the Almas Tower.
“We will be running out of space and the world’s tallest commercial tower will
help attract more companies.”
Fukushima
Springs Another Leak in Battle With Radioactive Water - (www.bloomberg.com) Tokyo
Electric Power Co. (9501) reported another breach of
the defenses it has built at the Fukushima nuclear plant in its more than
two-year struggle to stop leaks of radioactive water into the soil and sea. Just
weeks after the utility backtracked from earlier statements and acknowledged
radiated water was flowing into the Pacific
Ocean at
a rate of 300 tons a day, it has found another leak from a storage tank. Prime
Minster Shinzo Abe weighed in on the disaster response this month, signaling
that Tokyo Electric alone isn’t up to the task. The government has yet to say
what other measures it’s considering to contain the worst nuclear disaster
since Chernobyl, including bringing in foreign expertise. “Two years down the
line from the accident, I would expect there would have been better plans,”
said Tom O’Sullivan, an analyst with Tokyo-based energy consultant Mathyos.
“It’s a huge logistical challenge and perhaps the Japanese government should
have gotten involved at an earlier stage.”
Bond exodus accelerates as yields creep near 3% - (finance.yahoo.com) Outflows
from U.S. bond mutual funds and exchange traded funds has accelerated in
August, according to a new report by TrimTabs, as fears grow of the threat that
rising yields pose for the U.S. economy. "We are concerned that the Fed is
starting to lose control of the bond market, which is not good news for the
stock market or the highly leveraged U.S. economy," TrimTabs said in the
report. So far this month, U.S. bond mutual funds and ETFs have seen outflows
of $19.7 billion, more than the $14.8 billion of outflows in July. August's
outflow is already the fourth-highest on record, TrimTabs said, adding that
since the start of June bond funds have lost $103.5 billion or 2.7 percent of
total assets. The sell-off in bonds pushed yields on the U.S. 10-year to 2.8656
percent on Monday morning, the highest since July 2011.
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