Richard Russell - Gold & Silver Being Bought Up By Billionaires

With gold remaining in a trading range below the $1,700 level, the Godfather of newsletter writers, Richard Russell, had this to say about what is happening with regards to gold, silver, stocks, inflation and the Fed: “Technically, both the US and Europe are dead broke, and their GDPs would have to run wild on the upside to make the debt to GDP ratio more acceptable. How will it all end? It will end with the central banks churning out junk fiat inflation-adjusted money in order to service the debts. Meanwhile, the precious metals and other tangibles are being bought up by millionaires and billionaires as they await their turns to feast on the remnants.”

Richard Russell continues:


“The fact is that the Fed is happy with 2% inflation each and every year. Compound 2% inflation year after year, and you know what's happening? -- you've effectively wiped out the middle class. Between inflation, stagnant wages, higher taxes, and no jobs, the middle class has hit the brick wall like a fresh egg hitting the trunk of a redwood tree.

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Pento - Ultimate Collapse & Real Reason Interest Rates Rising

Today Michael Pento accused the mainstream media of misleading the public once again. Pento, who founded Pento Portfolio Strategies, writes exclusively for King World News about the ultimate collapse and the real reason interest rates are rising: “The prevailing notion among the mainstream media and economists is that interest rates are rising because of improving economic growth. But like many of the readily accepted tenets of today’s world of popular finance, this too has its basis in fallacy.”

Michael Pento continues:


“Interest rates recently increased by nearly 40 basis points on the 10-year note since the first week of March and that is being offered as proof that the economy has healed and GDP growth is about to accelerate. But in truth the recent spike in Treasury bond yields is only the result of a temporary ebbing in the fear trade that brought about panic selling in Euro denominated debt, which had previously caused U.S. Treasury prices to soar.

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Art Cashin - Expect Chaos in Markets if War with Iran Begins

Today Art Cashin told King World News many people are concerned about history repeating itself in the form of sudden and sharp inflation. Cashin, who is Director of Floor Operations for UBS, (which has $612 billion under management), also said the Dow could see a 1,000 point move in a day if war breaks out with Iran. Here is what Art Cashin had to say: “I think what people are concerned about is there is an enormous amount of tinder, in that the LTRO in Europe put a lot of assets in the hands of banks who have temporarily parked it at the ECB. The same thing is true here in the United States.”

Art Cashin continues:


“The balance sheets of the various central banks have nearly tripled. Now, in history, that has often led to a rather sudden and sharp inflation. That’s what people are concerned about, will history repeat itself?

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Silver, Financial Repression And Economic Recovery

Ryan Jordan

Earlier this week, noted economist Carmen Reinhart posited once again that western economies are enduring another period of financial repression. In the simplest sense, financial repression means savers are subjected to additional taxation in the form of negative real interest rates (meaning you are losing money on your bank deposits after accounting for inflation.) The last period of negative real interest rates occurred in the wake of huge public sector deficits after World War II. In Reinhart's opinion, government-mandated negative real interest rates persisted from 1945 to 1980. This was a thirty-five year war on savers.

I found the timing of this article interesting, since so many people in the financial world are touting some sort of economic recovery, especially here in the United States. I have to admit things are going well on Wall Street: broader stock indexes have, in many cases, finally broken above levels not seen since before the collapse of Lehman in 2008. I would point out that in a qualitative sense, the word "recovery" feels out of place in a country where I doubt we can return to the world before 2007. Still, I am a good sport and willing to play along with the idea that the economy is on some sort of a rebound. (At least until the end of the world in December, mind you.)

So what does this "recovery" mean for people looking for places to put their hard earned savings? After all, the appearance of Reinhart's article on financial repression sort of throws a bit of cold water on anyone who equates recovery with the positive real rates of the 1980s and 1990s. Reinhart is implying that the heavy hands of the state and central banks are fiddling with the scales, manipulating the truth about the damage inflation can do to real economic growth, as well as to real investment returns.

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Pento - Soaring Oil, Inflation and Households Soaked in Debt

There has been a great deal of hype in the mainstream media stating the US economy is recovering. Pento, who founded Pento Portfolio Strategies, told King World News the truth is the US economy is not recovering and global readers should expect a surge in inflation. This is what Pento had to say: “Since the US economy is so intertwined with the global economy, I decided to look at claims by the mainstream media that the US economy is strengthening. The conclusion, please don’t believe the hype that the American economy is healing. While it is true that some data is showing improvement, the true fundamentals of the economy continue to erode.”

Michael Pento continues:


“America’s trade deficit hit $52.6 billion in January. That’s the highest level since October of 2008 and is clear evidence that we have fully reverted back to our under production, under saving and overconsumption habits with alacrity.

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John Williams: Inflation Effect - Tough to Ignore or Contain

John Williams just warned that significant inflation will feed into the global system because of rising oil prices and the Fed’s policy to debase the dollar. Williams, who founded ShadowStats, also warned the US dollar will take a major hit because of global “dollar dumping.” Here is what Williams had to say about the situation: “With oil and gasoline prices pressured by market concerns over Middle Eastern political stability, monthly consumer inflation jumped in February and stabilized in the three-plus percentage range on a year-to-year basis.”

John Williams continues:


“The current level of inflation, however, stands where it is due primarily to the effects of the Federal Reserve’s efforts to debase the dollar, which, in turn, spiked global oil prices into the $100 per barrel range. The effects of the dollar-debasement and oil-price-spiking policies not only had direct inflationary impact on energy-related prices, but also—in the period following QE2—had an accelerating upside impact on inflation throughout the broad economy, as indicated by rising “core” inflation (net of food and energy inflation).

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Fitzwilson: Hyper-Devaluation, the Electronic Age & Gold

Today 40 year market veteran, Robert Fitzwilson, discussed the electronic age and how it will impact inflation as well as the eventual hyperinflation. He also believes that we have lived through an age when we talked in terms of millions and then billions, then trillions and that quadrillions cannot be far behind. Robert is the founder of The Portola Group, one of the premier boutique firms in the Unites States, and today King World News was given exclusive distribution rights to the following piece:

“Currency & Long-Term Wealth Preservation”


By Robert Fitzwilson, President & Founder of The Portola Group

March 16 (King World News) - For most of us alive today, the currency in our wallets has always functioned as a medium of exchange. It will do so going forward. Where one could find fault with it would be as a form of wealth preservation.


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Farage - Yes, Germany & Switzerland Want Their Gold Back

With Europe desperately trying to stabilize the Greek crisis, today Nigel Farage told King World News that despite European leaders pretending everything is okay, there is total denial and the ceiling is falling in. He also said the Germans and Swiss want their gold back. But first, here is what Farage had to say about the ongoing crisis in Greece: “It was very odd, I mean we had Mr. Van Rompuy, President of the European Council and Mr. Barroso, the Commission President, in Parliament this morning and it was remarkable. Two speeches from the two big bosses, both saying everything is absolutely wonderful. We have no difficulties at all and the recent Greek agreement has all gone off very smoothly. There is absolutely nothing to worry about.”

Nigel Farage continues:


“Mr. Van Rompuy said the euro crisis had now been through a turning point and everything is going swimmingly. Nothing to worry about chaps, it’s all absolutely fine. I did, in response, take the mickey a little bit and I did allude that I was taking part in some giant, comic farce, where we try to pretend the world is great even though the ceiling is falling in as we’re saying it.

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Pento - Inflation to Rapidly Increase Around the World in 2012

Today Michael Pento told King World News that Europe’s economy is falling off a cliff, along with other parts of the world, as inflation continues to take a toll on global GDP. Pento, who founded Pento Portfolio Strategies, also noted that one of the largest corporations in the world is seeing a global slowdown. This is what Pento had to say about what is taking place: “Back in early 2011, I was one of the few economists to warn that global GDP growth would slow dramatically in the near future and that the emerging market economies would not be immune from that upcoming contraction. My prediction was based on the premise that the then incipient sovereign debt crisis in the developed world would cause the export-driven BRIC economies to stall.”

Michael Pento continues:


“We now know that the Japanese economy is contracting, while Europe’s GDP is falling off a cliff. And just last week we received more concrete evidence that emerging market economies are starting to feel the pinch from the developed world’s debt crisis.

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John Williams - Horrendous Implications for Systemic Stability

John Williams just warned that current problems have horrendous implications for the markets. Williams, who founded ShadowStats, also noted that Bernanke continues to pay lip-service regarding inflation-containment. Here is what Williams had to say about the situation: “Recognition of an intensifying double-dip recession as well as an escalating inflation problem remains sporadic. The political system would like to see the issues disappear until after the election; the media does its best to avoid publicizing unhappy economic news; and the financial markets will do their best to avoid recognition of the problems for as long as possible, problems that have horrendous implications for the markets and for systemic stability.”

John Williams continues:


“Until such time as financial-market expectations move to catch up fully with underlying reality, or underlying reality catches up with the markets, reporting generally will continue to show higher-than-expected inflation and weaker-than-expected economic results in the months and year ahead. Increasingly, previously unreported economic weakness should show up in prior-period revisions.”

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Turk - Something Big is About to Happen in Gold & Silver

With gold near $1,770 and silver near $35.50, today King World News interviewed James Turk out of Spain. Turk told King World News the fact that silver is not pulling back is an indication of how strong that market is right now. Here is what Turk had to say about the situation: “This is a great start to the week for the precious metals, Eric. We need to see this kind of strength to make sure both gold and silver follow through in the next few trading days to confirm the big gains from last week where gold climbed 2.9%, while silver soared 6.4%. It is remarkable to see both metals hold their gains with no profit taking. Clearly, traders see something big is about to happen, and so do I.”

James Turk continues:

“In this regard, I have mentioned several times my expectation that once resistance at $35 is taken out, silver will climb to $68-$70 in 2 to 3 months. I still expect that outcome, but of course, only time will tell. I thought it might be tough going for silver in the $35-$36 area, but maybe not based on the strength we are seeing today.

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