My Blog
Don Coxe continues:
“There is going to be very little impact on inflation accept positive near-term because what they are doing is slaughtering pigs and cattle because they can’t afford to feed them. So we are going to get a reduction in food inflation near-term.
But over the longer-term what this is going to mean is much more food inflation, but it won’t start showing up until well after the barbecue season. It’s going to mean that the winter is going to be a much more chilling experience for the consumers because there is no question that food prices will be, by then, meaningfully higher.
And they are going to stay that way....
Continue reading the Don Coxe interview below...
Advertisement
To hear which company $10 billion Sprott Asset Management and Sun Valley Gold
are the largest shareholders of and why click on the logo:
“We have gotten a plateau, at a higher level, that we are going to see of higher food costs. And, as you say, this is not a time where consumers have that extra margin to easily absorb it.”
Coxe issued this warning regarding Europe: “The situation (in Europe) has gone from worse to truly awful in the last week. There was so much idiocy about (speculation) that Angela Merkel had been beaten up by them and that they had triumphed over the ‘Iron Lady.’
The only agreement that they really got was one that’s going to take months and months to implement, and only if all of these countries live up to their promises. There’s very little chance of that.
Right now, in Spain, which was one of the supposed victors in this, not only is the central government in trouble and Spanish bond yields have soared, but in addition you’ve got the various provinces going broke one after another. They are coming desperately, cap in hand, and it’s not clear who supplies it.
Greece is meeting with the Troika again this week. There’s no chance they’ve met their responsibilities. So by the end of the summer we might be facing two of the PIIGS going into default without any new schemes coming forward.
Well that puts Italy, still default-free, right in the gunsight. We’re going to see a lot happen over there. Everybody goes on vacation in Europe, all of the elites, in August. I don’t think they are going to be having good vacations. The era of the Blackberry has changed that.”
When asked about gold, Coxe responded, “China is taking over that role from India as the biggest cash buyer. If the monsoon arrives in India, and if it’s a strong monsoon, then I would expect India to reenter the gold market. But at the moment we need that Chinese buying or gold would be struggling to stay above $1,500.”
The information above was just a small portion Don Coxe’s tremendous interview. Because of recent turmoil in the markets, this timely and important interview with Don Coxe 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 interviews with Eric Sprott, Nigel Farage, Peter Schiff, John Embry and Egon von Greyerz are available now. Also, be sure to listen to this week’s line-up of other KWN interviews which include Bill Fleckenstein, Jean-Marie Eveillard (oversees $50 billion), Michael Pento, Gerald Celente by CLICKING HERE.
Eric King
Don Coxe - The Global Situation Is Becoming Quite Desperate
With stock markets trading in the red around the world, today King World News interviewed 40 year veteran Don Coxe. Coxe told King World News, “The situation (in Europe) has gone from worse to truly awful in the last week.” He also warned that “... by the end of the summer we might be facing two of the PIIGS going into default.”
Coxe, who is Global Strategy Advisor to BMO ($538 billion in assets), also spoke about the drought, which has been one of the worst in the past century: “It’s going to mean that the winter is going to be a much more chilling experience for the consumers because there is no question that food prices will be, by then, meaningfully higher.”
Coxe also discussed gold, but first, here is what he had to say about the severe drought: “This is one of the three biggest droughts of the last 100 years. In the regions where it is established, it’s been brutal. Those farmers who do not have irrigation equipment, in most cases, are just going to have to plow their crops under.”
© 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.
July 23, 2012
