Don Coxe – Europe Needs Gold Backed Bonds

BMO’s Don Coxe tells Eric King the European policymakers keep fooling around with “help” measured in billions when they need to be working with figures that start with a “T,” as in trillions of Euros.  He proposes an answer, but wonders if Europe can move fast enough to implement it.  

The veteran strategist notes that the “big numbers” needed to bail out the mess overwhelm the economies that would have to service it.

Coxe sees a way that Europe can get through the debt sausage grinder – long-term gold backed bonds.  Mr. Coxe provides some detail on that idea.  

The gold bonds sound good, but Europe is diddling instead of dealing with the problems and is heading head long into a major obstacle for central planners making policy – the European summer vacation season. 

“What we can say is that if they don’t announce something really new, radical and likely to work this week, then we come up against something that cannot be changed, which is summer vacations,” Coxe said dryly. “That’s one thing in this secular age is one of the few shared quasi-religious rites in Europe. – People will be taking vacations and it will be very difficult to get anything organized. So I think there is a real risk here to investors… It’s like the French are trying to decide  which wine to serve as they saw the German tanks assembling just the other side of the Maginot Line.” 

Mr. Coxe sees gold moving back into the financial system and it could actually be its savior – if the system doesn’t blow up first.   We deem the interview worthy of sharing. 

Source: King World News

http://kingworldnews.com/kingworldnews/Broadcast/Entries/2012/6/27_Donald_Coxe.html