Fed To Ease As Fears Continue To Propel Gold & Silver Surge
September 7, 2012
Today acclaimed money manager Stephen Leeb told King World News, “Right now you are seeing fear … This is why you are getting this kind of surge in the gold and silver markets because investors are realizing that policymakers are in trouble.” Leeb also reiterated what he predicted in his last KWN interview, which is that the Fed will ease at its September meeting. It is now looking like he was correct on that prediction.
Here is what Leeb had to say: “Today a rally in gold and silver was sparked when the US reported terrible jobs numbers, and no gains in wages. But we’ve seen lots of gains in energy prices lately, and this move in gold comes on top of a great deal of stimulus. Europe, this week, announced unlimited bond purchases, whatever that means. We do know that means they are going to be buying a lot of bonds.”
Stephen Leeb continues:
“We are going to have to inflate. We are going to have to stimulate, and this means paper currencies are going to be worth less. It means people are going to be in a desperate search to buy things such as gold. This breakout in gold and silver is a big deal because it is further acknowledgement that whatever we are trying to do is not working.
This means we are going to have to pump more and more money into the system. So as I said, the money will become worth less….