Today King World News is highlighting a piece by one of the greats which discusses the incredible chaos we are seeing in the markets and urges people to “BUY AS MUCH GOLD AS YOU CAN NOW.” Below is the powerful piece which all KWN readers around the world must read.
By Art Cashin Director of Floor Operations at UBS
October 31 (King World News) – “Overnight And Overseas – The Bank of Japan has blown the lid off markets. Here's what our pal, Peter Boockvar, over at the Lindsey Group wrote in his note this morning:
Not willing to admit defeat on his growth and inflation goals and apparently not happy with lower oil prices, Kuroda and 4 other members of the BoJ (4 dissented) decided to go even further with the same policy that was providing him results that he wasn’t happy with. So, instead of expanding the monetary base by 60-70T yen, the BoJ will now do so by 80T yen (an increase of about $90b-$180b). Kuroda in his press conference gave his own Mario Draghi call to arms by saying “we will do whatever it takes to achieve our price target.” OPEC (especially Venezuela) and the US oil shale industry should be high fiving as Kuroda said “on the price front, somewhat weak developments in demand following the consumption tax hike and a substantial decline in oil prices have been exerting downward pressure recently.” The BoJ will also extend the maturities of their JGB holdings (about 7-10 years from 7 years) and will also buy more REITS and ETF’s alongside the expected increase in stock purchases from the Japanese government’s pension fund. Gold is selling off in the kneejerk reaction to the strong $ and very weak yen but I say to all those living in Japan holding your life savings in yen, BUY AS MUCH GOLD AS YOU CAN NOW because it will be the only way to save yourself from the collapse of the yen.
The results are jaw-dropping. Tokyo closed up 4.85% (the equivalent of 825 Dow points). Other Asian markets were up between 1% and 2%.
In Europe, markets are also up between 1% and 2%.
Domestically, the dollar is strong and as Peter noted, gold got walloped trading down to $1175. The ten year is flat and futures project an opening pop in the Dow of 180 points.
Seasonal Patterns – We have been harping all week that the last four days of October have a history as the strongest four consecutive days of the year. This year it looks like they really lived up to it.
Consensus – BOJ bounce may take Dow to new highs. The treats came early this Halloween. Nevertheless, stay very, very nimble. Have a Happy and a Safe Halloween.” KWN will be releasing interviews with billionaire Eric Sprott and Andrew Maguire all day today.
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IMPORTANT – KWN has many more interviews being released today.
The audio interviews with Bill Fleckenstein, Rick Santelli, Rick Rule, Michael Pento, Paul Craig Roberts, Andrew Huszar, Andrew Maguire, MEP Nigel Farage, John Mauldin, Egon von Greyerz, Michael Belkin, and Marc Faber are available now. Other recent KWN interviews include Jim Grant and Felix Zulauf — to listen CLICK HERE.
