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Central Planners Are Making Desperate Maneuvers Right Now
With investors around the world are wondering which direction markets will head next, today King World News interviewed 25 year veteran Caesar Bryan. Gabelli & Company has over $31 billion under management and Caesar Bryan has managed the gold fund since its inception in 1994. Here is what Ceasar had to say regarding what is happening around the globe: “Since we last spoke, Eric, there was the summit between the countries in the eurozone. They agreed to separate the bank debt from the sovereign debt, but that doesn’t fix the problem because the debt is still there. There are two issues, and the first one is too much debt and who is going to take the losses?”
Caesar Bryan continues:
“The second is the issue of competitiveness in some of the peripheral countries in the eurozone. That issue also remains unsolved. It was interesting because yesterday we had a number of central banks make moves. As an example, the ECB cut interest rates and they also lowered their deposit rate to zero.
So it was an easing move, but it will not have an impact on their economy, which is already slipping into recession in Europe. The Bank of England also raised their asset purchase program in an effort to lift the UK economy. They are happy to cheapen sterling....
Continue reading the Caesar Bryan interview below...
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“The Chinese also cut interest rates, and interestingly, Denmark reduced their deposit rate to a negative .2%. This was an attempt by Denmark to weaken their currency. Money had been moving into the Danish krone, and they, like the Swiss authorities, are trying to prevent that.
All of these moves are positive for gold and yet gold declined early yesterday because the euro weakened. So the euro price of gold at roughly 1,300 euros looks terrific. But the bigger picture, Eric, and what people need to remember is that paper currencies are going to be devalued against gold.
The gold story is not really a story about quantitative easing, and the maneuvers of the central banks over the last five years. The gold story really had its beginning in 1971 when the world came off what were the last vestiges of the gold standard.
What has happened since then is this huge and unprecedented growth of debt. This is what is now coming to the market’s attention. But all of this started way back in the 1970s. Investors have to realize that there has been this extraordinary growth of debt, and it has become apparent that it is unsustainable. The issue is who is going to take the losses?
What we contend is that central banks are going to be asked to take the losses, so in the end these losses will be socialized. But the beneficiary will be those holding real assets, and gold is the ultimate real asset.”
© 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, Dr. Stephen Leeb, Rick Rule and Eric Sprott are available now. Also, be sure to listen to this week’s line-up of other KWN interviews which include Art Cashin ($612 billion UBS) Jean-Marie Eveillard (oversees $50 billion), Don Coxe ($538 billion BMO) and Ben Davies by CLICKING HERE.
Eric King
© 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 6, 2012
