Renowned hedge fund manager William Kaye says the world faces the prospect of another financial crisis should interest rates be increased and debt burdens be rendered unserviceable.
Speaking to King World News, the Hong Kong-based founder of Pacific Group says the catalyst for a run on gold and a subsequent skyrocketing in bullion prices could be a rise in in interest rates.
According to Kaye the only reason the world’s exorbitant debt stock can be serviced is because of abnormally low interest rates, which have been induced via intervention and manipulation by central banks.
Should interest rates return to their natural state, however, Kaye says “we will be staring at a very high likelihood of a global financial meltdown.”
The only way in which this catastrophe can be avoided, however, it to continue profligate expansion of the money supply, which will push inflation through the roof and lead to an attendant surge in bullion prices.
