Former Bundesbank vice president, Jurgen Stark, has told news agency Libre Mercado that the world economic system is out of control and people should be purchasing gold and silver.

Whilst giving a speech at the Ludwig von Mises Institute in Germany, Stark warned the audience that Central Bankers around the world have lost all perspective on the economic situation. Stark believes a system which allows banks to expand the monetary base via the extension of credit is floored and will eventually collapse under its own weight.

Stark resigned from the Bundesbank in 2011, following a disagreement with the President of the European Central Bank, Jean Claude Trichet over the ECB’s decision to purchase billions of Euros of government debt.