In the aftermath of the historic vote by Great Britain to exit the EU, today a 50-year veteran warned King World News that the market turmoil threatens a catastrophic unraveling of the entire derivatives complex.
John Embry: “Eric, Brexit has certainly stirred up a hornet’s next. I have never heard such whining in my life from the elites in Britain. I read with great interest the Financial Times, and from their take one would think the world was coming to an end…
Continue reading the John Embry interview below…
John Embry continues: “Martin Wolf was literally overcome with anger in his column. This was not surprising considering he is a regular attendee at the Bilderberg Conferences, where a one world government is strongly promoted. I could barely get through his column because it was so nauseating.
Economic And Financial Disaster In Europe
The reality is that the European Union is an unmitigated disaster and was misconceived from the very beginning. To think that a monetary union of very disparate countries could succeed in the absence of airtight fiscal controls was a fool’s errand. Compounding the error was the arrogance of the so-called European Parliament in Brussels, which one of KWN’s longtime contributors, Nigel Farage, constantly railed against.
What most people forget is that the European people never voted for this. It was imposed upon them by their elites. The one indisputable idea of the union was that it kept the individual states from waring with one another. But the economic and financial disaster that it has created has taken a tremendous toll on many European countries.
Market Turmoil Threatens Catastrophic Unraveling Of Derivatives
However, the real problem is that Brexit threatens to topple the financial structure, which to put it politely is very fragile. The sort of market volatility we have seen has the potential to unravel the entire derivatives complex. And the impact of this on the already vulnerable banking system would be catastrophic.
Gold continues to put in a decent performance in the face of this turmoil, but the market interference by the usual suspects remains intense. The night that the leave vote was successful, gold rose $100 before the advance was halted and the price was driven lower.
What is interesting is that the change in open interest on Friday was 60,000 contracts, which represents a (staggering) notional 6,000,000 ounces of gold, or roughly 7 percent of the world’s entire annual production. The massive shorting in the paper gold market in the face of what’s unfolding is preposterous, but I guess anything goes when you are trying to protect the world’s greatest Ponzi scheme.
This battle in the gold and silver markets is far from over but I guarantee you that when it ends both gold and silver are going to be trading at multiples of their current prices. I think the mining shares sense that with the HUI Gold Index up roughly 140 percent since late January.”
***Also Just Released: Gerald Celente – This Is Bigger Than Brexit Click Here.
***KWN has now released the extraordinary audio interview with the top trends forecaster in the world, Gerald Celente, discussing what to expect in the aftermath of Brexit, gold, trends, and much more and you can listen to it by CLICKING HERE OR ON THE IMAGE BELOW.
***KWN has also now released the powerful audio interview with legend Art Cashin discussing the chaos in global markets in the aftermath of Brexit, gold, bonds, inflation, possible hyperinflation and much more and you can listen to it by CLICKING HERE OR ON THE IMAGE BELOW.
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