kingworldnews.com / August 31, 2012
Today 50 year veteran Art Cashin shocked King World News by speaking about the most disastrous economic event in the history of the United States. Cashin said, “The most disastrous thing economically that happened in this country, happened in August of 1971, when they came off the gold exchange standard.”
Cashin, who is Director of Floor Operations for UBS, which has $612 billion under management, also warned, “I’m not sure that the leadership is alert enough to be able to implement the gold standard again, but they should really consider, at least, returning to something like the gold exchange standard.”
But first, when asked about how long and brutal this cycle is going to be for the disappearing middle-class and people who are suffering around the world, Cashin responded, “We’ve got a couple of things going here. In the stock market, traders think of something called the 17.6 year cycle. The feeling on Wall Street is that you go through these 17.6 year cycles, where you have a ‘fat’ cycle, where you can pick almost any stock you want and it will go up.”
“The other one in which the markets go up and down, but don’t make any real progress. An example of that is the period from 1966 to 1982, where you started at about 800 on the Dow, and ended at about 800 on the Dow, having gone to 1,000 several times, having gone to 500 several times.
So with that as the backdrop, the current 17.6 year cycle says we’ve got, probably, another 6 years to go. We (started this cycle) in February of 2000. If the economy is going to mirror the market, in some way, then for these people to get back on their feet, we may not be looking at months, we may well be looking at years, and several of them at that.”
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