Interview with Donald Coxe of Coxe Advisors on gold, oil, geopolitics, interest rates, and more. Subscribers can access the full 30-minute audio broadcast on Friday by logging in and clicking here. Not a subscriber? Click here.
Oil and Saudi-Iran Hostilities
“I've been telling everybody who will listen to me for nearly two years now that...oil prices are going to be low as long as the Saudis are frightened [of Iran].
The reason I knew that was I had been to dinner with Prince Turki, just the last night that he was Ambassador to the United States, and he talked then...saying the only important thing is Iran. Iran must not get the bomb.
He said if we see that Iran is likely to get the bomb we will use all the forces at our disposal to try and head that off because if Iran gets the bomb then every other nation in the Middle East will have to get the bomb also...”
(Continuing…) “What we know then is if the Middle East is awash in nuclear weapons there will eventually be a nuclear war so we must not let them. So that was the policy announced then, three years before the imposition of this, so the only reason I can reveal this now is because he appeared publicly a few months ago on television and reiterated...that they were terrified of what Obama might do on a deal with Iran...
The fact that so many people spent their time arguing that a 100,000 barrels/day should be cut from production to stabilize prices—this was irrelevant! Absolutely irrelevant!”
Fed Economists Confused
“When Janet Yellen spoke to the New York Economics club, gold, which had been fading, rallied very strongly on the suggestion that the Fed was not going to raise interest rates. Look—it was only three months ago that Stanley Fisher, the Vice Chairman [of the Federal Reserve]…said we are going to have four rates increases [in 2016].
And here we are through the first three months of this year and now we have the Fed is sending…conflicting stories. Last week James Bullard said, yep, we are going to be raising rates and now Janet Yellen says we are going to be cautious because the global economy is giving us concern.
What this is telling us is that these people, who have a thousand economists backing them up and also access to secret information about what's going on out there, if they are this confused then people might say why should I be paying a near all-time high and record P/E for stocks..."