Egon von greyerz

DEUS EX MACHINA

Leo Lein

THREE KINDS OF MONEY

WHO IS THE MOST PRODUCTIVE?

THE DARK AGES BEGIN

100 YEARS OF PAPER

MONEY COLLAPSE

DEBT EXPLOSION

THE DESTRUCTION OF PAPER MONEY

Ounces of gold bought for $ 1,000

Investment Year Ounces Gold

Price

%

change

$1,000 1911 50 $ 20 -99%

$1,000 1971 28 $ 35 -98%

$1,000 1999 4 $ 250 -86%

$1,000 2002 3 $ 300 -83%

$1,000 2011 0.5

$1,800 -

A STEALTH MARKET

GOLD in AUD

GOLD IN AUD IS UP

4.5 X SINCE 1999

CAGR 13%

ASX vs GOLD in AUD

ASX vs GOLD

DOWN 70% SINCE

PEAK IN 2007

AUSTRALIAN HOUSE

PRICE COLLAPSE

1968-1979

Down 90%

2005-2010

Down 40%

BENEFITS SUPERVISOR

SLEEPING by LUCIAN FREUD

EU’s MILK COW SLEEPING

GOVERNMENT DEBT WILL NEVER BE REPAID

DEBTS THAT WILL NEVER

BE REPAID • Government, state, city, municipality debts

• Central bank debts

• Housing loans, personal loans, car loans

• Credit cards, student loans

• Commercial mortgages

• Toxic bank debt

• Derivatives

LOSE - LOSE

• Deflation or Inflation – Austerity or QE

• Deflation – collapse of the financial system

• No bank will survive with deflation

• Money printing – QE

• Currency weakens

• Creates hyperinflation

HYPERINFLATION

CONSEQUENCES • Government deficits explode

• All currencies fall

• Interest rates surge

• Unemployment surges

• Assets financed by credit bubble fall

• Exchange controls

• Financial system will fail

• Social structures break down

• Wars

GOLD STORAGE

Matterhorn Asset Management

• Wealth preservation experts, Zurich

• GoldSwitzerland

– Specialises in physical Gold and Silver bullion

– Stored outside the banking system

– Gold/Silver bars owned directly by investor

– Personal access to metals

– Ultimate form of wealth preservation

THIS IS NOT WEALTH

PROTECTION

• Gold / Silver ETFs in banking system

• Unallocated or allocated Gold/Silver in bank

• COMEX Gold

• Futures Gold

• Bank safe deposit box

• Storing gold at home

TOO LATE TO JUMP ON THE

GOLDWAGON?

GOLD TARGETS

WEIMAR GOLD

From DM 100 to DM 100 trillion

THE FINAL COLLAPSE

“THERE IS NO MEANS OF AVOIDING THE

FINAL COLLAPSE OF A BOOM BROUGHT

ABOUT BY CREDIT EXPANSION. THE

ALTERNATIVE IS ONLY WHETHER THE CRISIS

SHOULD COME SOONER AS A RESULT OF A

VOLUNTARY ABANDONMENT OF FURTHER

CREDIT EXPANSION, OR LATER AS A FINAL

OR TOTAL CATASTROPHE OF THE CURRENCY

SYSTEM INVOLVED”

Ludwig von Mises