Leeb - We Will See Unbelievable Chaos Going Forward

kingworldnews.com

On the heels of unemployment reports being released today in Europe and the US, King World News interviewed acclaimed money manager Stephen Leeb, Chairman & Chief Investment Officer of Leeb Capital Management.  Leeb told KWN he expects to see a tremendous amount of chaos going forward, and it will mean the end of the euro.  Leeb also discussed gold and silver, but first, here is what Leeb had to say about what is happening in Europe and the US:  “Today we got two bad employment reports.  One of those reports was from Europe, the other from the United States.  The fundamentals in Europe and the US are horrendous.  Things are even worse in Europe than they are in the US.”

Stephen Leeb continues:

“The risk in Europe of something really going astray is extremely high.  You have the likelihood of a socialist winning the election in France, who will oppose austerity.  He will not be friendly with Germany.  To me this means the end of the euro, and that will mean a tremendous amount of chaos in Europe.

The euro is not going to last....

“The euro is a complete joke, and the attempts to hold it together will not work. It’s a question of how and when it fails. In the end, you are going to have a lot of inflation in a lot of countries, it’s that simple.

In the United States we saw poor unemployment figures today from ADP. These figures were a disappointment to many investors. This simply reinforces that Chairman Bernanke is ever closer to QE3. This is one of the reasons the stock market isn’t falling a lot today, in spite of the weakness in Europe. This is what’s keeping investors in the market, there’s a tremendous amount of liquidity floating out there.

But what I’m saying is the Western world is going to need even more easing, more money. All of this is incredibly bullish for gold longer-term. I do think you have to navigate the end of the euro before the next massive move in gold, but that’scoming. It’s possible that gold may get hit initially as the euro fails, but you have to buy it if it does.

In the end, the only way this is going to work out is with massive liquidity and inflation.
This inflation is already much more prevalent than any of the numbers suggest. But once the public realizes inflation is heating up, you will see a mad dash for gold.”

Leeb also added: “Once gold gets going, people will be amazed at how fast the silver price moves. You are going to see three digit silver in the next couple of years. Going forward, there simply isn’t enough silver available to satisfy both the industrial demand and investor demand.

We will start to see strains in the physical market in silver at some point in the future. When that happens, silver will be off to the races.”