- The Coming Crash Of The Financial And Monetary System!
In an excellent video presentation, Claudio Grass, Managing Director at Global Gold Switzerland, explains why a crash of the financial and monetary system seems inevitable. The presentation covers all actual issues like currency wars, rigged markets, central bankers’ interventions, statistics manipulation, monetary mismanagement and financial repression. Claudio Grass does a great job “connecting these dots” but in a factual way. In this article, we collect several quotes and graphs. The full video presentation is 22 minutes long. Readers are highly recommended to watch the full presentation and subscribe to receive three exclusive reports for free on http://welcome.globalgold.ch.
Claudio Grass explains that what we learn from history is that money doesn’t come into existence by force or legislation. It is in essence a market process; where participants decide freely which medium they want to use. It has to be easily recognizable and transportable. It has to be rare so it can’t be easily reproduced and so it can act as a store of value. Gold and silver fulfill these criteria, have an intrinsic value and are free of any counterparty risks. Therefore, it is clear why historically they were the most wide spread medium of exchange used over a time period of over 5000 years.
Even the USD became the world currency reserve because it used to be a property title for a certain amount of gold , now it is just a debt security. The Dollar as well as all other currencies worldwide have transformed from an “I-own-something” to an “I-owe-you”. Because we believe that history rhymes we are certain that the Dollar and all the other paper-money systems are going to collapse eventually.
The chart on the left hand side below comes from Ray Dalio from Bridgewater Associates. He believes that we are close to a collapse of the current long term debt cycle. He also believe that we are at the top of a long-term debt cycle, therefore it is likely that we will see some deflationary shocks in the future. However, it is our understanding that central banks will try everything to avoid this by printing money to cover up the current problems which will lead to hyperinflation in the coming years. A deflationary collapse would be a “Black Swan Event” which become more probable the more the system is centralized.