With gold and silver surging strongly, today a 50-year market veteran takes King World News readers on a trip down the Orwellian rabbit hole as silver shorts get torched. He also warned that there will be hell to pay for what the Western central planners have done.
John Embry: “There is a somewhat better tone in the precious metals markets today. The metals are horribly undervalued at this point. Silver is bouncing sharply above the $16 level, where there has been a concerted effort to hold it for the last several weeks….
Continue reading the John Embry interview below…
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“But the upside action in silver is not surprising given the remarkable Commitment Of Traders report that was released late last week. There had been a large increase in the open interest in silver to what I believe is a record level. But more surprising, the COT report showed that the large speculators increased their short position by nearly 10,000 contracts in one week.
Speculators Short More Than 50 Million Ounces Of Silver In One Week
Therefore, speculators shorted more than 50 million paper ounces of silver at a price at least $5 below the median cost for a pure silver producer to dig it out of the ground. To me that’s remarkable and it’s just another demonstration of human stupidity at work. This is happening in an environment where negative interest rates on bonds are proliferating worldwide.
A Chilling Trip Down The Orwellian Rabbit Hole
Well, there now appears to be a concerted and growing effort to discourage individuals from using cash. It appears they want to get cash out of the system. To say that this is becoming more Orwellian by the day is a considerable understatement.
It’s fascinating to me that a Citigroup economist, William Buiter, who recently uttered the preposterous statement that gold has been in a ‘6,000 year bubble,’ has now turned out a lengthy paper proposing banning cash from the system. I find it laughable that one individual working for one of the walking dead banks has the unmitigated gall to put out such rubbish, but that’s what we’re up against right now. Buiter’s nonsense just demonstrates how far down the rabbit hole we’ve really gone.
I mentioned in one of our previous interviews about the explosion of new brokerage accounts by Chinese citizens. I actually had no idea the true extent of it until I saw a chart over the weekend that demonstrated how ridiculous the situation has become. The chart shows a line going straight up and it is truly astounding (see chart below).
Clearly the Chinese are sponsoring a massive stock market bubble, right as their debt-ridden economy is experiencing decelerating growth. I can only assume that the Chinese public will spend their winnings and bolster flagging consumer activity.
"There Will Be Hell To Pay"
The real problem is that there are no easy solutions to any of the problems in a vastly over-indebted world. I’m afraid our central bankers are only making the final outcome worse with their current actions. My advice to investors is to avoid paper and own real, tangible items such as gold and silver and be very careful about excessive leverage because there will be hell to pay for the reckless actions of Western central planners.” ***ALSO JUST RELEASED: John Mauldin – The Next Great Shock To The World CLICK HERE.
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The audio interviews with John Mauldin, Michael Pento, Gerald Celente, Egon von Greyerz, Dr. Paul Craig Roberts, Andrew Maguire, James Turk, Rick Rule, Bill Fleckenstein, Dr. Philippa Malmgren, Eric Sprott, Robert Arnott, Michael Pento, David Stockman, Marc Faber, Felix Zulauf and Rick Santelli are available now. Other recent KWN interviews include Jim Grant — to listen CLICK HERE.
