Serpo
7th December 2011, 06:31 PM
With continued fears surrounding financial system stability, today King World News interviewed James Turk out of London to get his take on the situation. When asked about the ongoing crisis, Turk responded, “You know I have been traveling around Europe quite a bit and there is one common trait, regardless which country I am in, people are really frightened about the possibility of a collapse of the euro. Money continues to move out of the European banking system, which explains why central banks stepped in with some money printing last week.”
“The story goes that a large French bank could not obtain funding and was on the verge of collapse. When a depositor withdraws money from a bank, the bank has to turn to other sources of funding or reduce its assets. Given the nervousness about insolvency concerns at many banks today, banks have few funding alternatives. Consequently, last week’s stop gap measure by the central banks is probably going to be short-lived.
Things aren’t any better on the other side of the Atlantic. I see that the US government debt increased $310 billion in the first 2 months of this fiscal year. This is approximately a $1.9 trillion increase. Clearly these kinds of numbers are not sustainable. Something has to give as we watch this slow motion train wreck, and in my view it will be more problems for the world’s currencies as confidence in governments and central banks continues to erode.
For KWN readers globally, concerns about the collapse of the system are very real because governments have not yet come to grips with the fact that their capacity to borrow is limited. History has shown that over-indebted countries always destroy their currency. When it comes to the future we can only make informed choices and in my view physical gold and silver are the right place to be to weather this worsening storm....
Continue reading the James Turk interview below...
http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/12/7_James_Turk_-_The_Banking_System_is_on_the_Verge_of_Collapse_fi les/shapeimage_22.jpg
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http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/12/7_James_Turk_-_The_Banking_System_is_on_the_Verge_of_Collapse_fi les/shapeimage_23.jpg
“Even though I’ve been saying this has been coming, last week was truly frightening with the banking system ready to fall into the abyss. Had the central banks not stepped in it would have been a Lehman moment. Sadly they haven’t solved the problem, they have just bought time and whether that time is one or two weeks or maybe a month, we will soon find out.”
When asked about the action in gold and silver, Turk stated, “Gold and silver often have a slow period beginning at Christmas and extending through the New Year Holiday. The tight trading range and low volumes in both gold and silver make it appear that maybe the quiet holiday period has already started. Nevertheless, it’s important to note that both gold and silver are holding well above their September lows.
It is also important to note that gold and silver have had an upward bias this past few weeks. So the bottom line is we are very, very close to an upside breakout in both precious metals. Gold needs to clear $1,750, while silver needs to get above $33.25 or thereabouts.
When they clear those levels, a great deal of money will come off the sidelines and enter those markets. And I haven’t changed my view that silver could more than double here over the next several months. There is that much power under the market.”
http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/12/7_James_Turk_-_The_Banking_System_is_on_the_Verge_of_Collapse.ht ml
“The story goes that a large French bank could not obtain funding and was on the verge of collapse. When a depositor withdraws money from a bank, the bank has to turn to other sources of funding or reduce its assets. Given the nervousness about insolvency concerns at many banks today, banks have few funding alternatives. Consequently, last week’s stop gap measure by the central banks is probably going to be short-lived.
Things aren’t any better on the other side of the Atlantic. I see that the US government debt increased $310 billion in the first 2 months of this fiscal year. This is approximately a $1.9 trillion increase. Clearly these kinds of numbers are not sustainable. Something has to give as we watch this slow motion train wreck, and in my view it will be more problems for the world’s currencies as confidence in governments and central banks continues to erode.
For KWN readers globally, concerns about the collapse of the system are very real because governments have not yet come to grips with the fact that their capacity to borrow is limited. History has shown that over-indebted countries always destroy their currency. When it comes to the future we can only make informed choices and in my view physical gold and silver are the right place to be to weather this worsening storm....
Continue reading the James Turk interview below...
http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/12/7_James_Turk_-_The_Banking_System_is_on_the_Verge_of_Collapse_fi les/shapeimage_22.jpg
http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/12/7_James_Turk_-_The_Banking_System_is_on_the_Verge_of_Collapse_fi les/stroke.pnghttp://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/12/7_James_Turk_-_The_Banking_System_is_on_the_Verge_of_Collapse_fi les/stroke_1.pnghttp://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/12/7_James_Turk_-_The_Banking_System_is_on_the_Verge_of_Collapse_fi les/stroke_2.pnghttp://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/12/7_James_Turk_-_The_Banking_System_is_on_the_Verge_of_Collapse_fi les/stroke_3.pnghttp://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/12/7_James_Turk_-_The_Banking_System_is_on_the_Verge_of_Collapse_fi les/stroke_4.pnghttp://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/12/7_James_Turk_-_The_Banking_System_is_on_the_Verge_of_Collapse_fi les/stroke_5.pnghttp://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/12/7_James_Turk_-_The_Banking_System_is_on_the_Verge_of_Collapse_fi les/stroke_6.pnghttp://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/12/7_James_Turk_-_The_Banking_System_is_on_the_Verge_of_Collapse_fi les/stroke_7.png
http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/12/7_James_Turk_-_The_Banking_System_is_on_the_Verge_of_Collapse_fi les/shapeimage_23.jpg
“Even though I’ve been saying this has been coming, last week was truly frightening with the banking system ready to fall into the abyss. Had the central banks not stepped in it would have been a Lehman moment. Sadly they haven’t solved the problem, they have just bought time and whether that time is one or two weeks or maybe a month, we will soon find out.”
When asked about the action in gold and silver, Turk stated, “Gold and silver often have a slow period beginning at Christmas and extending through the New Year Holiday. The tight trading range and low volumes in both gold and silver make it appear that maybe the quiet holiday period has already started. Nevertheless, it’s important to note that both gold and silver are holding well above their September lows.
It is also important to note that gold and silver have had an upward bias this past few weeks. So the bottom line is we are very, very close to an upside breakout in both precious metals. Gold needs to clear $1,750, while silver needs to get above $33.25 or thereabouts.
When they clear those levels, a great deal of money will come off the sidelines and enter those markets. And I haven’t changed my view that silver could more than double here over the next several months. There is that much power under the market.”
http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/12/7_James_Turk_-_The_Banking_System_is_on_the_Verge_of_Collapse.ht ml