Skip to content

Quantitative easing = Unlimited printing

By Egon von Greyerz

Founder and Chairman

by Egon von Greyerz

The Fed decided yesterday to spend another $ 1.15 trillion to try to save the financial system. They will spend $ 750 billion to  buy mortgage backed securities and $ 300 billion to buy long term Tresuries.

These purchases will make the Fed’s balance sheet baloon to $ 4 trillion. Most of their assets will consist of worthless and unmarketable paper.

The total committed spending by the Fed and US treasury is now approaching $ 13 trillion. This amount is higher than US GDP for 2009!

But this won’t be enough. We have previously forecast that total support  or money printing will reach $20-30 trillion. We now ask ouerselves if this will be sufficient.

One thing that is guaranteed is that this unlimited money printing will lead to hyperinflation.

Markets responded instantaneously to the Fed statement with the dollar falling like a stone. The Euro is today up 5% against the dollar since the statement yesterday. Gold and silver surged on the statement.

I have just seen a video from Zimbabwe showing traders refusing anything but gold as payment for food. A loaf of bread is 1/10th of a gram of gold (€ 2 or $ 2.80)

This is the effect of unlimited money printing. Nobody wants paper money since it is totally worthless.

Matterhorn Asset Management is dedicated to wealth preservation through safe and secure silver and gold storage in Switzerland. Protect your gold in the world’s safest vaults. To become a client, click here.

About Egon von Greyerz
Born with dual Swiss/Swedish citizenship, Egon's education was mainly in Sweden. Egon von Greyerz began his professional life in Geneva as a banker and thereafter spent 17 years as the Finance Director and Executive Vice-Chairman of Dixons Group Plc. During that time, Dixons expanded from a small photographic retailer to a FTSE 100 company and the largest consumer electronics retailer in the U... More...

Egon von Greyerz
Founder and Chairman

Zurich, Switzerland
Phone: +41 44 213 62 45

VON GREYERZ AG global client base strategically stores an important part of their wealth in Switzerland in physical gold and silver outside the banking system. VON GREYERZ is pleased to deliver a unique and exceptional service to our highly esteemed wealth preservation clientele in over 90 countries.
Contact Us


Articles may be republished if full credits are given with a link to VONGREYERZ.GOLD