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Eveillard - We Are Looking At Catastrophe Going Forward

With global stock markets trading red almost entirely across the board, but gold and silver remaining firm, today King World News interviewed legendary value investor Jean Marie Eveillard, who oversees $50 billion at First Eagle Funds. KWN wanted to get Eveillard’s thoughts on the continued turmoil and what investors should be doing in this environment. Here is what Eveillard had to say: “How I interpreted what was said last year by David Einhorn, at Jim Grant’s conference, was that Bernanke is some kind of madman. Bernanke has written about the Great Depression and got it almost all wrong regarding the real causes of the depression. He is intent on printing money to show that it’s the only way to avoid a return to the Great Depression.”

Jean-Marie Eveillard continues:

“I’ve been in the business half a century, and I can say yes, we are looking at catastrophe going forward. As long as those people are around, and they are not just in the US, they are everywhere because they are all Neo-Keyneysians, but as long as those people are around, the money will be printed. It was true even during the first few years of the Weimar Republic, before inflation became hyperinflation.

It’s not just in the developed world. Look at China and India. Even though the long-term prospects are strong, they might be nearing a big bump in the road. So, current circumstances worldwide are not appealing....

Continue reading the Jean-Marie Eveillard interview below...

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“You know, usually I don’t pay much attention to what the IMF is saying. If one reads what the IMF was saying in 2007, it’s pathetic. They didn’t see it coming at all. Very late in 2007 they had no idea that 2008 would be a complete disaster. They didn’t see the financial collapse coming.

They were still optimistic toward the middle and the end of 2007. So, again, I don’t pay much attention to what the IMF says. But maybe they are finally acknowledging that the eurozone is in trouble. A big mistake was made twelve years ago when Europe decided to have one currency, the euro.

The currency was formed, but at the same time there was no unity in terms of how each government was run. Each country ran its own affairs and levied taxes as it deemed necessary. Of course it would catch up to them, which it finally has.

It seemed to go well for ten years and then it became a disaster. It’s a disaster that some people warned about ahead of time. Somebody once said, ‘What cannot last will not last.’

Investors should look for protection from this global storm by owning physical gold or even gold mining stocks for that matter because they are so undervalued vis-a-vis bullion. I have no appetite for bonds or cash because every central bank is debasing their own currency and cash yields nothing.

My contention is that the inflationary policies are already in place. As long as they are in place, the upside for gold remains intact. I mean every now and then there will be a correction. Some individuals argue that gold must go much lower before we turn around and make new highs.

All I know is that I do not want to lose my position in gold. If you look at the central planners, their idea right now is ‘let’s create more money out of thin air.’ That’s simply wrong. It will have very negative unintended consequences at some point. When? I have no idea. But it will. It will indeed, it always has.”

Eric King

KingWorldNews.com

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