Dear Friends:

I was interviewed this morning by Bloomberg Radio on gold. Click the link below to listen to the Podcast. Please note this interview will only be available for 1-2 weeks for people who do not subscribe to Bloomberg.

Click here to listen to Jim’s Bloomberg interview…

There were some key questions that I am reporting to you from memory. It will be most interesting if these items are on the link as I answered them correctly and truthfully.

Question:
David Malpass, formerly senior economist for Bear Stearns, says there are additional asset categories to implode. He named racehorses, fine antiques, paintings and gold.

Answer:
Bear Stearns is not the highest of recommendations at this time. David, wake up. Gold is a currency, not a commodity.

Question:
The index of credit default derivatives is saying that Austria looks bad credit wise.

Answer:
There is more danger in the Credit Default Derivative index than there is in Austria debt.

Do you really believe that those who are today issuing credit default derivatives have properly hedged those transactions so as to be able to perform? The answer is they cannot, as Austria does not have enough trading bonds outstanding to accommodate that hedge.

We should stop picking on the low cap European currencies. The credit problem is the amount of credit in question as a percentage of the GDP.

Face it, everyone is in trouble. The larger the country, the greater the problem.

There were many other questions and answers, but If I am not invited back the above qualifies me for the, “Let’s not tell the truth" hook.