"The West Will Go the Way of Debt Implosions and Inflation" Egon Von Greyertz
Egon von Greyerz: The West Will Go the Way of Debt Implosion & Inflation
Palisades Gold Radio: 5-23-2023
Tom welcomes back Egon von Greyerz, Founder and Managing Partner of Matterhorn Asset Management AG based in Switzerland.
He explains how the debt ceiling is a farce, and a regular show every time it's reached. It's been raised over a hundred times and every time, it's nothing but a political posturing.
This is only going to lead to the debt being increased exponentially.
Firesince Reagan, the U.S. debt has doubled every eight years, and by 2025, it is projected to reach around $40 trillion.
The Fed will likely reach a point where it will no longer be able to control the interest rates. This signifies a dire situation that is further complicated by the fact that no one wants to buy bonds from a country that is technically bankrupt.
To try and keep the debt at bay, the U.S. will most likely deploy inflationary tactics, resulting in an increase in prices.
Additionally, Egon emphasizes that banks in the E.U. are no better off than those in the United States, and the current economic system would have worked much better if supply and demand were allowed to rule, as opposed to the continuous government interference.
Finally, we are seeing a decline in the West, which could potentially lead to occasional conflict. Nevertheless, Egon advises that we help each other to make it through this rocky patch, as it's going to be difficult for everyone no matter what.
Time Stamp References:
0:00 - Introduction
0:43 - U.S. Debt Ceilings
6:13 - Debt Pool Analogy
11:16 - YCC & C.B. Purchases
13:40 - Banking Contagion
23:54 - Bail-In Concerns
27:02 - EU & Western Banking
32:05 - What Breaks Next?
35:00 - Eastern Nations & Gold
42:36 - Domestic Gold Production
47:57 - Gold Price & Meaning
51:08 - Inflation End-Game
54:55 - Concluding Thoughts
Talking Points From This Episode
- Why the U.S. Debt Ceiling is just politcal posturing.
- European banks are just as bad off as the United States.
- The West is in decline and it will take time to correct.