Man Who Predicted No Fed Tapering Now Says To Expect Chaos
September 20, 2013
On the back of a wild week of trading in global markets, today the 42-year market veteran, who correctly predicted on Tuesday that the Fed would not taper, is now warning King World News that we should expect chaos in the aftermath of this week’s historic events. He also discussed what all of this means for gold and silver. Below is what Egon von Greyerz, founder of Matterhorn Asset Management out of Switzerland, had to say in his interview.
Eric King: “Egon, astonishingly, you correctly predicted that there would be no Fed tapering this week. That Fed decision certainly shocked the world and shocked the financial markets. Where do we go from here?”
Greyerz: “Yes, Eric. It did not surprise me at all that the Fed did not taper because for a patient on life support that is not the time to turn off the machine because that machine is what keeps the patient alive artificially. So how can the Fed possibly slow tapering?
The US is a country with a total government debt of $220 trillion, unemployment at 23%, the job participation rate at the lowest level since the 1970s, median household incomes at multi-decade lows, and real-GDP declining since 2006. We have also seen federal debt double since 2006, and consumer credit has been exploding. So the picture is clear….