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Art Cashin continues:
“The other one in which the markets go up and down, but don’t make any real progress. An example of that is the period from 1966 to 1982, where you started at about 800 on the Dow, and ended at about 800 on the Dow, having gone to 1,000 several times, having gone to 500 several times.
So with that as the backdrop, the current 17.6 year cycle says we’ve got, probably, another 6 years to go. We (started this cycle) in February of 2000. If the economy is going to mirror the market, in some way, then for these people to get back on their feet, we may not be looking at months, we may well be looking at years, and several of them at that.”
When asked about discussion beginning to surface about a move to the gold standard, Cashin replied, “I think it would be an extraordinarily cold shower. I do know it is being discussed. There may be half steps that they can look at.
The most disastrous thing economically that happened in this country, happened in August of 1971, when they came off the gold exchange standard, whereby foreign governments and others could come in and present dollars and request gold.
When they went off that (the gold standard) there was no more discipline or control. That is what led to the huge inflation we saw in the 70s, and gave us a very spotty market. Volcker managed to wring most of that inflation out, very painfully. Now we are liquidating the debt of the housing bubble, and even some remaining debt from the dot com bubble.
These are difficult times. They’ve certainly proved that we need more discipline. I’m not sure that the leadership is alert enough to be able to implement the gold standard again, but they should really consider, at least, returning to something like the gold exchange standard.”
Cashin also warned: “This (Syria) could turn into a very ugly Lebanon, very quickly, and thereby destabilize the entire Middle-East. And I don’t think protection against that is priced anywhere in these markets, with the possible exception of the premium price for oil.”
This is an extremely powerful and timely interview with Art Cashin. Cashin spoke about the ongoing crisis in Europe, problems facing the US, Bernanke, as well as other central planners and what they are up to, the gold standard, geopolitical problems and more. He also discussed oil, global stock markets and what KWN listeners should expect going forward.
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 Egon von Greyerz, Art Cashin (UBS $612 billion), Agnico CEO Sean Boyd, John Hathaway and Eric Sprott are available now. Also, be sure to listen to last week’s line-up of other KWN interviews which included Jean-Marie Eveillard, John Mauldin, Gerald Celente and Ben Davies by CLICKING HERE.
Eric King
Art Cashin - The Most Disastrous Economic Event In US History
Today 50 year veteran Art Cashin shocked King World News by speaking about the most disastrous economic event in the history of the United States. Cashin said, “The most disastrous thing economically that happened in this country, happened in August of 1971, when they came off the gold exchange standard.”
Cashin, who is Director of Floor Operations for UBS, which has $612 billion under management, also warned, “I’m not sure that the leadership is alert enough to be able to implement the gold standard again, but they should really consider, at least, returning to something like the gold exchange standard.”
But first, when asked about how long and brutal this cycle is going to be for the disappearing middle-class and people who are suffering around the world, Cashin responded, “We’ve got a couple of things going here. In the stock market, traders think of something called the 17.6 year cycle. The feeling on Wall Street is that you go through these 17.6 year cycles, where you have a ‘fat’ cycle, where you can pick almost any stock you want and it will go up.”
© 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.
August 31, 2012
