Art Cashin continues:

“By standards, the amount of liquidity that’s around the globe should be hyperinflationary.  It is not.  It is because when Bernanke flies over your house and drops millions of dollars in fresh cash on your lawn, you are so terrified you pick it up and store it in the garage.  They’ve got to find a way to unlock all of that liquidity in the garages around the globe. 

This is a very, very different time than virtually anything we’ve seen before.”

Cashin issued a major warning on the geopolitical front:  “We are at a very serious potential fulcrum point here.  Syria can be extremely critical to what happens in the entire Middle-East, and everybody’s got a stake in this. 

If Syria crumbles and falls apart, it depends on what sweeps into that vacuum.  In the short-run we are worried about the chemical weapons they have.  The Russians purportedly have thousands of Russian marines on the sidelines waiting to see if the regime fades, to swoop in and grab up the weapons.

The Russians fear they (the weapons) could get into the hands of the rebels in Chechnya.  The Israelis are concerned that they could fall into the hands of Hezbollah.  The US is concerned they could fall into the hands of Al-Qaeda.

But once that is resolved, one way or another, the fall of Syria can destabilize the entire Middle-East.  This thing has many, many tentacles, and I think the world should be far more concerned about it then it would appear to be so far.” 

When asked about gold, Cashin replied:  “It’s certainly beginning to stabilize.  You’ve got to watch how things look economically, away from it.  On the one side, geopolitically, there is a force telling people you might want the protection of gold.

Conversely, if you look at the extraordinarily low yields in Treasuries, there is fear out there of deflation.  So gold is in a bit of a tug-of-war, still, but the continued weakening that it saw over the last several weeks looks like it may be ending.”

Despite the headlines about the Bundesdank and Draghi meeting over the next few days, when asked about reports from a Bundesbank spokesman reiterating the fact that the Germans have not changed their position on bond purchases, and, in fact, that the Germans are still ‘critical’ of them, Cashin responded, “I wouldn’t be surprised to hear that the Germans were in fact resistant, but the market just decided to read the headlines. 

And the headlines from the story you just quoted, it took it from Dow up 105 or 110, to up 220, and that was done in a matter of minutes.  It was responding to another spike in the euro.  The real time bomb here is that large short position in the euro.” 

This is an extremely powerful and timely interview with Art Cashin.  Cashin addresses the major events that are unfolding in Europe (including today), and how they will impacts key markets.  He also discussed gold, oil, stock markets and what KWN listeners should expect next. 

This is an interview KWN readers and listeners globally will not want to miss.  The King World News interview with Art Cashin 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 legendary Art Cashin ($612 billion UBS), Gerald Celente, Don Coxe ($538 billion BMO) and

Eric Sprott are available now.  Also, be sure to listen to the recent line-up of other KWN interviews which include MEP Nigel Farage, Peter Schiff, John Embry, Egon von Greyerz, Bill Fleckenstein and Jean-Marie Eveillard (oversees $50 billion) 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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