Philipp Vorndran of Flossbach & von Storch and James Turk, of the GoldMoney Foundation, talk about Greece and the necessary debt restructuring and how this could be borne by European banks, being between 2 and 3% of the Eurozone’s GDP. However other dangers lurk: Belgium, Ireland, Portugal, Spain or Italy could all pose significant problems in the future. Philipp has just come back from Spain and says that he feels much more confident about there not being a liquidity crisis in the short term, with banking system issues larger than admitted by the government, but still manageable for the next few months. Belgium, Italy and the UK are next on his list of places to visit as he sees significant problems there too. Increasing government instability in Europe is a worrying development given historical precedent. They talk about US government debt being put on negative watch and how people and governments outside the US are reconsidering their holdings of US Treasuries and US dollars as their reserves. They talk especially about China and how the shift to precious metals has started in earnest, as investment options are limited, fixed income gives negative real returns and Real Estate is starting to slow. They talk about how the ECB and the Fed are very much in sync in their money printing strategies, with the monetary base doubling since 2008. Philipp calls out the US on the Treasury bond ponzi scheme and argues that this tag is well deserved from the moment that the Fed became the largest holder of US debt…

Watch the whole 1 hour and 6 minute presentation at www.goldmoney.com In this eighth video, Jesús Huerta de Soto, Professor of Political Economy at Rey Juan Carlos University, Madrid, (www.urjc.es explains why recessions are a necessary corrective to the excesses of the boom period. Huerta de Soto argues that in his native Spain, job losses in the construction and housing sector are necessary owing to over-investment in housing during the boom. He also criticises “stupid” politicians who thought that they had abolished boom-and-bust.
Video Rating: 5 / 5