Embry:  “I was fascinated by those revelations last week from the central banks of Sweden and Finland, which Egon von Greyerz spoke about in his KWN interview.  It’s a very powerful thing that people are becoming aware that these central banks don’t even have a fraction of the gold in their own vaults....

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“They admitted that the Fed and others are supposedly storing their (Sweden and Finland’s) gold, but we know that it’s in the hands of people who are not keeping it in vaults.  Instead, the gold is being hypothecated and rehypothecated. 

This just supports my thesis that one of the things the central banks have done over the past 15 to 20 years is lease massive quantities of their gold.  And that’s the way the physical supply has been available to back up the paper suppression of the price. 

So, I’m delighted to see this information being made public because then, no one can deny, which so many have, the fact that this has been going on, and it’s going to lead to an explosion in the gold price when the physical demand finally overwhelms this paper suppression.

I would also add that I am carefully watching the real underlying economic data, as compared to the government propaganda that people are bombarded with from the mainstream media.  If someone was just watching the mainstream media they would be under the impression that things are going fantastic in Europe.

Yet if you get inside some of the numbers in places like Italy and the Netherlands, as well as a number of other countries, the numbers aren’t improving.  In fact, they are now quite clearly deteriorating.  I see there is a lot of ‘happy talk’ out of Spain, but I would just view that as a ‘dead cat’ bounce because that country had collapsed so far and so fast.

Given the debt situation and the banking instability over there (in Spain), the idea that they can have any sustainable real growth is zero.  Obviously, it became apparent last week they were talking about lowering inflation rates again because they were worried about a deflation threat.  This led to some weakness in the euro and subsequent strength in the dollar.

The problem with all of that is the United States’ problems are as deep as those in Europe, but yet we see money sloshing back and forth between the two regions just like we did during the Great Depression.  Money was literally flying around the world during the Great Depression because the problem was that no one knew where it would be safe from day-to-day to keep their money.

But when you look at Europe, the US, and Japan for that matter, it’s difficult to decide what is the worst region, or country with the most debt problems.  What this says to me is that anyone who isn’t taking this opportunity to invest in hard assets is making a serious mistake.”

Embry also spoke about the Fed’s propaganda: “It’s fascinating the new Fed-head (Janet Yellen) that’s coming in to replace Bernanke.  If you really look at her background, she is a true Keynesian.  But the sad fact is that these people are the ones that got us into the situation we are in today because debt never seemed to bother them.

It seems to me that the only solution in their minds going forward is even more debt.  That means there will be even more quantitative easing in the future, and this increased QE will lead to some form of hyperinflation.  So, people need to be aware that we are going to have a very bad ending to all of this.  Meaning, either way we are going to have horrendous ending to all of this.  The reality is that if we start to see the velocity of money pick up, inflation will rear its ugly head and it will become endemic everywhere.

The comments from the Fed’s Bullard today were preposterous.  The fact is that Bullard made those comments now because the Fed realizes they can’t taper.  They tried their taper a few months ago and interest rates soared.  They knew if that continued it would be catastrophic, so now the Fed is now back to releasing new propaganda that would make even Nazi Reich Minister of Propaganda, Joseph Goebbels, cringe.

Right now we are just in one of those quiet periods where the powers that be want to convince people that everything is OK, and so they make markets look better than they should.  They also falsify economic statistics, but to me this eerie calm is just a passing phase and we will soon be back in the eye of the hurricane.”

Embry added:  “With each passing day, as the gold supply moves from West to East, people that are interested in positioning themselves in gold better hurry up and do it because there is going to come a day when it’s nearly impossible to get a large position in physical gold, or silver for that matter.

Anything I say about gold, and I’m extremely bullish on gold, you can just double that for silver.  The simple fact is that silver is a materially smaller market than gold, so any significant amount of money hitting it will have a more outsized impact.

Besides that, silver has much smaller above ground inventories and a very significant proportion of what is being dug up out of the ground is being consumed in industrial uses.  So, when this thing really gets going, the silver price is just going to explode.”

IMPORTANT - Andrew Maguire’s remarkable audio interview is available now and you can listen to it by CLICKING HERE.  There is also a powerful audio interview with William Kaye covering the war in gold & desperation on the part of Western central planners that is available now and you can listen to it by CLICKING HERE.

© 2013 by King World News®. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.  However, linking directly to the blog page is permitted and encouraged.

The audio interviews with Andrew Maguire, William Kaye, Gerald Celente, Dr. Paul Craig Roberts, Michael Pento, Eric Sprott, Grant Williams, Rob Arnott, Art Cashin, Bill Fleckenstein, David Stockman and Jim Grant are available now. Other recent KWN interviews include Marc Faber and Felix Zulauf to listen CLICKING HERE.

Eric King

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© 2013 by King World News®. All Rights Reserved. This material may not be published, broadcast,

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