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Disastrous Prediction Unfolds
Eric King: “Egon, with remarkable precision you predicted what turned out to be a 58-sigma market-shocking move by the Swiss National Bank. The former White House official, Dr. Philippa Malmgren, told King World News that faith in central banks has now been shattered after massive losses were incurred as a result of the Swiss National Bank going back on its guarantee to keep the peg in place.”
Greyerz: “We don’t yet know what the total losses amount to in the aftermath of the Swiss National Bank’s historic decision but we know they are enormous. The Swiss franc skyrocketed in seconds and the losses around the world are staggering and have already been sufficient to bring down foreign exchange houses and hedge funds. But the losses are impacting the bigger banks and the central banks as well.
Swiss National Bank Still Has To Unwind Massive Losing Postions
As an example, the Swiss National Bank has a position of roughly 500 billion Swiss francs, mainly in euros and dollars. The losses on those currency positions were around 30 percent on the first day. So the Swiss National Bank is now sitting on an unrealized loss of about 80 billion Swiss francs.
In the coming months and years the SNB will have to reduce the size of its balance sheet. So they will need to sell their euros and buy Swiss francs. This is going to have the effect of further strengthening the Swiss franc, which will put even more pressure on the Swiss economy. So it’s a vicious circle for them.
Total Global Collapse
This is what all central banks have done — they’ve trapped themselves in a corner. They have zero or negative interest rates, they are printing more money, and they are buying more assets that they can’t sell and that are worth a lot less than they are paying for them. So every single central bank in the world is bankrupt because they will never, ever get the price for their assets that they paid for them. This is why the financial system will not survive, Eric, and a total global collapse is now in front of us.”
As I have been saying for years now, economic collapse is very likely shortly before (as Bible prophecy warns us) the Antichrist takes advantage of global chaos and seizes power in June 2016. Economists are warning of collapse in 2015. Rabbi Jonathan Cahn says the Shemitah cycle warns of collapse in September 2015. All 16 major US intelligence agencies are warning of economic collapse soon.
Read – Antichrist 2016-2019: Mystery Babylon, Barack Obama & the Islamic Caliphate
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