With global stock markets surging on the heels of the French election, today John Embry told King World News that the gold and silver takedown is running into major resistance as the precious metals markets ready for a major move.
John Embry: “Eric, if anyone needed confirmation as to how rigged the global markets are, we certainly got it in the wake of the French election results…
Continue reading the John Embry interview below…
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John Embry continues: “The outcome was as expected, with the Deep State’s representative, Emanuel Macron, an ex-banker who served in the failed Hollande government — up against Marine Le Pen, the firebrand who wants to remove France from the EU in the final runoff next month.
Yet the markets reaction was euphoria, with overvalued stock markets becoming exuberant as gold and silver were hit hard. One shouldn’t be surprised at the drop in gold and silver, given the humongous short positions which have been established recently. The usual suspects were just waiting for an opportunity to rout the longs and the French election provided an opportunity. It is nice to see both gold and silver attempting to recover, just like they did when we spoke last week. They seem to be more resilient now, so I think we are getting closer to a resolution.
Global Hyperinflation
Perhaps of greater interest right now is Donald Trump’s announcement of, in his words, ‘A massive tax cut’ sometime later this week. The fact that this apparently came as a surprise to some in his camp is par for the course. However, when one examines the fiscal condition of the U.S. federal government, there is considerable cause for concern. The true deficit, not even including the massive unfunded liabilities which totally dwarfs the reported deficit, is probably over one trillion dollars at this time if proper accounting standards were used. Tax revenues have been falling for the last four months, there has been a hike in military spending, a promise of a major infrastructure program, and on top of all that there is the potential cost of a major wall on the Mexican border. Thus, with the U.S. headed for bankruptcy, I see very little on the horizon that dissuades me from my long held view that a global hyperinflation is inevitable.
I laughed out loud last week when I read a piece by some alleged investment professional postulating that bonds aren’t overvalued. It read like Bonds 101 for kindergartners. The writer never once referred to counterparty risk, which is currently extreme, or the probable destruction of our current fiat currency system, which would be disastrous for bonds. If investors are prone to believe this sort of conventional garbage provided by the author, we may be in for an even worse ending that I am anticipating.
The Bottom Line
Investors have to be very careful here. A continuing accumulation of physical gold and silver, with no paper precious metals exposure, unless one is absolutely sure that the paper is 100 percent backed by safely stored physical, remains the proper course of action. In addition, when the inevitable upward price explosion in gold and silver occurs, the precious metal equities will provide spectacular returns.”
***KWN has just released the powerful audio interview with Gerald Celente and you can listen to it by CLICKING HERE OR ON THE IMAGE BELOW.
***ALSO JUST RELEASED: It’s All Illusions And Lies: The Supernova Debt Bubble Is About To Trigger The Death Knell Of The Global Financial System CLICK HERE.
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