Mike Krieger on why gold and silver prices are headed much higher

GoldMoney’s Alasdair Macleod talks to Mike Krieger, founder of the Liberty Blitzkrieg blog. They discuss his Wall Street past, the end of the gold and silver consolidations and the need to create new decentralised power structures.

Krieger explains why he calls himself a “recovering Wall Street employee”. When he realised how the system works on a macro level and what role Wall Street plays in the economic-political power structure, he decided to quit his job. He talks about his “indoctrination” with neo-classicist views at university, which teach fiscal and monetary policies as responses to all economic problems — both of which are top down central planning approaches.

They talk about the recent rally in gold and silver prices. Krieger states that the bullishness of the current set-up in both precious metals is underappreciated. The long consolidation periods in both metals have led to an attitude of total complacency, with the public being almost completely out of the market. Despite this negative sentiment he points out that gold is about to reach new highs priced in euros.

To really break out of the consolidation the market just needs a marginal inflow of new money, either from new investors, or from already-invested precious metals bulls that want to add to their positions. He thinks that we are very close to reaching this point. A hint that this is happening comes from recent reports indicating that billionaire investors like Soros or Paulson have been adding to their gold positions. The consolidation has caused a transfer of gold from weak to strong hands (i.e., from people who are more eager to sell to those who are holding the metal for the long haul).

The crisis in the eurozone could be a precursor of what is to come in America and elsewhere, but it doesn’t look like the current political/economic elite will learn anything from it or change course. It will be up to the people to push for substantial change.

This podcast was recorded on 4 September 2012.

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FinanceAndEconomics

Alasdair started his career as a stockbroker in 1970 on the London Stock Exchange. In those days, trainees learned everything: from making the tea, to corporate finance, to evaluating and dealing in equities and bonds. They learned rapidly through experience about things as diverse as mining shares and general economics. It was excellent training, and within nine years Alasdair had risen to become senior partner of his firm. Subsequently, Alasdair held positions at director level in investment management, and worked as a mutual fund manager. He also worked at a bank in Guernsey as an executive director. For most of his 40 years in the finance industry, Alasdair has been de-mystifying macro-economic events for his investing clients. The accumulation of this experience has convinced him that unsound monetary policies are the most destructive weapon governments use against the common man. Accordingly, his mission is to educate and inform the public in layman’s terms what governments do with money and how to protect themselves from the consequences.

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