With global stock markets surging, today a 50-year market veteran told King World News that the move higher in global markets is a sign of desperation by Western central planners. He also warned that something is terribly wrong beneath the surface.
John Embry: “What’s bothering me is that as things continue to deteriorate economically, financially and geopolitically, the totally rigged market action becomes increasingly more frenetic. There is no better example than today’s ludicrous activity….
Continue reading the John Embry interview below…
“As you know, global stock markets got walloped on Friday in the wake of the Chinese trying to deflate what is becoming an epic bubble in their stock market by changing some shorting and margin rules. Also, the safe havens gold and silver had a relatively good day on Friday.
Collapsing Stock Markets Would Be Their Worst Nightmare
Well the powers that be, the central bankers, can’t allow any strong deflationary trends to get started, and collapsing stock markets would be among their worst nightmares. Thus, over the weekend the Chinese road to the rescue, not surprisingly after their bloated stock market collapsed on Friday, by announcing some easing moves. This buoyed stock markets around the world today.
Business As Usual In The Paper Markets
Now in a world where real markets existed, an easing move by any major player at this stage of the cycle should have led to a sharp upward move in precious metals, which are one of the most severely undervalued sectors in world markets. However, in our totally manipulated world all precious metals were slammed this morning in a completely counterintuitive move. This was done by the usual suspects in the paper markets.
Something Is Terribly Wrong Beneath The Surface Of Global Markets
Sadly, none of this is solving any of the problems in a horribly over-indebted world, where a derivatives meltdown is inevitable, if it isn’t underway as I speak. Just the nature of the way the global markets are being controlled with an iron-fist makes me very suspicious that there is something terrible going on behind the curtain.
And with the volatility in the oil price, the growing probability of Greek exit from the euro, and the Austrian bank meltdown — just to cite three issues — there is ample reason to believe the problem in the derivatives market may be immediate. One must never forget that if a party fails in its derivative obligations, the winning side doesn’t get paid and both entities balance sheets suffer.
Investors Should Seek Safety From The Coming Storm
Considering the magnitude of the derivative exposure in the global banking system, and the aforementioned increase in the volatility in so many areas, I believe a massive failure is inevitable and it could be coming relatively soon. Thus what investors should be seeking are assets with absolutely no counterparty risks, and obviously physical gold and silver in one’s possessions qualify as the safest of havens.
The fact that gold and silver are both so dramatically undervalued should just add to the attraction. But all the public sees is the lousy counterintuitive price action in the paper markets by the central banks and their cronies, and so they stay away. However, in the fullness of time this will turn out to be a fatal financial error.” ***ALSO JUST RELEASED: You Won't Believe What The Public Was Doing During Friday's Huge Selloff In Global Stock Markets CLICK HERE.
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The audio interviews with 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, John Mauldin, John Embry and Rick Santelli are available now. Other recent KWN interviews include Jim Grant — to listen CLICK HERE.