March 24, 2019
As the world edges closer to the next crisis, today the man who has become legendary for his predictions on QE and historic moves in currencies shared with King World News the most important chart of this century and what will take the world by surprise.
Central Banks Continue To Menace The World
March 24 (King World News) – Egon von Greyerz: “The astonishing Fed again proved the consistency of its inconsistency. Since its creation in 1913, the Fed has always been behind the curve. It is hard to believe that this is just incompetence but the recent change of policy hardly seems to be part of a plan. Looking back at the Fed’s policy decisions, it is clear that decisions are reactive rather than proactive.
Central banks have been totally detrimental to the world economy. They serve no constructive purpose whatsoever. As a matter of fact, they are a menace to the world and actually make things a lot worse than they would be if the laws of nature would rule. The natural rhythm of ebb and flow would regulate markets effortlessly without the need for artificial interference by central banks. If demand for credit is too high, the law of supply and demand would restrict the supply by interest rates going up. And if there was no demand for credit, loans would be cheap with rates going down.
Instead, what we have now is manipulated rates at zero or negative and more debt outstanding than ever in history. That breaks all laws of nature and can only happen through false markets. This has led to global debt tripling in this century. No wonder we have massive bubbles in stocks, bonds, and property, together with debt that will never be repaid.