GoldMoney founder and consultant to the Gold Anti-Trust Action Committee, James Turk, provides us with his current thoughts about the Federal Reserve and his expectations for the price of gold in a recent interview with King World News. He explains that the current world economic crisis is now a global sovereign debt crisis, which is about to include the United States, and, as a result, he looks for the U.S. debt to be downgraded again. As for the price of gold and silver, he now expect an “upside explosion” in the price of both precious metals.
He adds that
“… The reality is the Fed is losing control. It is slowly but surely being overwhelmed by events, and particularly, the reality that US government finances are out of control. We should expect another downgrade soon, just like is happening with the serial downgrades in Europe.”
“The Fed’s interventions to keep interest rates abnormally low are making the US government’s borrowing costs artificially below what they should be. This tactic is keeping the federal government’s deficit from being even worse. Just a 1% rise in its borrowing costs, on the $16 trillion of debt, would deepen the deficit by $160 billion. The so-called fiscal cliff is really a ‘currency cliff,’ and the US dollar is headed straight for it.”
An upside explosion would mean a lot of the money that is now on the sidelines would remain on the sidelines because there would be little opportunity to buy on pullbacks, which is what I mean by an explosion. The market will relentlessly keep going higher. We have probably missed the last chance to buy gold at $1580 and silver under $27. So KWN readers need to get ready for the big summer rally I have been expecting.”
This is a very informative interview, which you can read in its entirety from King World News here.Print This Post Send To A Friend