- Leeb – We Will Now See a Gold Standard Imposed in Europe!
With stocks trading lower, along with gold and silver, today King World News interviewed acclaimed money manager Stephen Leeb, Chairman & Chief Investment Officer of Leeb Capital Management. Leeb told KWN we will see a gold standard imposed on Europe. Leeb also said the Chinese will move to back the yuan with gold. Here is what Leeb had to say about the situation: “Gold is reacting to what’s going on in Europe. It’s the last resort of liquidity for a lot of people. It’s been the best performing major asset over the last 12 years. You have a lot of chaos in Europe and no one knows what’s happening, so there has been a lot of reflex selling of gold.”
“Gold has been a bit stronger than I thought it would be considering the danger of a euro breakup is accelerating. I don’t think there’s any chance the euro holds together under its current form. Unemployment among the young in Greece is about 50%. That can’t stand, it just can’t. These politicians can’t do this forever. People are not going to tolerate starvation. Sooner or later the politicians are going to have to respond. This means less austerity and more growth, and the end of German hegemony in Europe. … You are going to have a lot of currency devaluation. You are also going to see massive inflation. Everybody knows what that means for gold.