On the heels of continued pressure on global stock markets, today a 42-year market veteran warned King World News that the world financial system and economy is now at a dangerous breaking point. Egon von Greyerz, who is founder of Matterhorn Asset Management out of Switzerland, also included two fantastic charts to go along with his tremendous and exclusive KWN piece.
By Egon von Greyerz Founder Matterhorn Asset Management
January 31 (King World News) – World Financial System & Economy At Dangerous Break Point
In the late 1960s when I started my working life in Switzerland we paid Swiss francs (CHF) 4.30 for every dollar. Today one dollar costs us 90 Swiss cents. Thus, in the last 45 years the dollar has fallen 80% against the Swiss franc. This is of course not what we would expect from the world’s reserve currency. But we all know that the US has abused its reserve currency status and increasingly lived above its means since 1971, thereby creating a massive debt and current account deficit….