With global stock markets trading in the red, today Egon von Greyerz told King World News that people are going to witness the greatest financial collapse the world has ever seen. Egon von Greyerz, who is founder and managing partner at Matterhorn Asset Management out of Switzerland, also said, “…investors are under the illusion that the system will continue, but it won’t.” Here is what Greyerz had to say about the the coming financial collapse: “As always, Eric, I’m focusing on the big picture. We are in a crisis, and the outcome is absolutely certain. What is not certain is how we get there. The problem is it’s not only one crisis, it’s a number of crises. We have the first one which is the sovereign crisis.”
“Almost every single major country in the world is bankrupt, and no one has the tools or a plan to get these countries out of this crisis. So countries will go bankrupt by default or by printing excessive money. This situation will continue to get worse and ultimately lead to a hyperinflationary depression.
Click Here to Listen to the Audio
The news is that Peak Oil didn’t come to town just yet, at least not according to the 2011 world oil production reported in the latest BP Statistical Review of World Energy.
(Interviewed by Louis James, Editor, 
With global stock markets on the move, while gold and oil exploded to the upside, today Art Cashin told King World News that for the shorts, “It is a kind of ‘Dear God get me out of here and I promise not to do this again.’ So a general panic along those lines.” Cashin, who is Director of Floor Operations for UBS, which has $612 billion under management, also commented on the spectacular rally in gold and oil. Here is what Art Cashin had to say: “Expectations for this summit were so low that if they came out of it without a fist-fight, we probably would have had a rally. The idea that they may have gotten something moving, caused a spectacular short-covering rally in the euro and put pressure on the dollar. You can see oil is up 8%.”
Today billionaire Eric Sprott gave King World News an extraordinary interview, and it’s not the kind of thing you are going to see in the mainstream media. Sprott told KWN, “…as much as we knew the 99% was having a problem, I can guarantee you the 1% is having a big problem today.” Sprott, who is Chairman of Sprott Asset Management, also said, “the markets go up because the central planners want the markets to go up … The system is imploding on itself, but the central planners want everyone to think it’s fine. They just lie to us.” 
With the sovereign debt crisis centered in the developed world, the traditional notion that all developed markets are less risky for investors than all emerging markets doesn’t hold up anymore.
With global stock markets trading higher, today King World News interviewed legendary value investor Jean Marie Eveillard, who oversees $50 billion at First Eagle Funds. Eveillard told KWN that despite “the fact that the stimulus has been completely unprecedented in scope … the economic recovery seems to be sputtering.” He also discussed the gold market, but first, here is what Eveillard had to say about the ongoing crisis: “There is no doubt that there are major deflationary forces at play. There is also no doubt that the private sector is continuing to deleverage. But in order to prevent the deleveraging of the private sector from sending the economy into a replay of the Great Depression, governments are leveraging themselves.”
Something strange has been happening in India in the last year: while the rest of the “developed” world has been doing all in its power to crush its currency in order to promote exports within a globalist mercantilist system suddenly gone haywire, India has had the opposite problem: with its economy slowing down even as rampant inflation persists, its currency has been sliding against all other currencies. But probably more importantly: plunging against gold, as can be seen on the chart enclosed.
Today 40 year veteran, Don Coxe, told King World News “…the amounts involved are at mind-boggling levels,” in terms of what is needed for Europe’s governments and banks. Coxe, who is Global Strategy Advisor to BMO ($538 billion in assets), also said that European banks, “…have borrowed huge amounts of money, in dollars, under currency swap arrangements,” and “if banks start to go down, we know from 2008, when banks start to crumble, then the whole system falls.” Here is what Coxe had to say about the ongoing crisis: “Well, first of all we’ve got to stop using ‘billions’ because if there is going to be a fund that works, it’s going to have a ‘T’ (for trillions) on it. We are dealing with some very big numbers in the sense that Italy, although it’s not that big of an economy, it’s got the third largest amount of bond debt outstanding.”
London Gold market report
With global markets trading in a sea of red, the Godfather of newsletter writers, Richard Russell, issued the following warning: “… it is dawning on Bernanke that the Fed cannot defeat the powers of deflation and the primary bear trend … and Bernanke knows it, but cannot talk about it – it’s too frightening.” Russell also discussed gold at length, but first, this was Russell’s disturbing conclusion regarding the precarious situation we face: “The Russell view — The Fed and all central banks are fighting the implacable forces of global deflation. This is really the primary bear trend that I’ve been writing about. It’s the result of a fundamental change in the world markets. Suddenly, within the space of a few years, Asia has entered the global economy.”
In a no-holds-barred interview with Bloomberg TV’s Francine Lacqua, the increasingly droopy-faced George Soros remains as sprite-minded as ever in his clarifying thoughts on Europe. His diagnosis is spot on: “Basically there is an interrelated problem of the banking system and the excessive risk premium on sovereign debt – they are Siamese twins, tied together and you have to tackle both” and summarizes the forthcoming Summit ‘fiasco’ as fatal if the fiscal disagreements are not resolved (and as of this afternoon, we know Germany’s constant position on this). His solution is unlikely to prove tenable in the short-term as he notes “Merkel has emerged as a strong leader”, but “unfortunately, she has been leading Europe in the wrong direction”. His extensive interview covers what Europe needs, the Bund bubble, GRexit, post-summit contagion, and Mario Monti’s impotence.
In what might be the most underreported financial story of the year, US banking regulators recently circulated a memorandum for comment, including proposed adjustments to current regulatory capital risk-weightings for various assets. For the first time, unencumbered gold bullion is to be classified as zero risk, in line with dollar cash, US Treasuries and other explicitly government-guaranteed assets. If implemented, this will be an important step in the re-monetisation of gold and, other factors equal, should be strongly supportive of the gold price, both outright and relative to that for government bonds, the primary beneficiaries of the most recent flight to safety. Stay tuned.
My Dear Extended Family,
With tremendous volatility in global markets around the world, today King World News interviewed Ben Davies, CEO of Hinde Capital. Davies told KWN, “it would have been lovely to have had an extreme event happen so that we get to the end of this process.” Here is what Davies had to say about what is taking place: “I think the mini-boom that we had in the nominal gold price, up to $1,900, we’ve been working off that mini-excess sideways. The disinflationary pressures from this concept of credit dying is worrying, and I think it weighs on all assets prices. But gold is doing what it should be doing.”
It’s about time for me to write my piece on $15 silver and $500 gold, I think.
Earlier this year, I ran across an blog post on the Directive 21 site that asked the question: What if Nothing Happens? The context was that of prepping. You know what I mean: the time, the expense, the worry, the whole shebang. Is it worth it, and, more to the point, will all of this effort be wasted?
