Ben Davies: Gold, Defaults & A New Brady Bunch

Ben Davies, of Hinde Capital, discusses his latest 22-page report with Eric King, in the cogent and persuasive 18-minute interview below.

Davies discusses how the sovereign debt euro crisis has entwined itself with a major global banking crisis and led us to the point where if a new Irish government emerges in the New Year which refuses to swallow the recent EU forced bailout, then the whole euro shooting match could come crashing down in short order, with all of Club O’Med falling in sequence like dominoes.

“The fiat currency system is one big Ponzi scheme.”

If the EU do manage to buy time by creating a Brady-style EU bond to support all of these peripheral EU countries, thinks Davies, then this will only push the viability of the euro down the road. However, with all of the fudging that has gone on around this currency since its inception, Davies trusts gold much more than he trusts the future of the euro.

He therefore thinks it likely that the euro will thus fail sometime in 2011 and 2012, perhaps precipitated by the situation in Ireland, and is preparing himself and his investors for this eventuality.

The interview proper starts at 1:02 on the clock: