Today a man who has been involved in the financial markets for 50 years warned King World News that the world is headed for a major disaster 2015. John Embry, who is business partners with billionaire Eric Sprott, said the global financial system will see enormous turmoil in the coming year as the Western central planners head further down the Orwellian path.
Embry: “I have been focused on the counterintuitive trading in major markets as I look back on 2014 because it is at odds with the reality of the world scene. It’s fascinating, but I feel that if World War III were to break out, the gold and silver markets would be trashed at the London opening and further abused when Comex opened for trading, while the U.S. stock market would be unchanged or even trade higher. And the worse the news backdrop is, the further the Western central planners head down this Orwellian path….
Continue reading the John Embry interview below…
“The repetitive behavior in the precious metals markets by the anti-gold cartel, led by Western central banks, orchestrated through the Bank for International Settlements and executed by the major bullion banks is beyond tiresome and will lead to a major disaster in the global financial system in 2015.
Plunge Protection Team At Work
At the same time gold and silver are being controlled, the Plunge Protection Team has created a severely overvalued U.S. stock market by supporting it irrespective of what the news backdrop is. So we now have a lot of ‘hot’ money that has entered the market. And by any metric I look at, this has led to the stock market being one of the most expensive, if not the most expensive market in history of the United States.
The reason for this activity in the precious metals market is abundantly clear to me at this point. If gold and silver traded without severe manipulation in the massive paper markets, which dwarf the physical markets, the prices would be sharply higher. I don’t think it would be unreasonable to say they would be at least twice the current prices and silver could easily be three times the current price — a level it already traded at for brief moment over 3 1/2 years ago.
The Great Illusion Must Be Maintained
However, if this were to happen, the total fallacy of the central banks’ ridiculous monetary policy throughout the West and in China as well would be revealed. Interest rates would also skyrocket and the obscene debt load in the world would implode. That would also have an incredibly negatively impact on the U.S. stock market.
Nevertheless, this current monetary policy where central banks print whatever is required to keep things afloat is going to end in disaster. I suspect we are heading for a global hyperinflation and this is the worst possible outcome because it is so corrosive for a society as a whole. But this is the path that has been chosen, and with the alternative now being a 1930s-style debt liquidation and accompanying depression, I suspect that the central banks will continue on their mission to destroy fiat currencies globally.
The prime example of this is Japan, where things have gone from bad to worse and keep deteriorating even further on a weekly basis. The Japanese savings rate has now plunged into negative territory, and this is after having massive savings for all of the recorded post-war history. The government Debt/GDP ratio is by far the highest in the industrialized world. The current fiscal gap is staggering, and real incomes are falling. Abenomics in the fullness of time will be seen as total economic madness.”
Embry also added: “The fact that gold and silver have been held under the boot of corrupt Western central banks just demonstrates that the pricing power still resides in a fraudulent paper market where there are at least 100 claims for every available ounce of physical gold. When this great Ponzi scheme unwinds, and it most assuredly will, people had better make sure they own a lot of physical gold and the respective equities because the repricing of gold will create one of the most violent upside moves in history.” ***ALSO JUST RELEASED – We Have Never Seen This In The Recorded History Of Markets CLICK HERE.
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The audio interviews with David Stockman, Dr. Philippa Malmgren, Egon von Greyerz, Dr. Paul Craig Roberts, Stephen Leeb, Andrew Maguire, John Embry, Gerald Celente, Rick Rule, Bill Fleckenstein, Ben Davies, William Kaye, Rick Santelli, John Mauldin and Marc Faber are available now. Other recent KWN interviews include Jim Grant and Felix Zulauf — to listen CLICK HERE.