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CNBC Admits We're All Slaves to a Global Government Run by Bankers

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So mostly what they do is hold summits. I think that right now the question is: Do we all work for central bankers? Thats what I want to adress to our guests tonight. Is this global governance at last? Is this one world? The central bankers in charge? Jim Iuorio, you say we have some downside here - a correction in the markets - fine. But aren't we all just living and dying for what central banks do? Aren't we all just counting on the fact that there is a Bernanke put, and that we wont go any lower than say 5% down from here? Well of course we are, because if we look at the economic data, there is nothing to get excited about in that. So yeasterday we have seen some reluctance from the Bernanke FED to expand their ballancesheets and pump more money in, but the stock market knows that reluctance is totally different than not willing to do it at all, and that is why we have seen oil implode and gold trade off heavily, because they are not a protected class - when the stock market starts trading off into 10-15-20% area, the chairman is going to come and throw some stimulus at us, so to answer your question we are absolutely slaves to central banks - and we would love to be slaves to the economy but the economic numbers continue to do nothing but to trend lower. Mr. Lacan, do we work for the central bankers? We do. This is um.. We do. Look, markets are driven by policy now, they are not driven by market forces, they are driven by fiscal cliffs, they are driven by central banks proclamations, they are driven by false rumors coming out of the ECB.. They continue to water our currency down so that the markets go up and we feel good about it. Yeah, and listen to what the FED did this weekend and I think they really screwed up here. They have said that we are going to do this operation TWIST through the end of the year, in other words, they are going to create uncertainty about what happens after operation TWIST, right at the same time when the fiscal cliff kicks in. Do we really want all that uncertainty? We have to give the FED a break here because they realize that what they are doing is probably going to have a very little economic effect. The only real thing that can help is fiscal and policy changes, so FED - all they got is rock and stones left and they are going to throw them. They know they are probably not going to do any good. Gentlemen.. Isn't that why we know there is going to be QE3? Isn't that why we know there ultimately will be QE3? Yea, I am banking on it. I love what you said there Jim. We are basicly beholden to what the central bankers and policymakers do, rather than the fundamentals in the economy, because we have not been able to generate real, real growth without doing one of two things - that is debasing the currency or borrowing our way to false prosperity. How do you invest under those circumstances? What was the question? How do you invest under those circumstances? Oh, we invest, because remember that every central bank in the world not just us, ultimately has to devalue their currency. $%$&#$#... Every major country holds gold. That tells me that it is attractive. Is it attractive to you? I think it is very attractive both as a currency and as a store of value. I agree with Jim, ultimately you will want resources, but the volatility is going to stay with us, so I think the investors need to get used to trimming what they don't like and have in their portfolios in rallies and nibbling at what they do like on selloffs, because these are not going away. The only good news here is that free markets will fight back. When we will see bond riots in Spain and bond riots in Italy, those are free market forces fighting back and ultimately they will win, because investors will ultimately walk away. I think I have heard him say he likes gold. He did say that. Yes. Yes I do. Jim and Jim, the two Jims, thank you very much and John, it is interesting, I have been at the conference this week and one of the most persuasive investors I talked to there said that he felt that what you have to do is to buy things that are scarce. He said gold was scarce. Aggregates are scarce..

Video Details

Duration: 4 minutes and 4 seconds
Country: United States
Language: English
Views: 1,428
Posted by: on Jul 4, 2012

CNBC Admits We're All Slaves to a Global Government Run by Bankers

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