Eric King:  “What about the turmoil around the world, Grant?  How bad do you expect this to get?”

Williams:  “Eric, we’ve seen some pretty big moves here, particularly in Japan.  We’ve also seen some big moves in other Asian markets as well.  We’ve got political unrest in Thailand, and we also have a currency crisis all over the region….

 Source: http://kingworldnews.com

So it looks very, very shaky.  Hot money has flowed into these markets and it is always a lot easier to get big sums of money into something then it is to get it back out again.

But all of this is a direct result of the Fed tapering.  These guys at the Fed have insisted on this mantra that ‘tapering isn’t tightening,’ which is absolute nonsense.  Of course a taper is tightening and we are seeing the effects of that here in Asia where there is the sucking sound of liquidity being drained out.  Yes, we have seen a wobble in the Dow, but the real pain has been felt here in Asia.

But the most worrying thing that I have seen in the past couple of weeks were the comments made by the central bank governor of India, who essentially said, ‘Look, the cooperation between the world’s central banks is now gone and it’s every man for himself.’

And that’s going to turn into a problem by itself because if we don’t have these coordinated and unified interventions, actions, and interest rate policies that we’ve had, things could get very squirrelly, very quickly, in all kinds of places that most people aren’t even looking at.  This is how all hell starts to break loose.

We had the Asian currency crisis in 1997 and that started with the Thai baht, but it spread to all kinds of places that no one saw coming.  It really feels like if the central planners are not extremely careful that we could be on the edge of another one of those catastrophic situations.  Something may happen in a tiny little market somewhere and it may start a whole lot of dominos falling.”

Eric King:  “It sounds like you expect more dominos to fall, Grant.”

Williams:  “It’s hard to see how they don’t, particularly if you have lost this cooperation between the central banks.  This cooperation has been so important for the stability of the entire global financial structure.  If in fact that cooperation has been lost, it’s very hard to see how they will stop these dominos from falling.

The key to keeping the system afloat has been the coordinated actions.  If you get these central bankers going their own way, that is a recipe for all hell breaking loose.  We’re seeing capital controls already in parts of South America — that’s only going to spread.  We are also seeing chaos and capital controls in the Ukraine.”

All of these independent actions are starting to create more and more friction for the inner working of the financial system, and that’s exactly what will precipitate a breakdown.  These disastrous events that countries and individuals thought they were isolated from are going to become more and more commonplace.”

Williams had this to say regarding gold:  “We had a tremendous fall in Comex gold inventory in January, and this was ahead of the busy delivery month of February.  So this demand for physical metal continues.  These type of things will matter at some point…..MORE HERE