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Ing:  “I am watching gold flirting with its 200-day moving average.  This is happening at the same time that the dollar has shown recent weakness by hitting nearly a two-year low.  But against that backdrop -- and this is something we’ve just written about -- here we have the largest money-printing exercise in history, the Dow Jones toying with new highs, bonds near lows, and at the same time we are told that inflation is dead....

Continue reading the John Ing interview below...  


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“So there is a euphoria in markets, and this has created a great deal of complacency.  The common denominator is that debt for Western countries as well as Japan keeps going higher.  So while the mainstream media may claim that we don’t have price inflation, we certainly have debt inflation.

Debt is 100 percent of GDP in the United States.  Obamacare already cost $1 trillion right out of the gate, and we are told it’s going to cost another $6 trillion by 2024.  Well, Obamacare was supposed to be self-funding.  It’s so easy for governments to spend money, incur deficits, and rack up debt, but eventually you hit a wall.

We see this reckless behavior in Japan.  Right after increasing their consumption tax, they are exploring the possibility of another round of quantitative easing.  Of course in Europe we have the contracting economic activity, and on top of that we have the war mongering between Russia and the United States.

Interestingly, Russia’s annexation of Crimea has laid bare the vulnerability of our financial system.  America owes 50 percent of its debt to countries like China, and, yes, Russia as well as Japan.  This is setting the world up for an incredible period of volatility.

I have been saying for some time that the U.S. dollar is the report card on how the world views the U.S. economy, politics, and the United States’ finances.  What’s been happening for some time is that the U.S. dollar has been weakening, and gold, the ultimate currency, has been going up this year.

Even with two flash crashes the gold price has advanced 9 percent so far this year, and the gold stocks have advanced twice as much.  In the mining sector, after everyone pledged to commit to profitability, we saw two large takeovers.  Osisko was taken out by Agnico Eagle and Yamana.  Then we had the mega-merger aborted by Newmont and Barrick. 

The bottom line here is that when you see the gold industry start lusting after reserves in the ground, that is when the big money takes heed.  If the industry is buying its own gold, investors should look to do so as well.”

Ing added:  “What is disturbing among the portfolio managers we talk to is the complacency in global stock markets.  This suggests to me that the stock markets are very vulnerable.  Also of interest is that hedge funds’ gold exposure is now at a 2 1/2-year low.  But I repeat that if the gold industry thinks gold is a good buy down at these levels, whom would you rather trust -- hedge funds or the guys who have been in the gold business for decades?”

IMPORTANT - KWN has an all-star weekend with 3 extraordinary audio interviews being released, and many more written interviews being released today.

© 2014 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 Rick Rule, Dr. Paul Craig Roberts, Gerald Celente, Felix Zulauf, Michael Pento, James Turk, Victor Sperandeo, Dr. Philipa Malmgren, Grant Williams, Dr. Marc Faber, Egon von Greyerz and Art Cashin are available now. Other recent KWN interviews include Eric Sprott and Jim Grant -- to listen CLICK HERE.

Eric King

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