"Wall of Money" Hitting Market Before 2016-2017 Global Crisis
Financial Sense Online

Felix Zulauf sees a global crisis in 2016-2017 from a rising U.S. dollar, Eoin Treacy says a "wall of money" is hitting the stock market, Marin Katusa explains the metallurgy of money, and Jeff Saut sees the market doubling over the next decade.

Here are a few excerpts from this week's set of interviews. Logged in subscribers can click the links below or visit our Newshour page to hear the full broadcasts (click here to subscribe).

Felix Zulauf on next global crisis around 2016-2017 timeframe

"The Greenspan and Bernanke Fed pursued a policy that was too expansive for too long, which made the dollar a weak currency and created a situation where the US dollar was used as a funding currency throughout the world. That has resulted in a dollar-denominated debt outside of the US of probably on the order of $10 trillion US dollars; $6 trillion alone according to the BIS in the emerging worlds, or emerging markets, and out of those $6 trillion the estimates are that at least one if not up to $3 trillion are in China. Having foreign currency denominated debt on your balance sheet is fine as long as that currency declines against you. But when this changes and the foreign currency goes up, that means your debt goes up every day without taking on new debt... [so] eventually the dollar's strength will lead to a global crisis...probably somewhere around 2016 or 2017..." (click here for full broadcast)

Marin Katusa on why gold has lost its luster as a currency

"I'm not a gold bug and I'm not anti-GATA...but my background is mathematics...and in my undergrad I did a double in chemistry and math and when you really study the metallurgical history (of gold) and why it was a currency that was used for thousands of years...well, if you look at the periodic table of elements, you can't use a gas...and then if you look at the volatile elements—for example lithium with oxygen—it's so volatile you can't use that, so you really look at the precious metals and say, okay, at what point with the technology they had thousands of years ago with the metallurgical techniques…if you look at platinum and gold, you need a much higher temperature to extract platinum out of the rock than you need with gold. So, with the technology at the time, it just happened that gold was the perfect element with the technology they had then. Today, we have a lot of different alternatives..." (click here for full broadcast)

Eoin Treacy on "wall of money hitting this market"

"This has been a liquidity-fueled bull market and the Fed is getting ready to raise interest rates so we have to ask ourselves if the liquidity is still flowing? The ECB in Europe started their quantitative easing program and they're buying $60 billion of euros of debt every month for the next 18 months so they are going to swell the size of their balance sheet by 50% and they are going to print $1 trillion euros. Well, that dwarfs the programs that the Fed had engaged in and it really means that we have just a wall of money hitting this market and, provided that liquidity remains extremely abundant, it would be I think rash to say that we are in a topping phase..." (click here for full broadcast)

Jeff Saut sees market doubling over the next decade

"I think we're in a secular bull market that probably has another 8 to 9 years left in it. They typically run 14 or 15 years. We're six years into this and they typically compound at 16% per year so if you compound out another 8 or 9 years at 16% off the base we're currently at, it suggests 4200+ on the S&P 500 in 2023 or 2024..." (click here for full broadcast)

Our technician for this Saturday's podcast and market wrap-up is Louise Yamada of LY Advisors where she covers the broad market, specific sectors, and offers her outlook for interest rates, the U.S. dollar, and even robots. Then, on the Big Picture, Jim Puplava analyzes the latest statement from Fed Chair Janet Yellen and what it means for the economy, the markets, and for investors. All of the above is available on our Newshour Podcast page this Saturday. Be sure to tune in through our site here or in iTunes here!

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