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Jeffrey Saut continues:
“Whether it’s going to be successful in the long-term is a very good question that I don’t have the answer to. The major problem is you can’t have 17 countries with a common currency, without having a common fiscal policy. They never got that, so you have this complete misallocation of capital into the Mediterranean countries that left them totally uncompetitive with the Germany’s of the world.....
Continue reading the Jeffrey Saut interview below...
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“Now I don’t know if you can fix that in the long-run, but they sure as heck are going to try to paper over it.”
Europe is now talking about a $2 trillion bailout package. Saut had mentioned this to KWN in the past, and when asked about it, Saut responded, “I had mentioned that in the past, and that’s the kind of bazooka you need to pull to try to at least get over the short-to-intermediate-term funding problems.
I think the European economy is going to struggle for many, many years. They are in a situation where the only way to get out of this is to grow your way out of it. The problem with the bailouts is they are implementing austerity programs with it, and when a country is already in a recession or near recession, forcing austerity programs on them I don’t think is the cure.”
This was a small portion of what Saut had to say about gold: “I still think gold is in a secular bull market. All it’s doing is digesting its huge gain over the past 10 or 11 years. Longer-term I think it goes higher.”
Saut also added: “I think over the next 5 to 10 years you want to own dividend paying stocks, and not fixed income. Interest rates can’t go much below zero, and while we don’t think rates are going up in the short-to-intermediate-term, they most assuredly are going up in the next 3 to 5 years.
Inflation is assuredly going to come back because you cannot find any economic system in the world that has had this much cash thrown into it, and not had inflation come out the other side.”
This is a tremendous interview with Jeffrey Saut. He discusses gold, Europe, Asia, the US and what to expect going forward from stocks and bonds. The KWN interview with Jeffrey Saut is available now and you can listen to it by CLICKING HERE.
© 2012 by King World News®. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. However, linking directly to the blog page is permitted and encouraged.
The interviews with Art Cashin (UBS $612 billion), Jeffrey Saut (R.J. $360 billion), John Embry, Gerald Celente, Rick Santelli, Michael Pento and Don Coxe are available now. Also, be sure to listen to last week’s line-up of other KWN interviews which included, Pierre Lassonde, Rick Rule, Nigel Farage and Ben Davies by CLICKING HERE.
Eric King
The $2 Trillion European Bailout Package Is Coming
Today Jeffrey Saut spoke with King World News about gold, a $2 trillion bailout in Europe, and what investors should expect going forward. Saut, who is Chief Investment Strategist for $360 billion Raymond James, had this to say about discussion of a $2 trillion European bailout: “I had mentioned that in the past, and that’s the kind of bazooka you need to pull to try to at least get over the short-to-intermediate-term funding problems.”
Here is what Saut had this to say: “I have said it, politicians, bureaucrats, and bankers are the same in Europe as they are here. They do not want to lose their power, and if the EU implodes, they all lose their power. So I think they are going to continue papering over the situation, and try to buy more time, just like we did here in our ’07/’08 financial fiasco.”
© 2012 by King World News®. All Rights Reserved. This material may not be published, broadcast,
rewritten, or redistributed. However, linking directly to the blog page is permitted and encouraged.
October 11, 2012
