Today the man who 52 days ago remarkably predicted the collapse of the euro against the Swiss franc just issued a second terrifying prediction.  

This King World News interview takes a trip down the rabbit hole of desperate central banks, massive losses and total global collapse.
 
Eric King:  “Egon, the ECB has just announced this 1.1 trillion euro package in a desperate attempt to fight off deflation.”
 
Greyerz:  “These decisions by the central banks have virtually no impact whatsoever on the underlying economy over the longer-term.  They did what they had to do because the European banking system as well as the economy is in dire straits.
 
Central banks still believe that by printing money they can kick-start their economies and save the financial system.  That’s not the case.  There is no chance whatsoever to change the outcome of an indebted and bankrupt European economy….  

Even though this will have a short-term effect on markets, people need to understand that this just creates even more debt that will never be repaid.  But the ECB is now pushing on a string because, sadly, printing money is the only thing they know how to do.
 
As it becomes clear that this new money printing program is also a failure, the ECB will then accelerate the money printing.  This will have the effect of rapidly debasing the purchasing power of the euro and it will also lead to even more chaos in Europe.  It is of paramount importance that investors protect themselves against this coming wealth destruction.”
 
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 Positions
 
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.” 

***ALSO JUST RELEASED: Paul Craig Roberts – The Whole World Is Staring Down The Barrel Of A Gun As Collapse Looms CLICK HERE.
 
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The audio interviews with Dr. Paul Craig Roberts, Gerald Celente, Lord Christopher Monckton, Michael Pento, Bill Fleckenstein, David Stockman, Dr. Philippa Malmgren, Egon von Greyerz, Stephen Leeb, Andrew Maguire, John Embry, Rick Rule,  Rick Santelli, John Mauldin and Marc Faber are available now. Other recent KWN interviews include Jim Grant and Felix Zulauf — to listen CLICK HERE.