Eric King:  “Felix, you’ve had a chance to look at how things evolve globally each year as we go through this cycle.  How do you see the end game playing out at this point?  How do you think this will end?  Meaning, if the world doesn’t solve its situation in a conventional manner, as you said earlier, will we see a greater degree of chaos than the world witnessed in late 1979, early 1980?”

Zulauf:  “At some point in time we have to get rid of the debt that we have.  Obviously central banks are trying to do that by financial repression.  The consensus among the investment community is that financial repression will work.  I’m not so sure.

Financial repression means that they put interest rates below the inflation rate, and by doing that the debt-to-GDP level of the different segments in an economy, the households, governments, etc., drops down over time.  Drops down to more reasonable and manageable levels.  I’m not sure that can be achieved....

Continue reading the Felix Zulauf interview below...


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“I’m not sure that policy will be successful, but for some more years they will try that.  If it doesn’t work, then we will go into other things (such as) currency reforms, confiscation, special taxes on the wealthy or whatever.

It is going to be a chapter that we have not seen in modern times in the industrialized world.  We have seen it in countries like Brazil, Argentina, Venezuela, Latin America, etc., but we could see it in some industrialized countries.  It’s beyond my imagination to tell you exactly what will happen.”

Zulauf also added: “...It’s a top building process that we are in.  If the markets do not correct as I expect some time in spring, if the markets would continue to go up, and not be confirmed by internal technicals, then it gets very, very dangerous.

Then we would resemble much more a market situation that has some similarities to 1987 ... I’m just saying we are in dangerous territory, and people should be aware of that and take precautionary steps.”

Here is a very small portion of what Zulauf had to say regarding gold:  “In 2011 we had a buying climax when gold moved very quickly from $1,500 to $1,900.  That marked an end of one stage.

I said, around that time, that we would go through a lengthy correction and congestion period, which we have done.  We went from high optimism in the gold market to pessimism.  Actually, the sentiment numbers you see in the gold market today are about as depressed as when gold declined in 2008 from over $1,000 to $700.

Corrections are to improve the technical situation of a market, and you go from high optimism to deep pessimism.  That’s what has happened in the gold market ... They (various countries) constantly debase the currency which is bullish for the gold price.  Therefore, the fundamentals remain fully intact for gold.

What was lacked was the improved technical situation of the gold market, and I think we are in the later stages of this cyclical correction.  Probably this will end some time in the next two months or so, and then we will rally again and go to new (all-time) highs.”

In his audio interview, Felix Zulauf goes into great detail about what investors should expect as the system implodes and, more importantly, how they can protect themselves.  The legendary money manager and two decade Barron’s Roundtable panelist also discusses central planners, systemic collapse, what investors should be doing with their money right now and how they can protect themselves going forward, gold, gold repatriation and much more.  The extraordinary KWN audio interview with Felix Zulauf is available now and you can listen to it by CLICKING HERE. 

© 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 interviews with Felix Zulauf, John Hathaway, Gerald Celente and Eric Sprott are available now.  Also, be sure to listen to the other recent KWN interviews which included Art Cashin, Michael Pento, MEP Nigel Farage, Michael Belkin, James Dines, William Kaye, John Embry, Jean-Marie Eveillard and Rick Rule by CLICKING HERE.

Eric King

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© 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.

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