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Rick Rule - The Big Money I’m Speaking With Is Frightened
Ahead of the critical meetings taking place in Europe on Thursday and Friday, today King World News interviewed one of the wealthiest and most street-smart pros in the business, Rick Rule. He warned about the current fragility of the global financial system. Rule, who is now part of Sprott Asset Management, also had this fascinating news to share with KWN regarding the big money players he is speaking with: “It was very interesting, Eric, I was at a small conference that was put on for some European and North American offices. You know family office money is a different kind of money than most money, it’s multi-generational money. They represent the very wealthy and they are stable, patient investors. But I have to say, even that kind of money is frightened.”
© 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 This material may not be published, broadcast,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.
June 27, 2012
Rick Rule continues:
“The sense that you have in Europe is that the European political union and the European economic union are faced with some real dislocations. That isn’t to say that it necessarily won’t survive, but certainly from the point of view of the private wealth in Europe, the money managers for those families are quite concerned.
The thing that appears to be first and foremost on the European family’s minds makes perfect sense....
Continue reading the Rick Rule interview below...
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“It’s the dichotomy between the Southern periphery of Europe and the Northern economies, particularly Germany, which are being asked to carry the freight....
The idea that the German taxpayer should shoulder the burden, for societies that have lived substantially beyond their means, really doesn’t carry any water. But if Germany decides not to play the game, the consequences for everybody, including the Germans, are fairly high.
There was an understanding with the private wealth, that I spoke with, that almost every aspect of the bailout is false. In the first instance, it isn’t a bailout of the taxpayers, but rather a bailout of the banks, which have gorged themselves on periphery debt.
In the second instance, in reality, the bailouts have been a mechanism to continue to fund the insolvent governments. Meaning, on paper the money goes to the banks, but in reality the banks turn around and use that money to buy the paper of the insolvent governments.
This paper is then marked to ‘myth’ as opposed to ‘market.’ This is insane and everybody recognizes it’s insane. What I am saying is that the big money in Europe is scared, and quite frankly, they have good reason to be concerned.
I think the reality here is that we are going to go through an extended period of time that is going to be very, very hard. There are large issues that are hanging over the markets right now, as an example demand destruction in the West.
There is also the ongoing manipulation of financial markets, particularly in the Western nations. I’m speaking in this instance about the manipulation of bank balance sheets and sovereign debt. This means we have the very real possibility of experiencing a psychotic break in the markets, such as we experienced in 2008.
But in the midst of all of this chaos, I continue to believe that given the choice between gold as a store of wealth and a medium of exchange vs the euro or the dollar, I am still attracted to gold.
I’ve always been more given to fundamental analysis, rather than technical analysis. Because of that, I actually feel better now than I did three months ago about the gold I have my portfolio, relative to the other ways I could hold my liquid wealth. This is particularly true in the dangerous environment we face going forward.”
The interviews with legendary Jean-Marie Eveillard (oversees $50 billion) and Don Coxe ($538 billion BMO) are available now. Also, be sure to listen to this week’s line-up of other KWN interviews which include Ben Davies, Nigel Farage, James Turk, John Mauldin, Egon von Greyerz and Gerald Celente 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
