$2 Quadrillion Debt Precariously Resting on $2 Trillion Gold
The comments below are an edited and abridged synopsis of an article by Egon von Greyerz
A Lehman squared moment is approaching with Swiss banks and UK pension funds under severe pressure.
But first, the global circus is reaching more nations, right on cue at the end of the most extraordinary financial bubble era in history.
It is obviously debt creation, money printing and the resulting currency debasement that creates the fall of yet another monetary system. This has been the norm throughout history.
This time started with the closing of the gold window in August 1971, the beginning of a financial and political circus that added more risk and more lethal acts to keep the circus going.
An economic upheaval always causes political chaos with a revolving door of leaders and political parties coming and going. Remember, a government is never voted in but invariably voted out.
It was clear that the circus would end with all of the acts crashing virtually simultaneously, and this is starting to happen now.
In a bankrupt global system, you reach a point when the value of printed money dies and whatever a leader promises can no longer be bought with fake money that will always have zero intrinsic value.
This is happening in the US, the UK, Germany and Switzerland to start with, and most countries are the same.
Up for discussion: Debt bondage; unlimited personal liability; global debt $300 trillion plus $2.2 trillion of derivatives and liabilities; derivatives—the most dangerous financial weapon created; central banks rescuing UK and Swiss banks; central banks need to vacuum $2 quadrillion derivatives; with over $2 quadrillion debt, protection is critical; and over $2 quadrillion of liabilities resting on $2 trillion of gold.