On the heels of China's historic adjustment of the yuan, today a 50-year market veteran spoke King World News about the chaos in China, economic suicide, shenanigans from the Fed and 3 ominous warnings!
John Embry: “We saw the usual drill in the stock markets yesterday in the wake of these massively overvalued entities in both China and the U.S. giving every indication of breaking down last week. In the eyes of the central planners this can’t be allowed to happen because it would send all the wrong signals to the unsuspecting public….
Continue reading the John Embry interview below…
“Thus, we had explosive rallies in the stock markets yesterday, which in my opinion are just contributing to building an even larger massive top formation in both the U.S. and Chinese markets.
Chaos In China As They Dump U.S. Treasuries
What is most interesting in China is not the gyrations in their stock market created by their market manipulators trying to defy gravity, but rather the more significant and dramatic weakening of their economic numbers. This shouldn’t come as a surprise to anyone who has been watching the massive overbuilding by the Chinese in all phases of their economy over the last few years. Manufacturing facilities, real estate and infrastructure are all dramatically overbuilt and there is excess capacity everywhere.
As a result of this totally uneconomic aspect, the Chinese banking system is now riddled with a staggering amount of bad debt. Not surprisingly this has led to the Chinese offloading a portion of their U.S. Treasury holdings. I think I saw a figure of $180 billion, which is not insignificant.
Economic Suicide And More Shenanigans From The Fed
That begs the question: Who is buying all the U.S. debt and allowing interest rates to remain at inappropriately low levels? The Federal Reserve is certainly heavily involved, and so this calls into question the much talked about interest rate hike that the Fed incessantly refers to. I think it would be economic suicide to raise rates given the economic fragility of the U.S., and the already unconscionable amount of U.S. debt which is already in existence. However, they have to keep up the rhetoric in order to maintain the unwarranted confidence in the U.S. dollar.
3 Ominous Warnings!
I think KWN readers around the world should take time to re-read the brilliant analysis by Egon von Greyerz and Michael Pento, which they contributed to your site over the last few days. That’s what the future is really all about. In addition, the current market prediction of the remarkably prescient Gerald Celente should get the attention of all stock market bulls. The bulls may ignore Celente’s warning, but they will pay a terrible price as a result.
Switching to the gold and silver markets, I thought a headline on the very annoying Kitco site on Friday said it all. It was discussing the fact that Wall Street and Main Street remain solidly bearish on gold as the price is below $1,100. I found it interesting that anyone would care what these two constituencies think. Wall Street is up to its neck in the suppression scheme, and Main Street is blissfully ignorant about precious metals as they have been constantly lied to by the mainstream press.
All one had to do was read Mohamed El-Erian’s anti-gold piece in the Financial Times last week. That was a tour de force in sophistry from a guy who is now an advisor to a German bank. To think you would get an honest appraisal from a guy like that is pure naivety.
A Spectacular Opportunity Before The Price Explosion
Instead, I think my associate Rick Rule’s brilliant statistic that you published over the weekend tells it all. Gold, silver and their shares, which constituted some 8 percent of U.S. savings and investment in 1980, has now fallen to a miniscule .33 percent. This has created a spectacular opportunity and the Chinese, Indians and Russians realize it, in conjunction with a few clear thinking wealthy entities in the West.
We are getting very close to a price explosion as the available supplies of physical gold and silver dwindle noticeably. The shares have been pounded down to ridiculously low levels, with the HUI trading down by more than 40 percent over the past couple of months. Sentiment in the gold market is horrible and all the components of a historic bottom are now in place, while we wait for the inevitable black swan which is going to change perception dramatically.” ***KWN has now released the incredible audio interview with Rick Rule, where he gives KWN listeners an incredible opportunity to have a free portfolio analysis done by Rick Rule himself. There is no cost or obligation to have one of the greats in the business do this for you and all listeners around the world can take advantage of this by having Rick Rule analyze their portfolios absolutely free. Rule made it very easy for listeners and the instructions are in the audio interview. Rule also discussed the gold and silver markets as well as what to expect from key global markets, and you can listen to it by CLICKING HERE OR ON THE IMAGE BELOW.
***KWN has also now released the incredible audio interview with the top trends forecaster in the world, Gerald Celente, where he discusses his prediction for a global stock market crash and panic in 2015, as well as giving the KWN listeners a peak at the just released Summer Trends Journal, and you can listen to it by CLICKING HERE OR ON THE IMAGE BELOW.
***ALSO RELEASED: Richard Russell – The Brutal Bear Phase In Gold And Silver Is Now Coming To An End CLICK HERE.
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The audio interviews with Rick Rule, Gerald Celente, Bill Fleckenstein, Dr. Paul Craig Roberts, Robert Arnott, Eric Sprott, John Mauldin, Stephen Leeb, Egon von Greyerz, Nomi Prins, Andrew Maguire, Michael Pento, David Stockman, Chris Powell, Dr. Philippa Malmgren, Marc Faber, Felix Zulauf and Rick Santelli are available now and you can listen to them by CLICKING HERE.