Caesar Bryan continues:

“Japan is already buying government bonds and they are likely going to extend that on Friday into buying other assets.  But in any extent, extending their balance sheet, they need the yen to decline in value.  They need this to help their exports and stock market.

China is also beginning to loosen monetary policy.  Europe, despite what the ECB says, they have done over $1.3 trillion in the LTRO program.  They are also under pressure to ease.  They are under pressure to do more to help Southern Europe.

Here in the US, ‘Operation Twist’ ends in June.  We know the Federal Reserve is very concerned about house prices and they are also concerned about unemployment....

Continue reading the Caesar Bryan interview below...


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“With the end of ‘Operation Twist,’ who is going to be buying at the long end of the curve?

So, the Federal Reserve is going to be back on reflation watch and we will hear something in the next few months about another program.  Central banks, around the world, are all saying, ‘We don’t want a strong currency.’  Obviously that’s a positive backdrop for gold. 

Also, central banks, the non-major central banks, have actually been adding to their gold.  This includes Russia, Mexico and Argentina.  So, a number of central banks are adding to their gold position and I seen no reason why this trend won’t continue.”

Caesar had this to say about the mining shares: “They have been disappointing.  The mining shares, as measured by the XAU index and the HUI index, are now down well over 30% from their highs.  By any definition, that’s a bear market.

There’s been a disconnect, clearly, between the price action in gold and that of the gold equities.  This is very hard to explain because margins are rising.  There’s a time for investors to be stubborn (and hold positions), and this is one of those times.”

Caesar also added:  “The voters in Europe have come down on the side against austerity.  You could argue that they have come down against incumbency.  Certainly incumbency has been rejected, and probably by default, austerity.

Then, in Holland, the junior coalition of the government has left the government.  They are claiming they will not support budget cuts in Holland in order to bring their deficit down.  So, Germany is being increasingly isolated.  

Meanwhile, Southern Europe is in recession and the Spanish banking system is being increasingly funded by the ECB.  So, it’s just sort of a slow grind, with no progress being made.

I also recently read that total Eurozone domestic economy debt as a percentage of GDP is 448%.  We know the banking system has issues in Europe and we know the Europeans are very reliant on banks for credit.  So it’s not a happy situation.”

Be sure to listen to this week’s incredible line-up of KWN audio interviews, which include Art Cashin, John Hathaway, Stephen Leeb, MEP Nigel Farage, Gerald Celente and Jim Sinclair.  You can listen to these outstanding interviews 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.

Eric King

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