Chinese To Increase Gold & Silver Storage A Staggering 180%
January 12, 2013
Today acclaimed money manager Stephen Leeb told King World News the West is becoming even more desperate as the Chinese are going to increase storage a staggering 180% this year for gold, silver and other metals. Leeb continues to believe that when the Chinese eventually have gold underlying their currency the game is over. Here is what Leeb had to say: “I’m focused on this battle between the West and the East right now, and the Basel III situation. The Basel III ratios that discuss liquidity ratios the BIS want the banks to maintain so they can survive a bank run are utterly baffling. The puzzling thing was what they said banks could hold in the event of a run on the banks or a liquidity squeeze.”
Stephen Leeb continues:
“The last time we had a run on the banks was in 2008 when liquidity became a major issue. In 2008, companies like GE were really having trouble turning over their commercial paper, so this was impacting everybody. The first of these Basel III requirements say that you can hold equities or BBB- bonds. Even with a haircut of 50%, this is ludicrous. Who is going to take a BBB- bond as satisfaction for liquidity in a true liquidity crunch?
What was left out was gold. Gold hold up well during the entire crisis. It looked like it had a normal correction during that period. It didn’t look like GE, which crashed and burned….