Governments Desperately Trying To Keep The Illusion Going As Crashing Stock & Bond Markets Set To Shock The World!

Today the man who has become legendary for his predictions on QE, historic moves in currencies, and major global events warned King World News that governments are now desperately trying to keep the illusion going as crashing stock & bond markets are set to shock the world!

Egon von Greyerz:  “Eric, I don’t think the general public has any understanding of what is happening in the world today and the incredible risks we are seeing.  Since 2008, world debt is up over 40 percent and so now the world has unsustainable debt levels of over $200 trillion….

Governments have tried to keep the illusion going by moving rates to zero or even negative in many countries.  But even with all the money printing and stimulus, the world economy has still not reacted to it and has stopped growing.  In fact, economies are actually starting to contract in many countries.

China contributed 85 percent of global growth in 2012.  But China is beginning to struggle and their contribution to global growth this year is only expected to be 24 percent.  Of course that will have major repercussions for the entire world because China has been a huge buyer of both commodities and machinery.  That buying spree is now declining dramatically.

The only thing left in the various governments' tool kits is fiscal stimulus.  But with countries mismanaging their economies and running major deficits, it will be impossible to increase the deficits because it will cause the debt to skyrocket.  Who will repay the additional printed money and debt?

Demographics is also a major problem for industrialized nations.  Take Germany, where 20 percent of the population is already over 65 years old.  That figure will grow to 30 percent by the year 2040.  In Japan, today 25 percent of the population is over 65 but that figure will grow to a staggering 40 percent by the year 2060.

Japanese Economy Won't Survive 400 Percent Debt/GDP Ratio

So there won’t be enough young people working in Japan to keep the economy going in order to pay the pensions for the elderly, much less to pay off the massive debts of Japan.  Look at Japan:  They have 250 percent Debt/GDP ratio today.  By 2035 they will have a Debt/GDP ratio of 400 percent.  Obviously that is totally unsustainable.  This is why the Japanese economy will not survive.

And at the same time that world economic problems are becoming insurmountable, geopolitical risk is increasing dramatically.  ISIS is likely to take all of Iraq in the next few months and then they will threaten Saudi Arabia.  Saudi Arabia is also likely to be attacked from Yemen.  If ISIS foments a civil war in Saudi Arabia, both the United States and Israel will get involved.

The other danger zone, besides Ukraine, is the South China Sea.  China is expanding their territory and they consider that it belongs to them.  But of course the Pentagon has said that they consider China to be a major threat to peace because of this expansion.  China has responded to that by saying that war is inevitable if the U.S. does not stop asking Beijing to halt construction of artificial islands.

So, Eric, the risks are increasing everywhere and the situation could become uncontrollable at any time, both economically and geopolitically.  Problems could erupt at any moment that would shock an unprepared world that would lead to stock and bond markets crashing together along with the dollar.  This will mean skyrocketing gold prices.  In that environment people may see gold soar a few hundred dollars in just a single day.

Exchange Controls To Trap Citizens And Their Money

At the same time governments are doing more and more to control people.  Cash withdrawals are being reduced and more draconian banking measures are being put in place.  This trend will only accelerate with governments seeking even more control over their people.

I could also see exchange controls being introduced in the not-too-distant future.  That will make it impossible to take any money out of the country.  That’s why it is so important to keep physical gold outside of the banking system and preferably outside of your country of residence as insurance against the unprecedented risks that the world is now facing.  

Unfortunately, when disaster strikes, very few people will be prepared.”

Obama's Harvard law professor says 'President MUST be defeated in 2012' (even though he's the man Barack used to have on speed dial)

* Roberto Unger, 65, is respected author and Brazilian politician
* Taught Obama about 'reinventing democracy' at Harvard Law School
* Professor was an adviser during the 2008 election campaign

By Daily Mail Reporter

A former professor of Barack Obama has turned against his one-time student and publicly urged voters not to re-elect him.

Roberto Unger posted a video on YouTube detailing the reasons why he believes the President does not deserve a second term in the White House.

Mr Unger, a prominent Brazilian politician and an adviser to Obama in 2008, said: 'President Obama must be defeated in the coming election. He has failed to advance the progressive cause in the United States.'

The 65-year-old academic was in frequent contact with Mr Obama on his Blackberry throughout the last election campaign but has since decided that he no longer agreed with the President's decisions.

His list of complaints against the President is a long one in the video entitled 'Beyond Obama'.

The esteemed philosopher is scathing of Mr Obama's plans to salvage America's ailing economy, saying that his policy solely consists of 'financial confidence and food stamps'.

He adds: 'He has spent trillions of dollars to rescue the moneyed interests and left workers and homeowners to their own devices.'

The politician admits that if Republican candidate Mitt Romney wins the election 'there will be a cost... in judicial and administrative appointments'.

However his most barbed remarks he reserves for the Democrat leader saying that Mr Obama has 'evoked a politics of handholding, but no one changes the world without a struggle'.

His summary of the past four years is equally scathing: 'Give the bond markets what they want, bail out the reckless so long as they are also rich, use fiscal and monetary stimulus to make up for the absence of any consequential broadening of economic and educational opportunity, sweeten the pill of disempowerment with a touch of tax fairness, even though the effect of any such tax reform is sure to be modest.'

Most of Mr Unger's comments seem to be politically to the left of Mr Obama, but he insists that the Republicans would be no more destructive than the Democrats as 'the risk of military adventurism' would remain the same.

And some would doubtless strike a chord with the President's GOP opponents, including the academic's attacks on Mr Obama's efforts to reform healthcare.

Mr Unger argues: 'He has subordinated the broadening of economic and educational opportunity to the important but secondary issue of access to health care in the mistaken belief that he would be spared a fight.'

He also suggests that, despite their fierce rivalry, the Democrats' agenda is little different to that of the Republicans, saying the party aims 'to put a human face on the programme of its adversaries'.

The professor concludes his video by saying: 'Only a political reversal can allow the voice of democratic prophecy to speak once again in American life.'

Mr Unger is a renowned politician in his native Brazil. He has twice has run for president of Brazil and has served as Minister of Strategic Affairs.

Unger was one of the founding members of the Brazilian Democratic Movement Party and drafted its founding manifesto.

He has also advised on politics throughout Latin America.

The professor is a respected author having published dozens of books on economics, philosophy and politics.

In philosophy, his arguments are said to focus on some the greatest problems of the human existence.

The video, which was posted three weeks ago, has been viewed 22,000 times.

Mr Unger has taught at Harvard Law since 1976.

Obama studied jurisprudence and reinventing democracy with the professor. 

The President attended Harvard Law School in 1988 and was selected as an editor of the Harvard Law Review at the end of his first year.

Last week Obama announced that young immigrants who were brought into the U.S. illegally will no longer be deported.

The Obama administration said the policy change announced on Friday will affect as many as 800,000 qualified immigrants who have lived in fear of deportation.

The President also came in for sharp criticism last week after he combined fundraising events with an official event - and charged the bill to the taxpayer.

Obama raised a total of $4.5million at the fundraisers, one at Sex and the City actress Sarah Jessica Parker's house and the other at the five-star Plaza Hotel.

However, the President's re-election campaign will not have to pay the full cost of his jaunt to the Big Apple, because he scheduled a short visit to the World Trade Center site.