Turkish PM Calls For Gold Standard

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The Turkish PM, Erdogan has called for a return to the Gold Standard in a scathing attack on the IMF. Interesting that the call for the use of gold as money is becoming more mainstream.

Prime Minister Recep Tayyip Erdoğan states that instead of ruling the world under the pressure of the dollar the IMF should switch to using gold.

During his stay in Indonesia, Prime Minister Recep Tayyip Erdoğan brought up an interesting suggestion for the International Monetary Fund.

Stating that although IMF assistance may appear to be a prescription for some nations, in fact quite the opposite, the fund has often caused serious problems for countries in trouble, Erdoğan asks why it is that the fund uses dollars instead of gold.

Expressing that he doesn’t feel it is right for the IMF to act according to one nation’s currency, Erdoğan states, “The IMF extends aid on a who, where, how and on what conditions bases. For example, if the IMF is under the influence of any single currency then what, are they going rule the world based on the exchange rates of that particular currency?

Why do we not switch then to a monetary unit such as gold, which is at the very least an international constant and indicator which has maintained its honor throughout history. This is something to think about.”

IT IS IMPERATIVE THE IMF AND OECD CHANGE

Explaining that Turkey had to pay a heavy price for the agreement they made with the IMF, Erdoğan stated, “We have not made a stand-by agreement for the past three periods. In April, we will have zeroed out our debt completely and we have no intentions of working with the IMF again.”

Prime Minister Erdoğan went on to state: “One would hope that the IMF would help countries in trouble, however at present this is not the case. This is what we need to achieve.”

Erdoğan also said he believed the United Nations, the International Monetary Fund, the Organization for Security and Co-operation n Europe (OSCE) and the Organization for Co-operation and Development (OECD) need to all undergo a reform.

Source: Sabah

Leeb – Gold Standard For Europe

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King World News interview with  Stephen Leeb, Chairman & Chief Investment Officer of Leeb Capital Management regarding the Gold Standard that will as he sees it eventually come. His comments come after a bad sell off this week following the fallout from the Greek and French elections.

Many independent analysts including James Rickard, Max Keiser, Peter Schiff and even Ron Paul have called for a Gold standard, but only time will tell if its inevitable as some claim. Certainly the arguments for are quite compelling.

“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 an 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.

This looks similar to the end of World War I.  Once the euro goes, it will be very much like the end of the war…. 

“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.

So you are in the last hours of turbulence for the gold market (to the downside).  Once this correction ends, you are going to have a barnburner to the upside.  Gold will just vault.  I don’t think investors will even remember these frustrating days.  I had been warning we could see this drop in gold because of the problems in Europe, but investors should take advantage of it.

The key to all this appears to be China. Leeb backs up James Rickards opinion that China will move towards a gold back yuan.

Look at what China is doing.  China is buying gold hand over fist right now.  They are going to move the yuan forward as the world’s reserve currency and it’s going to be partially backed by gold.  The world can also expect to see a gold standard imposed on Europe in the next 12 to 18 months. 

As for Gold stocks, it depends on what they have left in the ground.

The junior gold stocks, the ones with honest to goodness reserves which have not been developed, they will see one of the greatest, if not the greatest bull market of all-time. 

But many of the big stocks have become like dinosaurs.  Stocks like Newmont and Barrick don’t have enough gold in the ground.  So what’s bad for Newmont and Barrick, is incredibly good for gold.  We are sitting on the cusp of what may be the greatest bull market we’ve ever seen in our lifetimes.”

Soon we will have QE3 which will lead to inflation.

Leeb also added:  “Prospects for QE3 are rising.  I think the stock market will make some sort of eventual top and just be range bound.  This is what happens when you have inflation taking hold.  We saw this in the 70s when stocks went nowhere for that entire decade, but gold and silver had massive gains. 

The only place to be is going to be hard assets and commodities.  Incidentally, both Glencore and Mitsubishi, two of the largest commodity companies in the world, have come out in the last day or so and stated that “commodity markets are tight.”  Once this is liquidation is over, commodities will go crazy.”

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