Rick Rule – Gold, Silver, Oil, Global Turmoil & Quiet Markets
KingWorldNews.com
March 28, 2012
With gold, silver and oil hanging on to recent gains, today King World News interviewed Rick Rule, CEO of Sprott USA. Rule told KWN to expect that we are going to see a dramatic increase in volatility in global markets going forward. Rule discussed gold, silver and oil, but first, here is what he had to say about quiet markets:“You know, Eric, it’s amazing, given all of the turmoil in the world, how quiet markets are. My suspicion is the markets have been quieted by a huge blanket of liquidity put forward by the ECB and the Federal Reserve.”
Rick Rule continues:
“There is nothing that calms people down as much as liquidity, despite the fact that so much of that liquidity is counterfeit. As we’ve talked about before, we have a situation now where governments, backed by consumers, have declared a war on savers.
The money you receive when you put money in the bank is nowhere near the amount of money that’s required to compensate you for inflation. As a consequence, people who would normally be savers, have been forced to put money into various markets that are substantially more risky.
The quiet we see in these markets, in the face of all kinds of global risk, is simply a function of liquidity. Ambrose Bierce, famously described the root word of confidence as being a ‘con.’ When people finally realize that a lot of this liquidity is in fact a con, that it’s counterfeiting, the quiet market conditions we’ve been enjoying so far will give way to sets of circumstances that are anything but quiet.
It’s interesting to note that on the bullish side, some of this liquidity has manifested itself in an estimated $8 trillion in cash in private hands in the US. This cash is looking for something to invest in….
The Rest…HERE
