Leeb – We Will Now See a Gold Standard Imposed in Europe
May 9, 2012
With stocks trading lower, along with gold and silver, today King World News interviewed acclaimed money manager Stephen Leeb, Chairman & Chief Investment Officer of Leeb Capital Management. Leeb told KWN we will see a gold standard imposed on Europe. Leeb also said the Chinese will move to back the yuan with gold. Here is what Leeb had to say about the situation: “Gold is reacting to what’s going on in Europe. It’s the last resort of liquidity for a lot of people. It’s been the best performing major asset over the last 12 years. You have a lot of chaos in Europe an no one knows what’s happening, so there has been a lot of reflex selling of gold.”
Stephen Leeb continues:
“Gold has been a bit stronger than I thought it would be considering the danger of a euro breakup is accelerating. I don’t think there’s any chance the euro holds together under its current form. Unemployment among the young in Greece is about 50%. That can’t stand, it just can’t.
These politicians can’t do this forever. People are not going to tolerate starvation. Sooner or later the politicians are going to have to respond. This means less austerity and more growth, and the end of German hegemony in Europe.
This looks similar to the end of World War I. Once the euro goes, it will be very much like the end of the war….