KWN intervjuer JM Eveillard, fondsforvalter av First Eagle fondene med 50 milliarder US$ under forvaltning

With advancing to the $1,680 level and silver firmly above $32, today King World News interviewed legendary value investor Jean Marie Eveillard, who oversees $50 billion at First Eagle Funds.  KWN wanted to get Eveillard’s thoughts on gold and global money printing.  When asked about the continued money printing, Eveillard stated, “What we already had was the fact the Federal Reserve was printing money and the Bank of England was printing money.  Now you have the European Central Bank, in an indirect manner, is also printing money.  They have made enormous amounts of money available to commercial banks, from the European Central Bank, for the next 3 years on very cheap terms.” “The central banks have availed themselves of several hundred billion dollars, and apparently there will be another run in a week or two.  There is a suspicion that some of that money, once in the hands of the commercial banks, goes into buying some Italian government bonds or Spanish government bonds.  It’s all newly printed money by the European Central Bank and that’s why, in an indirect manner, the ECB is doing exactly what the Federal Reserve and the Bank of England have been doing for quite a while.  I don’t think it will be too long before the Japanese, which are suffering because the yen is too strong, do a little money printing themselves.  All of this is very good for gold. 

Incidentally, I noticed there are a few articles beginning to appear talking about the Austrian School of economics.  There was a column in the Financial Times by Gideon Rachman where he says, in essence, ‘Well, I’m feeling a little bit Austrian today.’  Rachman’s article has a lot to do with the idea that when he looks at the gigantic amounts of money the ECB is being forced into printing, in order to help the European situation, he says, ‘Hey, you know that’s potentially enormously inflationary.’ “What happens is you are buying time, but what happens is in order to stabilize matters in the short-term, you are comprising the medium and the long-term.  I think, eventually, this is going to be highly inflationary. Now, number one there is a problem of semantics there.  The Austrians always said, ‘Inflation is not the increase in the consumer price index or the increase in the prices of various assets.  Those are only symptoms of inflation.  Inflation is the creation of too much money and too much credit.’

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