A Shocking Fall
by Egon von Greyerz – Matterhorn Asset Management
This month we will discuss what is likely to be a major change both in sentiment and in the economy in the next few months. The autumn of 2009 will be full of shocking surprises in the banking sector, in financial markets and in the world economy. The events that we outlined in our previous newsletter, “The Dark Years Are Here” are going to start unfolding. There will also be shocking falls in stockmarkets, in the dollar and in bond markets. But these falls will create major opportunities for investors which we will also discuss.
The syndrome of hope and false
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INFLATION DEFLATION AND GOLD
Monday, August 3rd, 2009The current debt and asset deflation will not lead to a Japanese 1990’s style deflationary period. It is more likely to lead to hyperinflation in the US, the UK and many other countries.
Hyperinflation
Most people find it very hard to fathom that the current asset deflation is a necessary precursor to hyperinflation. The consequences of the credit and housing bubbles of the last few years have been a financial system which is leveraged to the hilt and with a foundation of quicksand. In order to prop up a sinking financial system just the US government has printed or committed to over $13 trillion and other governments have committed equally substantial amounts.
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Tags: inflation
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