September 15, 2012

Felix Zulauf on Spain

Spain is interesting situation. Dramatic situation, industrial production is 30% below the peak of 2007 and the country is in recession or near depression. The banking system is imploding. The balance of payments is in deficit of 30% of GDP. The Spanish banking system could implode dramatically if there is no euro. The private capital market shut of the country. Interest rates shoot to the moon. Then restructuring. That is not happening here because the government relies on the Spanish government via ELA. Target2 is similar. Spain has banking run. The normal mechanism can’t happen due to the Eurozone system. Bundesbank holds rising claims – 750 billion euro, a combination of several banks – PIIGS. The next number will probably be more than 800 billion. $1 trillion before the euro is over. Germany can never reclaim. Will never see this money. Politics can’t solve it therefore the central bank has to fund it. The ECB has broken several laws. The money printing press is running faster and faster every day.

Felix Zulauf was born 1950, and is the owner and president of Zulauf Asset Management, a Zug, Switzerland-based hedge fund. Felix has worked in the financial markets and asset management for almost 40 years. Mr. Zulauf has been a regular member of the Barron's Roundtable for more than 20 years.

September 02, 2012

Felix Zulauf Warns The European Countries That They Require Drastic Transform In Policy In An Effort To Survive

It truly is well-known that Felix can be a critic of the European widespread currency and his prediction for the monetary union is that it's going to fall apart by the finish of 2012. He adds that if this disintegration does take spot within the future, it will bring only chaos towards the global economic climate.

Additionally, it seems that Zulauf has managed to predict the funding crisis which is approaching inside the USA. He comments that governments across the world have acknowledged the truth that they have debts to redeem and they've to enhance their fiscal policies. In addition, he notes that even the United states itself is going to comprehend this following the election.

As far as Zulauf is concerned, the euro just isn't the true result in for concern but its influence on the economic climate is. He says that items can perform out if the euro zone walked into a political and fiscal union and this in all probability will not take place because Europe will not be prepared to say goodbye to national sovereignty.

It can be clear that Felix is concerned and extremely significantly thinking about the political dangers which lie within the future. By way of example, he said that there is a likelihood that the credit program will likely be nationalized and numerous modifications can take place - dramatic restrictions and capital control on the monetary markets.

Zulauf is convinced that the cyclical bear marketplace has not carried out its job for the very end and his recommendations are extremely pessimistic. In his opinion, the cyclical bear markets will do properly in 2013.

Felix Zulauf hasnt changed his thoughts, regarding gold regardless of the truth that there has been a shakeout. He also recommends shopping for gold if it goes beneath 1500 dollars and he also says that this could lead to golds price falling beneath 1300 dollars. He shares that gold is actually a potent implies of protection from the future.

Greece will not be the only nation that could need to quit on account of the economic depression, says the monetary market place expert Felix Zulauf. He predicts that Greece will exit the European Union, followed by Portugal, Ireland and Spain later on. Italy, France and Germany are certainly not secure either and those nations need to have swift reforms in their policy.
According to him, the only technique to prevent the worldwide banking technique from collapsing may be the nationalization. As for the Europe, it might be saved if all the nations abandon the Euro, but that's most unlikely. Mr. Zulauf believes that the euro isn't an integration project, it divides Europe as a result of the different competitiveness with the European countries.
It really is accurate that the majority of economists have supported the currency union, but there was a minority which has addressed the concerns clear. It truly is really frustrating that their representatives had been always ridiculed and portrayed as anti-European, in line with Mr. Zulauf.
In the course of the previous decades it was all clear and everyone has the ambition to create a superb return for their shareholders. But currently it is not about profit. The idea would be to preserve capital and to create ends meet. This really is what's placing brakes on the economic development.

Felix Zulauf was born 1950, and is the owner and president of Zulauf Asset Management, a Zug, Switzerland-based hedge fund. Felix has worked in the financial markets and asset management for almost 40 years. Mr. Zulauf has been a regular member of the Barron's Roundtable for more than 20 years.