Don Coxe – The Global Situation Is Becoming Quite Desperate
July 23, 2012
With stock markets trading in the red around the world, today King World News interviewed 40 year veteran, Don Coxe. Coxe told King World News, “The situation (in Europe) has gone from worse to truly awful in the last week.” He also warned that “… by the end of the summer we might be facing two of the PIIGS going into default.”
Coxe, who is Global Strategy Advisor to BMO ($538 billion in assets), also spoke about the drought, which has been one of the worst in the past century: “It’s going to mean that the winter is going to be a much more chilling experience for the consumers because there is no question that food prices will be, by then, meaningfully higher.”
Coxe also discussed gold, but first, here is what he had to say about the severe drought: “This is one of the three biggest droughts of the last 100 years. In the regions where it is established, it’s been brutal. Those farmers who do not have irrigation equipment, in most cases, are just going to have to plow their crops under.”
“There is going to be very little impact on inflation accept positive near-term because what they are doing is slaughtering pigs and cattle because they can’t afford to feed them. So we are going to get a reduction in food inflation near-term.
But over the longer-term what this is going to mean is much more food inflation, but it won’t start showing up until well after the barbecue season. It’s going to mean that the winter is going to be a much more chilling experience for the consumers because there is no question that food prices will be, by then, meaningfully higher.
And they are going to stay that way….