Gold, Russia, China, The United States & Ukraine

With gold near $1,350, and the world worried about war breaking out in Ukraine, today an acclaimed money manager Stephen Leeb, says:

Eric, I’m focused on geopolitical factors and how desperate the West seems to be to keep this world running. Every day that goes by there are more signs of desperation. Putin is giving no sign whatsoever of backing down in Ukraine. It’s very clear that he is going to annex the Crimea.

He will also make a run at other eastern Ukrainian enclaves where there are a lot of Russians. I think the United States and Europe are going to be left holding the bag.

Part of the desperation on the part of the West is because of the fact that Putin has tremendous access to energy resources, whereas the West does and it doesn’t. The costs of fracking are incredibly high, and the public has no idea about the chemicals that really go into fracking. Almost every single one of the chemicals that goes into fracking has a negative health effect.

The reason I am suspicious of the government’s motives with fracking is because this is really our only card left to play. We don’t have any real viable energy resources in the Western world, aside from fracking. We cannot satisfy demand for energy unless we go to extremes.

We don’t have that much clean groundwater, and without question fracking damages the clean underground water supply. All of these chemicals are seeping into the ground and every single one of them is a poisonous carcinogen. So this kind of desperation is not going to work in the long-run.

We are looking at a geopolitical crisis right now where there is no answer — where the West is powerless. There is a tremendous alliance between Russia and China over natural resources. What is not making the headlines is the fact that the president of China just had a long conversation with Merkel, Cameron, and Obama. Did you see that anywhere in the headlines?

I can tell you the nature of that conversation: The president of China warned the West not to start any trouble. He also told them not to slap any sanctions on Russia. Meanwhile, the United States is supporting a Ukrainian regime without legitimacy, that also has extreme Nazi-style support. One of the biggest concentration camps in World War II was right outside of Kiev. How does it make any sense for the West to support these thugs, Eric? The answer is, it doesn’t.

But every day the West is becoming less and less powerful. So how can we rely on the the U.S. dollar to remain as the world’s reserve currency? How can we rely on the euro to be the second most desirable currency in the world? It makes no sense, and people are starting to get this message. This is why gold has bottomed.

The real run in gold, the one that takes us to $10,000, that comes when people realize that ‘the emperor has no clothes.’ Yes, China has problems but they are many steps ahead of us. Russia also has the right idea. Today Russians live much freer than they ever did in the past 400 years.

I have a friend who travels to Russia each year. He is one of the best chess coaches in Russia. He owns property in Russia, and he knows people all over the country who verify that the country is freer today than it has ever been. Putin’s popularity within Russia is also higher than it’s ever been.

So this is why the West is acting out of such desperation. They know the clock is ticking against them and their dominance of the world. But all of the propaganda in the West is to convince the people that the West is still number one. This is not true. The emperor’s clothes are coming off, and the gold market is going to reveal this at some point.

We may have a few more chapters to complete before we see $10,000 gold, but this book will be completed. And when the book is completed, this world will not be recognizable. What we are seeing right now is the last gasp effort on the West’s part to show its dominance.

We are literally witnessing history before our eyes. We are living through a point of inflection and the West is desperate to hold on to what it has but we won’t be able to do it. The bottom line is the move to $10,000 gold will mark a dramatic shift of power from West to East. It will also mark the end of Western dominance altogether.”