Greyerz – Gold Bottom, $25 Trillion in Debt, ECB & Swiss Franc
April 6, 2012
oday Egon von Greyerz told King World News that around the world, the average debt to GDP is at a staggering 350%. Egon von Greyerz is founder and managing partner at Matterhorn Asset Management out of Switzerland. Von Greyerz also stated that even if the number was cut in half, to 175% debt to GDP, it would require the elimination of $25 trillion of debt. But first, here is what Greyerz had to say about what is happening in Europe: “Yesterday the Swiss franc came very close to the 1.20 level versus the euro. This is happening because bad economic news is coming out of Europe. Industrial production is falling and Spanish rates versus German rates, there is now a 4% gap, now people are getting worried about that again. So they are buying the Swiss franc.”
Egon von Greyerz continues:
“The problem is that Switzerland is expanding its balance sheet like every other central bank. Switzerland is no better off, and to buy Swiss francs is not the solution. These investors are now attacking the euro/Swiss franc spread.
By doing that they are increasing the deficit of the Swiss National Bank because the Swiss are having to spend more and more money to protect their currency. So investors buying the Swiss franc is actually very bad for Switzerland. These investors are totally mad if they think that is protection for them….