On the heels of the US Dollar Index breaking above 97, today a 50-year veteran spoke with King World News about everything from the Turkish coup, to the Italian baking crisis and the silver market.
John Embry: “Eric, we are living in very interesting times. Since we last spoke one week ago there has been an attempted coup in Turkey, more controversy over the Italian banking crisis, and a blowout to all-time highs in Open Interest in the silver market on the Comex. The fascinating situation in the silver market is something that you referred to in yesterday on KWN…
Continue reading the John Embry interview below…
John Embry continues: “There are a lot of conflicting stories on the Turkish coup attempt. But the fact that it didn’t register at all in markets displays the extent of the lockdown on all global markets at this point. Turkey is a NATO member and a vital cog in the entire Middle East scene. So severe unrest there is far from a positive in an already fragile economic, financial and geopolitical world scene.
And the Italian banking crisis is real. It shows how numb we have all become regarding large numbers. In a country of roughly 60 million people, there is reportedly 360 billion euros of bad debt. This is over 6,000 euros of bad debt for every Italian citizen. That is preposterous.
But what is even more laughable is the dispute between the EU and the Italian government. The EU wants the Italians to adhere to their rules and bail-in the debt-holders at all of the banks. The Italians want a government bailout because so much Italian bank debt is held by Italian citizens that a bail-in scenario would be catastrophic for the government. The Italian situation is far from over but it is just another obvious manifestation of the depth of the rot in the world financial system.
A Shocking Surprise In The Silver Market
With respect to the silver situation, JP Morgan and their allies are digging in to prevent a breakout in the silver price and are shorting unprecedented amounts of paper silver in their efforts. Previously this was always a precursor to a sharp takedown in the price as the long speculators got flushed.
However, something feels different this time. And just as Andrew Maguire referred to a near commercial signal failure in the gold market in his KWN interview this weekend, we may be close to just such an event in the silver market. I have believed for a long time that silver was the cartel’s biggest problem due to a lack of above ground physical inventory.
In addition, I just read the most pathetic negative story about silver on Reuters, which was filled with misinformation, if not outright lies. To me that is just another signal that silver is becoming another problem for the powers that be.
In closing, the recurring conversation about helicopter money should tell observers all they have to know about how desperate authorities are becoming. Helicopter money is just QE on steroids as the central banks directly fund spiraling government deficits in an attempt to counteract worsening deflationary pressure. In my mind this virtually insures hyperinflation in our future, and I don’t think at this point investors can own enough physical gold and silver.”
***KWN has just released the incredible audio interview with London metals trader Andrew Maguire and you can listen to it by CLICKING HERE OR ON THE IMAGE BELOW.
***Also Just Released: WARNING: Commercial Short Positions In Silver Hit Another All-Time Record! Click Here.
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