James Turk continues:

“So I think we can probably expect more volatility within recent trading ranges, particularly the stock market because it is the one that I think the central planners intervene the least.  But the stock market is rigged too, which has driven countless people from it.  The hosing given to retail investors in the Facebook IPO is just one example.  NYSE volume is now down more than 50% from its peak just a few years ago.

People sometimes forget that we got into this fiscal cliff situation because the can has been kicked down the road time and again....

Continue reading the James Turk interview below...


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“It started decades ago when the constitutional requirements for sound money were abandoned, ushering in a period of easy money and government largesse.

The can kept getting kicked and eventually landed right where we are today.  Will there be a solution?  Of course solutions will be proclaimed, just like President Nixon proclaimed in 1971 that closing the Gold Window and ending the dollar’s formal link to gold was a solution.  He bought some time, but ultimately made things worse.  Politicians never propose solutions.  As sure as the sun rises every morning, they always take what they believe to be the soft political option.  It won’t be any different this time, and the central problem will be ignored.

Specifically, government has become far too large a percentage of GDP.  I'm not just talking here about the increasing regulatory burden placed on companies, but all government activity.  Government spending is even more now than during WWII when the country was on a war footing. 

The public sector has also become too large compared to the private sector, or to put it more colorfully, there is an imbalance between tax-eaters and taxpayers.  Government has expanded way too far in nearly all sectors of the economy, and history has shown there is a harsh consequence for such expansion.

I have just finished reading a study published by New York University which shows the median net worth of American households has dropped to the same level as 1969.  And they reach this conclusion using the government’s CPI calculation, so it is safe to say that average Americans are poorer now than in 1969.

In short, the central planners are decimating the American middle class with government and central bank policies, which is frightening because the middle class is the backbone of capitalism.  It is the middle class that accumulates the savings and drives the production which raises standards of living.

The same thing is happening all over the world, Eric.  Greece went over the fiscal cliff five times, and is still falling.  And just about every other industrial country in Europe, as well as Asia, is teetering on the edge of the precipice.  The US situation has particular significance because the dollar is the world’s reserve currency.  So we need to watch the US situation carefully over the next few weeks.

On a day like today when the metals are getting pounded by the cartel, it’s important to step back and look at the big picture.  And the bottom line here is that we have some tough times coming.  We need to prepare for it, and of course the best way to do that is by accumulating physical gold and silver. 

The reason they are attempting to make gold and silver look weak here is because these monetary metals will provide the foundation when the monetary system is eventually re-constructed, and the price of gold and silver will be far higher than the numbers they are painting the tape with today.  But before that day comes, they need to shake as many people out of these markets as possible so they are victims of the greatest wealth transfer in history, not beneficiaries.”

© 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 Eric Sprott, Gerald Celente, Stephen Leeb, James Turk, Egon von Greyerz, Michael Pento, Wilbur Ross, Don Coxe (BMO $538 billion) and Ben Davies are available now.  Also, be sure to listen to other recent KWN interviews which included Art Cashin (UBS $612 billion), and Nigel Farage 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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