Egon von Greyerz, founder of a gold investment company, spoke with CNBC this morning about the downfall of Western civilization.
- 0:45 The credit growth since the end of the Gold Standard, along with consumer debt, and the wealth we've created in the last 40 years is based on credit, not on "good times."
- 2:55 Government post financial crisis have patched things up for the banks with $20 trillion, but the same problems are there. And none of this has helped people, with surging unemployment rates.
- 5:00 Austerity measures will lead to deflationary collapse, and banks will collapse in this scenario because none of the loans will be repaid.
- 6:05 The long trends are now a structural decline of the west, which could last 20-100 years, and the east will rise. But China and India will suffer during this correction, with their domestic economies pulling them out of it faster.
- 7:10 Gold will play a major role in the future because it will be part of a future reserve currency.
- 8:23 Gold merely reflects the printing of money, 1 ounce of gold is supposed to buy a man's suit throughout history Link Here..
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