James Dines continues:

“Blind repetition of what is not working has been described as insanity, and that is what the Fed is engaged in right now.  For many years I’ve been predicting a coming currency upheaval, and we’re in one now, only they don’t see it that way.  One of my other predictions has been the coming debt liquidating depression, and we’re observing one right now in Europe.

It’s horrifying that they are all trying to bail each other out with the same tired policies of money printing and lower interest rates.  It’s not working, and a collapse of Europe’s banking system is inevitable....

Continue reading the James Dines interview below...


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“The only thing that can postpone it, not fix it, would be liquidating all of these debts through bankruptcy.  One of the functions of capitalism is bankruptcy. 

The trouble is if Greece and Spain go under, the German and French banks will go under.  So they are trying to solve the excess creation of paper money by printing even more money, and trying to get out of debt by borrowing even more.

Their antics can only be described as crazy, and based on crackpot theories of economics that are fallacious on the face of them.  The truth is the problems are built-in and secular.  This is the result of what I call ‘low states’ creating backfires in the opposite direction.

So until the restructuring of society occurs, none of these methods will work.  Greece has been ruined by the socialist party in power, and France just elected socialists.  We can only wonder at the dazzling human folly involved.  Regardless, all of these attempted cures will only be temporary until they are swept aside so that nations can start again from scratch.

What will happen to Greece next?  They are actually favoring parties that are even more controlling, including 7% to the Nazi party.  So it looks as if they are headed to Martial Law because a nation that is irresponsible with its financial freedom can only be corrected by force.

The whole world is in a slowdown.  My sell signal on China still stands.  It’s triggered a commodities bear market.  You can see it happening in cotton and sugar.  Now the whole soybean complex, despite today’s rally, is also breaking down.   

The money has obviously been going into US Treasury bills, notes and bonds because they are at record lows and in some cases below face value.  What this means is that people are being charged by the government to act as custodians of their money.  

This is another example of insanity because the money could simply be left in cash and it would be performing  better than buying a bond at a guaranteed loss.  It is clear that mass fear controls today’s investors because speculative sentiment is so low, it’s almost non-existent in mining stocks.

Meanwhile, the stock market has whipsawed back and forth in these highly emotional times, and today you have Bernanke talking about the ‘fiscal cliff.’  But the ‘cliff’ descriptive is better suited to describe Bernanke’s IQ or lack thereof.  We will have to go through a wipeout before he gets it.  The bottom line is that unless something is done, the United States is headed towards a Greek tragedy of its own.” 

© 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 MEP Nigel Farage and Michael Pento are available now.  Also, be sure to listen to this week’s line-up of other KWN interviews which include Dr. Stephen Leeb, Don Coxe ($538 billion BMO), Art Cashin ($612 billion UBS), Rob Arnott ($100 billion RALLC), Newmont CEO Richard O’Brien, John Hathaway and James Turk 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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