Eric King:  “Art, you’ve been doing this for 50 years, and you’ve done a great many things on Wall Street.  But you also traded gold, and I always ask you about gold.”

Cashin:  “Well, it (gold) is under some pressure.  And while I am far from being a conspiracy theorist, I could see where some of the people involved in that asset class would be concerned because we’ve had several incidences of very large sales.

And they all seem to come at approximately the same time in the relatively early morning in New York, usually before the stock market has opened.  The question there is, why would you suddenly dump a large amount of gold?  Why wouldn’t you try to piecemeal it out over the (course of the) day?

So, if that happens once it could be an accident of technology, or it could be a simple error.  But when it happens 5 times over a period of months, it does raise questions.  Is it being done purposefully?  Is somebody trying to send a message?  Is somebody trying to influence the market?

We don’t have enough details, but as I say, as a guy who doesn’t ordinarily believe in conspiracy theories, I think there should be some further investigation as to who is selling, and why always at that time?”

Eric King:  “Art, is the US in any danger as it continues to push the limits of debt and unfunded liabilities?  Especially, as you said, with the Fed looking to get out of the business of financing the United States government, and the Chinese wanting to walk away (as well), who is going to fund us?  What are we looking at here?”

Cashin:  “We are clearly looking at a very difficult time ahead.  The great danger is that you begin to have people doubt the standard value of the US bonds, and possibly of the US dollar.  If they are no longer viewed as a likely safe haven, then that great benefit of being the world’s reserve currency may begin to turn against the US.

For now there is no immediate threat, but the listeners (and readers) should be careful to keep monitoring it.  There are highly flammable objects out there.  It wouldn’t take more than a few sparks (to ignite a fire).  Luckily the sparks have been kept away temporarily.

You’ve got to watch how the government acts, and more importantly, how the markets begin to react to them.  Will the bond market look to the Fed and say, ‘No.  You are in charge no more.  We think we need to extract higher yields.’  And they (bond markets) begin to look for higher yields in Treasuries at the very time when the US Treasury will be needing more money, and have to pay higher interest rates, increasing the deficit even further.  It is a very, very precarious time and you must stay alert and stay wary.”

This is an incredibly powerful and timely interview with Art Cashin where he covers strange happenings in the gold market, as well as many of the great dangers facing the United States and major markets.  The above information was just a small portion of his incredible interview.  The King World News audio interview with Art Cashin is available now and you can listen to it by CLICKING HERE.

IMPORTANT - KWN will be releasing shortly an additional interview with Andrew Maguire.

© 2013 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 audio interviews with Andrew Maguire, Art Cashin, Egon von Greyerz, Bill Fleckenstein, David Stockman, Robin Griffiths, Jim Grant, Gerald Celente, William Kaye, Dr. Paul Craig Roberts, Chris Powell and Eric Sprott are available now. Also, other recent KWN interviews include Marc Faber and Felix Zulauf to listen CLICKING HERE.

Eric King

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