Art Cashin continues:

“They (the Israelis) have just mobilized another 75,000 men.  If the Israelis are coming in, they (Hamas) will want to use those intermediate-range missiles.  We just had two missiles fall just short of Jerusalem today.  So it’s obvious the range is expanding.

But what I worry about most in that area is that Mr. Morsi (President) of Egypt does not have a full-blown or stable government.  That could lead to precipitous or irrational moves.  So far there have not been definitive signs of anything like troop movements in Egypt, but that is another fear that I think will lurk in the back of many minds going into the weekend.”

Art Cashin has been warning for some time now that this type of conflict was going to begin to take place.  He has been escalating those warnings recently.  When asked on a scale of 1 to 5 (five being the highest) where he rates the danger now in the Middle-East, Cashin responded, “Probably 3.5 headed to a 4.”

Cashin continued:  “So far it has remained a conflict between Hamas in Gaza and Israel, with some hint that if the Syrians can free-up a little troop at the Iranian behest, they may put some pressure on the Syrian Golan Heights area.  That is why I believe oil has not spiked largely.  So far it (the conflict) is not threatening any of the passageways.  None of the three nations involved are large-scale oil producers. 

Were the conflict to widen, to begin to spread further in the Middle-East, it would immediately address itself in the oil markets.  Probably with Brent moving more sharply.  We’re seeing a little hint of that with the weekend worry.  As we are speaking, West Texas (crude) is up about $1.25.”

When asked if the price of gold holding stubbornly above the $1,700 level was related to geopolitical worries, Cashin responded, “I think it’s certainly linked.  It has not fully spiked.  People are cautious because we have several inter-related things.

One is the currency and the relationship of the euro.  There has been a lot of use leverage in the carry-trade and some of the people who bought gold are there.  So I think you are having some caution, less a few of the less-well-financed get caught in a margin squeeze.

But you are right, it (gold) refuses to go down.  People will see it as the ultimate storehouse of value, particularly if there is a flight to safety.  But for now it’s in neutral territory.”

Cashin also cautioned, “What troubles me in that area is the call for elections in Japan, and the fact that Mr. Abe, who had been Prime Minister, may come back.  He has called for unlimited monetary easing from the Bank of Japan and the Ministry of Finance.

It sounds to me like we are on the verge of a major currency war, under the guise of monetary policy.  He specifically said, ‘I want to see the rate of inflation go above 3%.’  Now I’m sure they are bright enough not to get into something like Germany in the Weimar Republic.  But we’ve got central banks all around the world beginning to play with fire.”

This is an incredibly powerful and timely interview with Art Cashin.  The above information was just a small portion of his interview.  KWN readers around the world will not want to miss this audio segment as Cashin covers the incredible dangers facing the financial world today, from currency wars to, unfortunately, the possilbility of ground wars. 

Because of rapidly unfolding events, the King World News interview with Art Cashin 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 Don Coxe (BMO $538 billion), Ben Davies, Art Cashin (UBS $612 billion), Nigel Farage, Bill Fleckenstein and Rob Arnott (RALLC $100 billion) are available now.  Also, be sure to listen to other recent KWN interviews which included Gerald Celente, John Hathaway, John Embry and Stephen Leeb by CLICKING HERE.

Eric King

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© 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.

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