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Sunday, March 13, 2011

Weekly King World News Interviews

This week King World News interviews John Embry, Jim Sinclair, Rob McEwen & Jim Rickards.  Great conversations on Gold/Silver, Bonds, QEIII, Economic fundamentals and the Dollar.  QE continuance is a major factor of unrest in the currencies, getting these experts thesis as to why QE will continue is invaluable information.  Jim Rickards gives a "Must Listen" interview about QE and how it can actually sustain itself now without requiring more QE beyond June (thus creating stealth QE).

John Embry - Discusses how the paper market for Gold has always dominated the physical buying, but now he sees the opposite happening.  John says the dollar will fall pretty far against real assets, but not sure how much vs the other currencies, mainly as the other countries will sell their currency to match the dollar as much as possible.  John believes that silver and gold are being sourced out of the ETF's when it gets in a pinch on supply.  John points out that central bankers are clearly buyers of gold and silver as well as China as importation into China of gold and silver has risen.  Great information from John on Gold/Silver and the dollar.

Jim Sinclair - Says gold will trade at 1500/1650 and the violence in gold and silver will continue if not rise. Jim believes that the underlying fundamentals in Gold has never been stronger as market fundamentals are extremely weak.  He believes QEIII, QEIV and so on will happen because we don't have much choice.  Jim believes that the dollar and long bond market are tied together, nobody wants to buy our bonds and the dollar is going to be wild but mostly to the downside.  Jim says QEIII will happen because the recovery is too weak and the termination of QE would cause the equity markets to take a dive and that our future is to become a banana republic.  Jim comments on Bill Gross' comments on bonds and says the only buyer of U.S. Bonds will be the FED through QE.  Jim says that derivatives will eventually destroy our economy as it has done so much damage to date.  Great information from Jim on the economy, metals, unrest and equities.  

Rob McEwen - Discusses the cavalier attitude about risk in their wealth/investments, as there seems to be a belief that the Government will make it all good.   Rob talks about how the world is recognizing that the dollar is weakening and not seen as a safe haven, but some still have an a belief that it can not totally debase.  Rob says that market for gold is still only around 2-3% and if it doubles or triples it will cause the price of those metals to go a lot higher.  He mentions how the Chinese government was advising their citizens to take their U.S. Dollar holdings and put them into Gold and Silver.  Rob provides additional information on Gold miners (Major and Minor) as well as current discoveries.

Jim Rickards - Discusses QE and how it must continue on after June, yet the FED is saying it won't continue beyond June 30th.  Jim says that stock prices have been held up by QE and if we were to remove it then the stock market would crash.  Jim says the official stance by the FED for now that they will continue.  Jim points out that the FED deals in STOCKS (the size of the balance sheet) and FLOWS
(the incremental purchases under QE).  Jim says "The FED's balance sheet is so large that the stock is slow large that it has become the flow".  This is an interesting statement as he goes on to point out that the FED could stop QE in June and as its securities start maturing, they could take this money and continue to pump the economy (or monetize) with it, thereby creating perpetual QE.  The FED's definition of QE is expanding the balance sheet, Jim thinks they have expanded it so much that they can keep QE going without expanding the balance sheet anymore, just by using the proceeds of the maturing securities.  Jim goes on with an example of how this would be done, thus creating stealth QE and misleading the people.  This is must listen information from Jim, I encourage you to listen to it in its entirety.

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