Hathaway continues:

“I’m sure the vast majority of investors think that somehow we can restore fiscal sanity to the federal budgeting process, that it can be done democratically, but I kind of doubt that. When you go to somebody and say we’re going to have to go on an austerity regime...that’s socially contentious...they don’t want to hear that. That’s why you’re seeing rioting in Greece and that’s why you’re going to see the same sort of thing here (in the US) if we go the austerity route.”

Hathaway presented a Dow/Gold ratio in http://kingworldnews.com/kingworldnews/Broadcast_Gold+/Entries/2011/6/2_Minera_Andes_Inc._files/Minera Andes 6:2:2011.mp3">

that we’re past the point of no return.”

When asked what the price of gold would have to be to get back on a gold standard Hathaway stated, “It would have to be much higher. I mean basically you have to make paper preferable to gold, and in this climate that means in a way you have to sort of bid for all of the gold, get people to trade in their gold for paper.

The market says you can’t get it at $1,500. Maybe they’ll try $2,000 or $3,000, but the reality is unless that bid for gold is backed by credible measures to restore integrity to government finances, the real number is going to be what we talked about earlier, something in the five digits.”

Jim Sinclair stated the price of gold would have to clear $12,500 to balance the foreign debt of the United States. When asked about Sinclair’s $12,500 number Hathaway said, “Yeah, that ($12,500 for gold) is really what it would have to be.”

Just like the Jim Sinclair interview, here you have one of the great ones, John Hathaway, talking about the end game, essentially the end of the currency system as we know it. This is probably Hathaway’s most compelling interview on King World News for that reason. There is so much more information in John’s segment than the small portions above, so be sure to return to hear the complete interview.