Felix Zulauf talks to James Turk

Subscribe to our newsletter at http://www.goldmoney.com/goldresearch. Felix Zulauf, Chairman of Zulauf Asset Management, and James Turk, Director of the GoldMoney Foundation, talk about the debt crisis spreading from Greece to the rest of Europe. Felix is very euro-sceptic because of the imbalances between saver nations of the euro-core and the debtor nations of the euro-periphery. Felix sees politicians lagging reality, always two steps behind and how this will put the entire banking system at risk. This will also have political consequences.

They talk about the ECB. They explain how its sovereign bond buying has left its balance sheet in disarray, with negative equity capital. Felix believes that in theory a central bank can survive without equity capital, but from the point of view of credibility a solid balance sheet is a must. A possibility would be for the ECB to increase its gold reserves.

They explain that given the huge outstanding debt austerity measures will not be enough and governments will resort to more money printing. More printing and more debt will not lead to a solution. Felix sees deflationary pressures but expects monetary policy overreaction and currency debasement, as well as negative interest rates to push gold prices much higher.

They discuss the current economic situation and similarities with 2008. Felix explains that Greece is bigger than Lehman and thus we can expect more market turmoil than in 2008. Felix also explains that he expects higher gold prices in the coming months. Felix quotes Einstein's definition of insanity: "doing the same thing over and over again expecting different results".

This interview was recorded on September 30th 2011 in Vienna, Austria.

Category:

Education

Tags:

• James Turk
• Felix Zulauf
• euro crisis
• Germany
• Austrian school
• fiat currency
• ECB
• central banks
• Greece
• interview
• video

[themfu]

Thank you excellent interview

[010daan]

I think the aurgument james turk makes is irrelevant. The debt crisis is because of the United States.

[maxdeniroAu]

Interesting that Mr Turk only mentioned a volume expansion of gold as a solution for the ECB credibility. Why not countenance a value expansion - through price?

Why can't the ECB announce that it will make a 2way market in gold, starting at a price of 20,000 euros? It can print the money to do this. This will signal to the europeans that they should hold their savings in gold, whilst only using the euro as a transaction medium. As long as the process is totally transparent where is the problem?

[cr1138]

Felix! You still short XLB? Fantastic call, btw.

[Fruerik]

James Turk is wonderful as always. On the other hand, a lot of the interviewees are not impressive in their insight whatsoever. I particularly don't like how they stress historical circumstances and data without first approaching some of the questions from an a priori point of view. In other words, investors and speculators need to read their Austrian Economics books before they go to sleep every night.

[1betrman]

James Turk is absolutely Gracious

[1ASHKENAZI]

Great interview. Thanks Goldmoney

[slhines7]

Cut off and stopped at 9:04 for me?

[overlogg]

Great work. thank you...

[sugershakify]

Thanks Mr. Turk. another great interview.