Greyerz – The World Is At A Major Inflection Point
KingWorldNews.com
February 11, 2018
On the heels of some serious volatility in global markets, today the man who has become legendary for his predictions on QE and historic moves in currencies, warned King World News that the world is now at a major inflection point.
February 12 (King World News) – Egon von Greyerz: “US economics is extremely predictable. It doesn’t matter who is president and what party they come from because every president will spend more money than the US can afford. On average, US Federal debt has doubled every 8 years since Reagan came to power in 1981. And Trump has just fulfilled the prediction. The budget deal that has just been agreed to is guaranteed to produce substantial deficits in coming years. The current year’s deficit might be just under $1 trillion but thereafter it is virtually guaranteed that the US will not have a budget deficit under $1 trillion for many, many years…
Egon von Greyerz continues: “During Bush Jr, debt went form $10T to $ 20T. Whether Trump will manage to keep below $28T by 2021 is questionable. What is more certain is that by 2025, whoever is president, debt will most certainly fulfill the historic trend of doubling every 8 years. That means a $40T debt in 2025.
The scenario to cause this huge debt is straightforward. Crashing bond and stock markets, high interest rates, high inflation leading to hyperinflation and defaults in the financial system. All that will result in massive money printing on a scale that has never been done in history. It would actually be a miracle if the US debt is only $40T in 2025. With hyperinflation, it could be multiples of that sum.
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