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The world could never ever continue to grow and prosper with a mountain of financial obligation and liabilities that can never be repaid or even serviced. We need a

by Egon von Greyerz of Gold Switzerland

It drives you definitely mad to see a whole world living a lie. How can anyone think that the phony world the Fed and their fellow main bankers have actually developed has anything to do with reality. We have phony cash, phony markets, phony business, phony banks, fake interest rates, phony income, phony pensions, phony social security, fake wealth, fake bail outs, fake buildings, phony holidays, phony cars and trucks etc which develop false lives for most of us specifically in the West. All these fake material values have actually also produced incorrect moral and ethical values.


So you might ask how can it all be phony when we can touch it, use it, or experience it. For individuals who do not understand that it is all fake, let me state that we will all quickly understand how fake it was.

An illusion is specified as ” an act of deception” or “something that produces a false or misleading idea of reality. Which is precisely what we have actually been exposed to. The world had actually been deceived however we have actually all believed that it was genuine.


There is a perception in the world that things will continue as they are and that the Deep State is going to control us all in a totalitarian world. They are absolutely dependent on the world in which they can manage everything through financial obligation and the fake monetary system they have created.


Before the crisis which has simply started is over, worldwide debt, derivatives and unfunded liabilities (medicare, pensions) will practically all disappear. As the financial obligation goes to zero, many of the assets that were funded by the debt will likewise lose 90-100% of their real worth.

In this scenario, the ones in control of the cash will have lost their power since the printing press has stopped operating, and money has passed away. Also, after the collapse of today financial system, utilize will disappear and any banks will just lend what they have in real deposits as was the case when banking started 4000 years ago.

This dystopian system is challenging for most of us to think of because it would lead to a very various world. It is possible that rather of the whole system boiling down in one fell swoop that it happens in stages over a prolonged period. However I fear that things might go really quickly. What is clear is that the world is now starting a secular decrease that’s never ever been seen before and this on a global basis. The very first stage of this decrease has actually now started and will be totally ravaging for the world. However extraordinary this circumstance appears, it is the only possible outcome.


The falsity of the present system will soon emerge. Let’s take some obvious examples of what this false or misleading concept of truth indicates.

  1. Jobs– the unemployment rates we are now seeing of 15-39% depending on how you determine, will become permanent. Many utilized and self-employed will not get their task back. The government has no money to pay these people. Printed money is an illusion and has no value. Take the UK where now 50% of the adults are being paid by the government in aids, welfare, state staff members, and state pensioners. That scenario can of course never ever last. Paying non-productive people with worthless money does not create a sustainable society.
  2. Pensions– Pension funds will not make it through. They have three principal asset classes– Stocks, Bonds, and Residential or commercial property. All 3 will lose the majority of their worth in real terms. All unfunded pension plans will stay unfunded considering that there will be no cash to pay the pensioners.
  3. Airlines– Numerous airlines will go under. Any remaining ones will be incredibly expensive to operate leading to fares increasing significantly. Fewer individuals will fly due to high expenses. Business travel will decrease substantially both for expense factors and because people have just recently found that meetings and conferences can be performed on Zoom or Skype.
  4. Hotels, Tourist– Tourist will decline drastically due to high joblessness and high expenses. Mass tourism will absolutely pass away. The conference service which is a crucial earnings for hotels will also decrease. Much of it will end up being Video conferencing. Most of the luxury hotel market will die.
  5. Workplaces– Big workplaces in city centres will vanish. The world has discovered, during the Corona quarantine, that working from home is incredibly effective and practical. It is also much better for family life. Huge offices will vanish, instead there will be little workplaces which don’t have to remain in city centres. There will be less travelling, less contamination and a much better quality of life.
  6. Big Cities– The need for huge cities will decrease drastically. As people work from house or small local workplaces, huge cities will shrink and lots of will become ghost towns. Retail in huge cities will die.
  7. Big Business– Many will be separated. Globalism with huge dominant worldwide services will disappear. Nations will end up being more self-dependent with the majority of production ending up being domestic.
  8. Banking & Finance– Many huge banks will disappear as the monetary system implodes. Without massive debt, derivatives and take advantage of, banks will return to where they started– financing trade, commerce, and market. There will be no financial investment banks or exclusive trading. Central banks will disappear or have a very much diminished function. There will be practically no money printing. There will be no adjustment of money or interest rates. Market swings will be based upon supply and demand and not reserve bank disturbance. I do realise that some of this sounds like wishful thinking. It is a natural response to the present incorrect and diseased financial system.
  9. Hedge Funds & Private Equity– These companies will disappear as they are totally based on enormous take advantage of and debt. They have no place in a system based upon sound cash. Many hedge funds will go under in the coming collapse as counterparties stop working and derivatives end up being worthless. Private equity has actually damaged numerous good companies by lumbering them with heavy debt and taking all the equity out.

The list above might be a lot longer but this is simply a taste of all the changes that will occur over the next couple of years and years. It will clearly be a progressive process but the very first phases might take place quickly if a major part of the monetary system doesn’t survive the imminent shocks.


The transition from a world based on the golden calf and incorrect worths will be ravaging.

Going from a sick system to a soundly based system will plainly include a lot of suffering. This is the penalty that the world must go through.


If the laws of nature and supply and need were enabled to figure out the length and amplitude of the cycles, they wouldn’t reach the extremes we are now experiencing.

However keep in mind that “ This too will pass” and when the world comes out on the other side, it will be a much better world. Many things will enhance, like household values as well as moral and ethical worths.



Stocks will soon give the world another shock. The financial investment world is presuming we will have a V or U recovery.


As I have actually been composing and tweeting about lately, the world is beginning to find that paper money can not survive when main banks are printing it to death.

If you want your savings to survive the coming crisis, hold physical gold and some silver. Do not store it in a banking system that is unlikely to survive.

Forget about what price the metals will reach. And in hyperinflationary cash, the rate relocation will be exponential measured in worthless paper cash.

P.S. The title of this article “The Forest Fire is Here” mentions a previous post I composed back in 2009 and again in 2018 called the ” The Dark Years Are Here”. It makes some interesting reading, specifically since it now appears that they actually are here.

Become a Customer

Egon von Greyerz

Creator and Managing Partner

Matterhorn Property Management

Zurich, Switzerland

Phone: +4144 213 62 45

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