This Is A Moment In Time That’s Never Been Seen Before

by kingworldnews.com

“Greece is a serial bailout, restructuring, can-kick, and I guess this is going to continue as long as the riots don’t get worse. Maybe eventually Greece will get ejected from the euro. The question (in Europe) is, is Draghi going to get serious about the OMT or not?”

“My suspicion is he is going to. They are going to use the central bank there to make sure the euro doesn’t fracture, in the same way Greenspan and Bernanke have used the printing press to make sure that the United States financial markets don’t collapse.

I suspect Europe will muddle through as long as Draghi is willing to keep buying the government debt and keep the whole process moving.
“The (US) fiscal cliff, near as I can tell, is mostly just a boatload of tax hikes and some proposed spending cuts. But at the end of the day, there is a mood of class warfare in the country which is being fomented by the Democratic Party.
Part of the reason for the disparity of wealth in the country is because the policies of the Federal Reserve have helped eviscerate the middle class, both through losing money in bubbles and inflation, and the misallocation of capital and the ensuing destruction of jobs. So the Fed’s policies have hammered the middle class.

If you like the last four years you are going to love the next four year because it’s going to be more of the same, only worse. Some exit polls showed that about 40% of the people felt that rising prices were the number one problem we face.
I think that’s going to become a bigger focus in the next few years. So we are going to have more of a recognition that prices have risen and are going to continue to rise, which will affect inflation psychology. The economy is going to sputter for all of the same reasons it has.
Therefore, I think the next few years are not going to be very good in the economy. So I think it will be a subdued version of what we saw in the 1970s. Inflation won’t be as high, but it will be higher than GDP growth. We will have a period of stagflation and it might actually come to be recognized as such.
At the margin, incrementally, the world is starting to realize that this is a moment in time that’s never been seen before. The world’s reserve currency is confetti, and the currencies of all the major countries are all confetti. They are not linked to anything.
We have never seen a moment in time in the world where we are on a confetti standard across the board and I think people are starting to realize what that means. These currencies have no value. Believe it or not, the gold bull market is now 12 years old and it’s still early for people understanding what all this means.”