July 24, 2012
With tremendous volatility in global stock markets, the US dollar breaking to fresh two year highs, and gold remaining firm, today King World News interviewed one of the wealthiest and most street-smart pros in the business, Rick Rule. Rule told KWN, “… we are now seeing what looks to be the extremely supportive and bullish return of the ‘fear trade’ in gold.”
Rule, who is now part of Sprott Asset Management, discussed the enormous problems facing Europe and the US. He also spoke about gold and increasing acquisitions in the mining sector, but first, here is what he had to say about the problems the West faces: “You know, Eric, it seems to me that one of the lessons that’s continually reinforced is that our political and business leadership, around the world, are so concerned about getting through the next month or three months that they make a fundamental economic mistake.”
Rick Rule continues:
“They are trying to deal with this solvency crisis by means of liquidity. We don’t have a liquidity crisis. The banks are full of short-term money. The political elite is so busy trying to avoid the set of circumstances that occurred in 2008, that they aren’t spending sufficient time dealing with the real problem.
One thing KWN readers can count on going forward is chaos and volatility. We have tremendous problems in Europe, particularly in the banking system. On the US side we are already seeing municipal bankruptcies. Readers need to pay attention and be prepared for the chaos that is in front of us….