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Sunday, April 3, 2011

Weekly KWN Interviews

This week King World News interviews Robin Griffiths, Rob Arnott, Ben Davies and James Turk.  Interesting interviews covering the Japanese economy, Gold/Silver, QE3 and other economic events that you need to keep up with.

Robin Griffiths - Discusses how the Japanese disaster and its effects on the Japanese economy.  Robin believes that the disaster has made the Japanese economy cheap and buying opportunities may be available in 8 to 9 months.  Robin says the inflation adjusted price in Gold is now at $3k per ounce and with the FED constantly printing, it should cause Gold to go towards $8k an ounce.  Robin believes that Silver will accelerate faster than Gold will in the coming years.  Robin believes that the dollars reign as reserve currency will diminish over the  next few years due to its diminishing value.  Robin says markets will be strong through May and June, but will see a replacement sometime after that.

Rob Arnott - Discusses Inflation and how the focus on core inflation excludes (food and energy) what the middle class depends on to survive.  Rob talks about how we've ignored the proper measurements over the past 13 years which has cost us in GDP.  Rob points out that Food and energy has gone up 5-10% (Tim: really higher depending on what your looking at).  Rob says their are multiple camps in QE, but most of the votes are in the QE3 camp right now, but being quiet about it.  Bernanke has pointed out that stocks have gone up since the starting of QE2, but that has not made the economy more healthy (so stopping QE would cause the markets to go down).  Rob thinks that we have a possibility of a Greek style economic crash if we don't get things under control.  Rob continues with more economic conversation which is well worth listening to.

Ben Davies - Discusses price controls which are used to fixed prices of commodities and services at a different level than the free market (preventing prices from rising).  Ben says that usually this doesn't last very long and prices get out of hand faster than you'd expect.  Ben points out that suppressing prices ultimately cause shortages in supply (and the supply/demand ratio is distorted).  Ben comes up with a few examples of price controls that help illustrate this point very well.  Ben points out that the Gold market is a clear example of price controls creating shortages in the market.  Ben currently is more focused on the upside of Gold and sees Silver coming in for a short period of time.  Ben is in the QE3 events due to the recent event in the world (being a very large event) causing gold to go higher.  Be continues to discuss geopolitical issues and oil, which is valuable information.  

James Turk - Discusses backwardation in silver and how we've gone from $27 to over $37 and it is still in backwardation.  James says if Gold goes into backwardation then it is over for the dollar.  James highlights that it is staggering that we are still in backwardation on Silver at these prices.  James thinks there could be a break out in the Euro above 1.42.  James believes we will break through 1440 in Gold pretty soon and then it should go much higher, it cannot be suppressed forever. 

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