Stephen Leeb continues:

“25% unemployment is the kind of unemployment we had during the (Great) Depression.  It surprised me (that the ECB did not take significant action), and it makes me think, what is going on behind the scenes?  My guess is we are putting tremendous pressure on Germany.

Every other country in Europe, including Great Britain, is ready to ease and buy bonds....

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“I think we will provide them (Germany) cover.  If the US is doing it and it is being done in concert with the United States, the Germans have a very credible out.  They are not in a position, like Russia and China, to fight the United States.

They need us for their own physical security, and right now we need them for our own and physical security because if our economy starts to collapse, there is no doubt about it, all of our securities are in jeopardy.  We are not going to allow one country to create that kind of shock which could occur in the West.

I think they (Germany) will relent and I’m going to predict you will see easing before the next Fed meeting, within the next three to four weeks.”

Leeb also added:  “Everything I’m looking at tells me to buy gold.  I don’t see another way out of it.  What I find interesting about today, when I see junior gold’s up and I see gold down 1%, that to me is a pretty meaningful divergence.

You’ve seen this all day.  Gold is now off its lows, but junior gold’s are up.  That’s a very positive divergence because when gold goes down, typically junior’s are the ones that that take it on the chin.  So to see them up (today) is kind of unusual and it suggests that investors are looking for a way to get into the gold market.

As I’ve said before, I think the biggest rally most of us are going to see in our lifetimes will be in the junior gold stocks.  That’s where the gold is and we’re going to need the gold in this world, there is no doubt about it.  You are going to see sensational gains in these stocks.”

Leeb had this to say about legendary value investor Jeremy Grantam: “Jeremy Grantham has turned into a big-time resource bull.  He sees food shortages and he sees water shortages.  He sees them as being critical. 

This is not some extremist talking (Grantham oversees close to $100 billion).  This is a guy that has come to the view of resource shortages over the last 2 or 3 years.  He’s becoming much more vehement about it, saying we could have real catastrophes in the food market, in water, etc., and energy could be right behind.

He’s (Grantham is) a very powerful figure, he’s a very thoughtful figure and he’s very concerned.  He’s close to his mid-70s, he has no axe to grind.  He’s not trying to start a career making bold statements.  He wants to do something to help the world.  He’s warning people about these critical shortages coming up, and creating funds to deal with them.”

© 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.

This is a fantastic interview with Stephen Leeb.  He discusses gold at length as well as what the Fed and the ECB face going forward.  Leeb’s interview is available now and you can listen to it by CLICKING HERE.

Dr. Stephen Leeb: Chairman & Chief Investment Officer of Leeb Capital Management and the

author of “Red Alert: How China's Growing Prosperity Threatens the American Way of Life”

Just released, to order from Amazon CLICK HERE.

The interviews with John Hathaway, 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 this week’s line-up of other KWN interviews which include MEP Nigel Farage, Peter Schiff, and John Embry 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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