On the heels of bonds, stocks, and crude oil tumbling, today John Embry told King World News that there are now hundreds of paper claims for every ounce of available ounce of physical gold & silver.
John Embry: “Eric, what we saw late last week vividly demonstrates how fragile the whole global economic and financial scene really is. In a period of ludicrously low interest rates that do not remotely reflect the default and/or hyperinflationary risks facing bondholders, the mere mention of higher rates created some panic in the bond market, and that panic has continued through today…
Continue reading the John Embry interview below…
John Embry continues: “This bond panic has resulted in stock liquidations in many world markets. Hopefully this will make the investment public more cognizant of the extreme risks that exist today in conventional financial markets — bonds, stocks, and real estate — all of which are in the throes of historic financial bubbles.
There has been an unjustified faith in the ability of central bankers to control things, and that’s allowed the economy and financial markets to continue without any serious dislocation. I personally have a much less charitable view of central bankers. I think that many of them are disingenuous academics who do not comprehend the risks that they have created in the global economy and financial markets.
The idea that they can manage this situation for many years to come is simply wrong. In reality, they can continue to be as accommodative as necessary, essentially guaranteeing hyperinflation in our future. Or they can attempt to undo their excesses, which will ensure a deflationary collapse in a world that is vastly over-levered.
The Greatest Ponzi Scheme In World History
Last week and this week’s market eruptions were just a minor tremor, but they will probably encourage central bankers to keep stimulating. In the meantime, the gold and silver markets are being attacked by the usual suspects in an even more frantic and transparent manner. As I have said on many occasions, the paper gold and silver markets are one of the greatest Ponzi schemes in world history, with hundreds of paper claims on each physical ounce of metal available in the West.
Thus, the miscreants have no choice but to double down and intensify their efforts to suppress the prices in order to permit this charade to continue somewhat longer. This is why smart investors are taking advantage of this market interference to acquire as much physical gold and silver as possible while they are still available.
The fact that both gold and silver are at bargain prices in comparison to virtually every other asset on earth just makes them that much better of an opportunity. And the more than 20 percent correction in the HUI Gold Mining Index that has occurred following the historic rise that started in mid-January of this year is creating a similar opportunity in the shares and people should take advantage of it.”
***KWN has now released one of Gerald Celente’s most important interviews of this year and you can listen to it by CLICK HERE OR ON THE IMAGE BELOW.
***Also just released: We Haven’t Seen Numbers Like These Before, And It’s Alarming CLICK HERE.
***KWN has also now released one of Bill Fleckenstein’s greatest interviews ever and you can listen to it by CLICKING HERE OR ON THE IMAGE BELOW.
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