china to enter acquisitions in strategic industrieWith gold and silver consolidating recent gains and concerns over the US debt ceiling, today King World News interviewed acclaimed money manager Stephen Leeb to get his thoughts on where things stand. When asked about the debt ceiling Leeb had this to say, “We will agree to get some sort of compromise and raise the debt ceiling. I think it’s basically meaningless in terms of the problems that the country faces, I don’t think it will change a thing. We are on a treadmill heading backwards. The one word that I haven’t heard in any of these discussions is growth. The statistics that stand out are recent GDP numbers, no growth and without any growth you are not going to have any credible way of reducing debt.”
Stephen Leeb continues:
“The taxes that we have seen on resource appreciation over the last ten or twelve years continues to damage the economy and basically assures that we are going to have to continue to print money, more and more of it to stay in place. I think that gold and silver and other precious metals are going to continue to go higher.
Right now we are trying to decide how much we should reduce funding for energy. China right now is planning to spend, this comes from sources that are unimpeachable, but they are planning to spend in the neighborhood of one trillion dollars per year on industries that will be related to alternative energies and development of these energies.
They (the Chinese) dominate solar, they basically dominate wind and we are just sitting here with no talk of it, figuring out how much we should cut from our spending on research and development of renewables. It’s not a very good situation, it’s frankly a very frightening one.”
https://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/8/1_Stephen_Leeb_-_Expect_Silver_to_Trade_in_the_Three_Digits.html