Gold, Silver & The Smart Move By The Chinese In Commodities
October 9, 2012
Today acclaimed money manager Stephen Leeb spoke with King World News about the action in the metals: “You are going to see this (type of volatility). It’s going to be part of the dynamic for some time to come.” Leeb also discussed what the Chinese are doing right now in the commodity markets, and it will surprise KWN readers.
Here is what Leeb had to say: “People are still worried about Europe staying together, Eric. You still have massive unemployment in Spain and Greece, and you have the Germans who are very dependent on being in the eurozone because they are getting the benefits of a very cheap currency.”
“If Germany suddenly exited the eurozone, the German economy economy would fall apart, completely fall apart. By putting their currency with the Greek currency, the Spanish currency, the Italian currency, they end up with a much, much cheaper currency (net). This allows them to export, and this is what has been driving or keeping the Germany economy afloat.
So I think people are kind of missing it a little bit when they say Germany, the Netherlands, and Finland will form some sort of bloc and leave. No way….