He says even the famous gold trader Jim Sinclair, in an interview the latest King World News, and discuss the response to German Chancellor Angela Merkel of the debt crisis in Europe. Jim also discusses the reality of American political life at the present time, indicating that the surest way for Obama to lose the elections next year for the Fed to move away from inflationary monetary policy. This is a very precarious situation in the Western financial moment.
James Turk’s recent interview with Mr Sinclair can be seen at this link. Fears over the health of the European banking sector – and by extension, the global banking system – are contributing to demand for the US dollar. The gold lease rate – the rate charged for lending gold in exchange for dollars – is at its lowest rate since January 1998.
Moreover, hedge funds and banks are “squaring their books” for the end of the year, meaning taking profits on winning trades and reducing their leverage in order to report favourable end-of-year numbers to their clients. This has exerted further downward pressure on gold futures – accentuated by declining volumes as we head into the Christmas break and an exodus of small speculators in the wake of the MF Global failure.
Longer-term, Silver Wheaton founder Frank Giustra recently summed up the situation well:
“The bottom line is that the money needed to bail out Europe and to fund America’s spiraling debt and future unfunded obligations is in the ten of trillions. IT DOES NOT EXIST. It has to be created by printing money in massive quantities, and despite all the rhetoric you will hear against such policies, in the end it’s the path of least resistance. Printing money is an invisible tax on savings, much easier to initiate, than, say, raising taxes or cutting back on services and entitlements.”
At the same time, the problems are still rising in China, with the Communist Party is now facing an open rebellion from angry villagers in the village of South Wakun. Elsewhere in the Telegraph, Ambrose Evans Pritchard, warns that the country could be faced with the remnants of the epic - after a decade of binge on cheap money. Shanghai Stock Exchange index fell by 30% since May, and now 60% of the peak in 2008.
In the words of Albert Edwards of Societe Generale, "investors significantly reduce the risk of hard landing in China, and other Bric reality (Brazil, Russia, India, China) ... and the 'bloody funny concept of investment" from my point of view
James Turk’s recent interview with Mr Sinclair can be seen at this link. Fears over the health of the European banking sector – and by extension, the global banking system – are contributing to demand for the US dollar. The gold lease rate – the rate charged for lending gold in exchange for dollars – is at its lowest rate since January 1998.
Moreover, hedge funds and banks are “squaring their books” for the end of the year, meaning taking profits on winning trades and reducing their leverage in order to report favourable end-of-year numbers to their clients. This has exerted further downward pressure on gold futures – accentuated by declining volumes as we head into the Christmas break and an exodus of small speculators in the wake of the MF Global failure.
Longer-term, Silver Wheaton founder Frank Giustra recently summed up the situation well:
“The bottom line is that the money needed to bail out Europe and to fund America’s spiraling debt and future unfunded obligations is in the ten of trillions. IT DOES NOT EXIST. It has to be created by printing money in massive quantities, and despite all the rhetoric you will hear against such policies, in the end it’s the path of least resistance. Printing money is an invisible tax on savings, much easier to initiate, than, say, raising taxes or cutting back on services and entitlements.”
At the same time, the problems are still rising in China, with the Communist Party is now facing an open rebellion from angry villagers in the village of South Wakun. Elsewhere in the Telegraph, Ambrose Evans Pritchard, warns that the country could be faced with the remnants of the epic - after a decade of binge on cheap money. Shanghai Stock Exchange index fell by 30% since May, and now 60% of the peak in 2008.
In the words of Albert Edwards of Societe Generale, "investors significantly reduce the risk of hard landing in China, and other Bric reality (Brazil, Russia, India, China) ... and the 'bloody funny concept of investment" from my point of view
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