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8 Apr, 2018 06:11

Real global economy on a road to nowhere – expert to RT

Real global economy on a road to nowhere – expert to RT

Since the 2008 financial crisis, central banks have pumped trillions of dollars into the global economy. However, those trillions were created out of thin air, according to Claudio Grass of Precious Metal Advisory Switzerland.

Claudio Grass told RT: “I believe even the average person on the street in the Western world realizes that something is fishy. The real economy on a global scale is going nowhere and the pressure especially in the Western world at the working space is accelerating.”

According to him, everything eventually comes to an end and so will the institutionalized denial and the policies of postponing the inevitable.

“Governments and nation states can go bankrupt, and we’ve seen how that looks like already, multiple times in the 20th century, hyperinflation, true economic mayhem and the suffering caused to the average citizen.”

Since then, the whole system became more leveraged and more artificial and much more interconnected, Grass said. He warned that the next time a real crisis hits, “we are set up for an economic devastation of much larger scale.”

Central banks all over the world tried to fight a debt crisis by adding more debt, he explained.

“If this would work, then the central bank could hand each individual €1 million for free without having to work for it. Why don’t they do it? Because then even a child could see that this is pure nonsense.”

According to Grass, in 2008 we stood at $140 trillion of credit and today, 10 years later – at $230 trillion. “It’s also interesting to note that most of this debt has been built up since 1971, when Nixon took the world off the gold standard. Since then, central banks just fought every crisis by piling up the already exorbitant debt and coming up with increasingly absurdist ways to do so,” he said.

For more stories on economy & finance visit RT's business section