Rick Rule – The Big Picture On Gold, Currencies & Key Markets
September 11, 2012
Today Rick Rule told King World News that Europe has, “… a range of insolvent governments. They can’t get anybody else to buy their phony paper, so they buy it themselves. I think the US is in less bad shape, but that’s like saying you are the tallest midget playing basketball.”
Rule, who is now part of Sprott Asset Management, also spoke about the rally in gold, but first, here is what Rule had to say regarding the US dollar breaking down today: “The dollar was viewed as a safe trade, which absolutely mystified me. I keep saying I’m not an economist, but I am a credit analyst and I wouldn’t loan the US government any money. So it doesn’t surprise me to see the dollar breaking down.”
Rick Rule continues:
“I also wouldn’t be surprised to see the dollar rebound in the near-term because you have to look at what it’s competing against. The joke that we’ve been saying at hard money conferences for years is that the dollar is the worst currency in the world, except for all of the others.
So I would expect that a whole basket of currencies would wobble against each other….