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BookmarkOn the heels of the Cypriot Finance Minister quitting and continued volatility in gold, today acclaimed money manager Stephen Leeb told King World News the West is much closer to collapse than it was even three weeks ago, and gold is being sold to mask the desperate situation the West faces going forward. Here is what Leeb had to say in this powerful interview: “Eric, the thing to remember right now, gold is the barometer of what is wrong with the West. We can look at Cyprus, Spain, Italy, and say the West is sick. But you put the thermometer in your mouth and you see 98.6 (degrees, normal temperature), and that’s because someone is putting cold water on the thermometer right now in the form of selling gold.”
Stephen Leeb continues:
“That can only continue for a certain period of time. After that period of time you will have what is known as the greatest short squeeze the world has ever seen (in gold). It could be that China suddenly decides they have enough gold and come out and say, ‘The yuan is partially backed by gold.’
It could be any number of things but that catalyst is inevitable, it’s going to happen. I see us closer to major changes. A collapse of the current situation….
“Yes, much closer to collapse today than it was two or three weeks ago before Cyprus.
A lot of people aren’t buying this continued, quiet growth in Germany, and the US. Turkey, for example, is importing increased amounts of gold. You are going to see other countries outside of the eurozone importing more and more gold.
Bear in mind, it’s obviously in the interest of the leading economies in the West to keep gold under control because if gold suddenly shot-up here, what it would tell you is that we are on the verge of collapse. There is no doubt about that at all.
If people see gold go up to $1,800, $1,900, which in my opinion is nothing compared to what you are going to see, they are going to say, ‘Something is really wrong with the West.’ That is one reason why you are going to see selling and pressure in gold.
It’s kind of remarkable you haven’t seen gold break below those lows. They are holding, and the reason they are holding is you do have countries out there that see the picture from a much broader term (perspective). I’m talking about China, India, and all of these countries that are accumulating gold. They see and they get it. The West gets it too. They don’t want this metal to go up. A barometer for what’s wrong in the world right now, and it’s always been the best and most accurate barometer, is gold.
So, you have this hideous situation in Cyprus, you have more evidence that austerity is causing massive pain to people, pain where they can’t get medicine in Greece, pain where they can’t get food or gas in Cyprus, etc, yet the barometer of pain is being kept artificially low (gold). That can’t stand for very much longer.”
