Jean-Marie Eveillard continues:

“The distortions were illustrated, in the Weimar Republic days, by the fact that you had to pile bank notes into wheelbarrows in order to buy a loaf of bread.  Inflation, because of the distortions it introduces, ends up paralyzing an economy. 

Incidentally, I remember that (Dr.) Anna Schwartz, before she passed away, objected very strongly to the policies put in place by Bernanke....

Continue reading the Jean-Marie Eveillard interview below...


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Eric King:  “When I interviewed her (Dr. Anna Schwartz), she was objecting very strongly to the policies (being put in place by Bernanke).  She did feel like it was going to lead to runaway inflation, and would ultimately paralyze the economy.  The woman had incredible wisdom.  I think when I interviewed her she was 92 years old at the time.  Bernanke thinks he’s correct in what he is doing, and she thinks he’s wrong.  Who comes out on top there?”

Jean-Marie Eveillard:  “I think she will because Milton Friedman and Anna Schwartz, both of them were extraordinarily honest from an intellectual standpoint.  Incidentally, this led Milton Friedman, towards the end of his life, to say, ‘I thought if you increased the money supply modestly every year everything would be fine.  It would not abolish the business cycle, but it will reduce its amplitude considerably.’

He (Milton Friedman) said, ‘That was based on the assumption that monetary velocity would continue to be stable,’ which it had been between 1950 and 1980.  He said, ‘Beginning in the 1980s, velocity of money was no longer stable, so M1, M2, M3, they are not as meaningful as they used to be.’

So he acknowledged, not exactly a mistake, but the fact that what he was relying upon no longer applied.  And Anna Schwartz was also extraordinarily honest from an intellectual standpoint.  Bernanke, I’m not saying he’s dishonest intellectually, but he’s a mainstream Neo-Keynesian type of economist.  He doesn’t have one (new) idea in his head, it’s extraordinarily conventional thinking.”

Eveillard also added: “What I would say as an investor today, it seems to me that (it is wise to own) the combination of gold bullion and gold mining stocks because they have suffered considerably, some equities, and some cash to take advantage of periods of time when either equities or gold come down in price.”

This was Jean-Marie Eveillard’s best interview ever.  He discussed the crisis in Europe, the global economy, the US, gold, runaway inflation and much more. The extraordinary KWN interview with Jean-Marie Eveillard 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.

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The interviews with Eric Sprott, Jean-Marie Eveillard, John Mauldin, Gerald Celente and Ben Davies are available now.  Also, be sure to listen to last week’s line-up of other KWN interviews which included Rick Rule, Egon von Greyerz, Bill Fleckenstein, Dr. Keith Barron, Nigel Farage, Peter Schiff and John Embry by CLICKING HERE.

Eric King

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