We Are Within Months of This Crisis Blowing Wide Open
June 13, 2012
Four-decade veteran John Hathaway told King World News, “we are within months … from this thing blowing wide open. When that happens, money will look to find whatever it can in order to participate.” The prolific manager of the Tocqueville Gold Fund also said, “I think at that stage you are going to see gold go ballistic because it will be an admission of failure on the part of policymakers.” Here is what Hathaway had to say about the ongoing crisis: “All of the political leaders and policymakers are frantically trying to put their fingers in the dyke. The euro is on its last legs. It’s very late in the game to expect anything like the coordinated action that would be necessary to restore confidence. People are moving to the exits.”
John Hathaway continues:
“You’ve got slow motion bank runs taking place. People who see this and understand it are moving into gold. You’ve got rot in the periphery (of Europe) that’s spreading to the core. The core is Germany and ultimately the United States.
The idea that somehow the dollar is protected by some firewall is ridiculous. They are (all) basically fiat currencies, and I don’t think this stops with the euro. This attack is ultimately going to affect the dollar, and it will eventually be reflected in the dollar/gold price.
They (central planners) are buying time right now with the euro. It’s clear to me that policymakers are resorting to prescriptions in order to deal with economic sluggishness, but they are using very shop-worn Keynesian monetary stimulus applications.
They are so mentally bankrupt in their thought process, that it’s clear to me they don’t understand what’s happening….