This week KWN (King World News) interviews Jim Rickards ( Part II ), Bill Fleckenstein, James Turk, Jean-Marie Eveillard and Art Cashin. This week KWN discusses Gold's play as a currency, cracks showing up in Gold and Silver delivery and the FED. I'll include the link to Jim Rickards Part I in case you missed it.
Jim Rickards ( Part I ) - Discusses how the futures exchange works for Gold and Silver and how if the exchange get massive calls to take delivery to obtain gold or silver, the exchange will declare a timeout and when it is settled, they will cut you a check on the difference (not really gonna get your gold). Jim also says that QE2 isn't really $600 billion it will really be more like $1.2 trillion (mainly cause their is no real end date assigned to it) and that it will not really impact the economy.
Jim Rickards ( Part II ) - Discusses failure of banks whom are holding gold for storage purposes to deliver the recipients/holders gold when asked (in some cases taking months) furthering speculation that banks loaned out gold they did not own (fraud) and now have to re-coup that gold to deliver to the actual owner. Jim further discusses a new currency in the U.S. which would be gold backed/based in the future being an inevitability.
Bill Fleckenstein - Discusses Robert Zoellicks (President of the World Bank) announcing that the dollar needs to be backed by Gold. Bill also advises not to listen to economists and pundits that did not see the credit crisis coming in the first place, as they have no clue to what they are talking about. Bill also says the reason to own gold is because the paper is no good.
James Turk - Discusses additional stories where delivery of metals from banking institutions are not getting delivered in the proper timeframe. In certain cases persons that own the metal and are just paying for storage are waiting for months to get their silver or gold. This raises questions of what the banks did with the gold that makes it unavailable for months.
Jean-Marie Eveillard - Discusses the FEDs actions and how they are widely inflationary in the United States and how it is affecting other countries. Jean-Marie states that the country that holds the privilege of printing money needs to handle that responsibility responsibly. Jean-Marie also mentions what he thinks the FED seeks to achieve, but there are risks. He believes their will be a QE3 to follow on the heels of QE2.
Art Cashin - Discusses China's GDP and how that could be made up and the fact that China will most likely raise rates again. Art also talks about how the stimulus that was introduced did not stimulate a thing as it was a huge wash, due to not being fully thought through. Recent selloffs in bonds are starting to show issues for mortgage rates (causing them to increase), which will reduce lending.
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