Andy Duncan Interviews Claudio Grass
Andy Duncan of FinLingo.com has interviewed our friend Claudio Grass, managing director of Global Gold in Switzerland. Below is a transcript excerpting the main parts of the first section of the interview on the problems in the European banking system and what measures might be taken if push were to come to shove.
Andy Duncan of FinLingo.com (left) and Claudio Grass of Global Gold (right) – Click to enlarge
Andy Duncan: How do you see the current situation in banking particularly in Europe?
Claudio Grass: One interesting indicator is that today in certain countries not bankers are making the highest average salaries any longer , they have been replaced with government servants. Overall I would say it is bad, but that was predictable. The system and the assumptions the whole sector is operating under are just not sustainable, and printing money out of thin air does not create wealth; on the contrary, it is destroying capital.
All state interventions have backfired and current monetary policy with low / negative interest rates is putting insupportable pressure on the banks. Bad actors have been allowed to get away with reckless and catastrophic positions for too long.