Art Cashin – Expect Chaos in Markets if War with Iran Begins
March 23, 2012
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?
For now the money is lying fallow and people are afraid to either lend it or spend it.”
When asked what to look for just ahead of that sharp inflation, Cashin stated, “You would look at the money supply beginning to increase rapidly and you would look at the velocity of money and that will show up in things like the money supply.