James Turk continues:

“But the real threat to the euro, as well as the solvency of the banking system, is the level of debt.  As the economy turns down, corporate debt and individual debt, as more of it becomes doubted, the banks are going to have to take losses on that.

Typically, in a recession or depression, losses in the banking system increase.  The debt makes depositors more nervous about their money and would likely lead to more bank runs....

Continue reading the James Turk interview below...


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“But the other thing that happens during an economic downturn is government revenue falls off.  These governments are so highly leveraged already that any decline in revenue is going to question the solvency of government debt. 

A lot of the banks own this government debt, which is another dagger pointing at the heart of the banking system in Europe.  Now the ECB is thinking that by creating more euros out of thin air, they can jump-start the economy and therefore increase government revenue. 

But it’s not working out that way.  It’s like a car that has a flooded engine.  If you keep pumping on the gas, you’re not going to go anywhere because you are not going to get that engine started.  That’s exactly the problem we are facing in Europe.

There is too much debt and too much money being created.  The nervousness that we are seeing with the bank runs and the stock market tanking, this is really feeling like the depression in Greece is maybe a precursor of what’s coming to other countries in Europe, Eric.  That’s the thing that people should really be focusing on.

Greece has been in a situation where the bank run has been ongoing for about two years, but last week it really started picking up some momentum.  The latecomers are starting to get some serious money out of Greece and move it into the rest of Europe.

Richard Russell, many years ago, made a very interesting statement.  He’s someone who actually lived through the Great Depression.  He said that, ‘Coming through the Great Depression, the survivor is the person who loses the least.’

That’s something that we should be thinking about.  How do we protect our assets here?  How do we protect our wealth and our purchasing power?  I keep coming back to gold’s 5,000 year history as money.  I keep coming back to specifics.  What was the way to survive the Great Depression in the 1930s?  It wasn’t to have your money in a bank, it was to have gold and silver.  We are still in major bull markets for gold and silver. 

It’s going to become increasingly clear, as bank runs and financial and economic problems continue to develop around the world, that more and more people are going to be moving to the precious metals.  You are also seeing a lot of central banks increasing their gold reserves.

The whole fiat currency system is so corrupt that the only way you can really protect your savings is if you buy physical gold or physical silver.  You have to exit the fiat currency system completely if you are worried about bank runs.  I think people should be worried because many banks around the world are largely insolvent.

They are not likely to survive in their present forms.  There are going to be a lot more bank runs before this crisis is over.”

This is an important interview with Turk because he discusses the bank runs and the fragility of the banking system at length.  He also talks about the crisis in Europe, gold, silver, the mining shares and where we are at this stage of the bull market in precious metals. The KWN interview with James Turk 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 Nigel Farage and Don Coxe audio interviews are available now.  Also, be sure to listen to this week’s line-up of other KWN interviews, which include Sean Boyd, Egon von Greyerz and Gerald Celente 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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