Claudio Grass: Why This Monetary System Will Collapse

This article is based on an interview with Claudio Grass, Managing Director at Global Gold Switzerland, conducted by Daniel from Future Money Trends.

In the big picture, the $18 trillion total debt (which is only the official debt, as unfunded liabilities are $220 trillion) is by far the reason why the economy and markets are facing a huge risk. When the gold window closed in August of 1971 (by President Nixon), the debt has gone exponential. That is why this system will not survive, it has to collapse, either through a deflationary collapse or a hyperinflationary bust (in which case paper money is going to zero, its intrinsic value). Central banks do not have the situation under control. It is for instance absolutely insane that investors have to pay for Treasuries, both in Switzerland and in the U.S.

Moving into physical gold requires the correct mindset, and the appropriate big picture vision. Investors and individuals should hold physical metals in a safe haven place like Switzerland for the right reasons, not as a trade for instance. And the safe haven appeal of Switzerland is still very much intact. For instance, the U.S. government or IRA cannot approach Global Gold directly. Only in case of a serious case, they can submit the suspicious activity to the Swiss government system, which then will assess whether it is an issue according to Swiss law, and only then can question the gold sitting in a private vault.

Switzerland is recognized as providing a safe storage of assets, and having a safe haven currency. While that is correct, according to Claudio Grass, it is only so when it comes to matters outside the banking system. After 2008, a lot of high net worth investors have come to Switzerland to store their assets.

In this interview, Claudio Grass goes into detail about the specifics of Switzerland, its system, and benefits to individuals and investors.

Banks have damaged Switzerland’s name. As an example, UBS when had liquidity problems, politicians sold the rescue of UBS by saying that Switzerland would go under in case UBS would not make it. Moreover, UBS started to promote tax evasion in the U.S.

But, outside the banking system, politicans have no power to move into any form of confiscation, for instance, which is a result of the way the country is organized.

The way Switzerland is a federalistic country. It has 26 ‘states’ (cantons), which are responsible for taxation, health care, etc. There has never been a centralized government. The power of politicians is limited because of the Swiss structure.

On the other hand, Switzerland is under pressure after the financial crisis. Given that the country is still a democracy in the mid of a growing number of totalitarian regions, it got the perception that money from all sorts of origins (also from irregular sources) is flowing into the country.

A good example is the ongoing referendum against ‘government propaganda’. The Swiss government is running a national TV and radio station, which costs $1.3B and is collected through taxation. The Swiss people can now vote to abolish that (cost).

Listen to the interview

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