On the heels of today's surprise German Bundesbank announcement that Germany allegedly repatriated 120 tonnes of gold back from the U.S. and Paris, today a 50-year veteran spoke with King World News about the shocking reason why the Netherlands, Germany, and Belgium are bringing their gold back home. He also discussed the mini-crash in China and the extraordinary move by the Swiss central bank last week.
John Embry: “I would like to open by offering kudos to my friend Egon von Greyerz for his foresight on the fate of the Swiss franc/Euro peg. I thought that was incredible analysis in the face of constant propaganda emanating from the central banks. And I hope this disruptive development serves as a warning to investors that these central banks are not the seers they are cracked up to be….
Continue reading the John Embry interview below…
“In my opinion their monetary policies have been disastrous and the volatility that is starting to erupt in various markets stands as testimony to that statement.
Mini-Crash In China
Just today the Chinese stock market had a mini-crash as regulators moved to counter the extreme speculation the market created by the loose money policy. This loose money policy was adopted by the Chinese central bank because they are scared to death about their weakening economy.
There is a global epidemic and as the economies sink everywhere, the central banks' only antidote appears to be greater money creation. This has had remarkably little positive impact on the global economy but it has created bubbles of varying magnitudes in all sorts of markets. The problems come when the bubbles burst as they always do. This will lead to market volatility that will make investors feel as if their hair is on fire.
Massive Bubble In Canada
Speaking of bubbles, I really think we are living in a dream world here in Canada because house and condo prices have risen constantly in major centers since the global financial crisis. Anybody suggesting that it is a bubble is simply dismissed because it hasn’t burst yet, and this is in spite of the fact that the bubble has gotten even larger.
In the midst of this we are seeing the developments in the oil world that are negatively impacting Canada’s most dynamic province, Alberta. They are also taking a severe toll on the Canadian dollar. This may lead to a bursting of the Canadian housing bubble. I’ve seen metrics which suggest that Canadian housing prices currently exceed those seen in the U.S. market at the peak, prior to the crash. The Canadian economy is very narrowly based and it will most certainly not fare well in a worldwide recession, which will only accelerate due to the excessive debt levels in all developed nations.
Gold And Silver Surge
I would like to add that I remain very encouraged by the action in gold and silver, where both have broken through upside resistance. There will be corrections because the central banks are not going to give up easily on this subject. Having said that, people have to understand that the fundamental drivers are at their back and this will create a change in sentiment.
I remain particularly impressed by the precious metals share price action. Considering how few investors own these shares at this time, the upside will be spectacular when the light goes on for more investors that this is really a good idea.”
Serious Questions Surround Bundesbank Announcement
Eric King: “John, what about this announcement by the German Bundesbank that Germany has repatriated another 120 tonnes of gold? Serious questions have already begun to emerge immediately following this announcement.”
Embry: “Who knows whether this announcement is true or not? It’s not a huge amount of gold — only 70 tonnes from the United States. But what is interesting to me is that the northern European countries — the Netherlands, Belgium, Germany — they are all expressing interest in getting their gold back.
I’ve seen it suggested that this may be preparatory to these nations starting a northern European currency bloc in case the euro fails. The euro has been imposed on these countries and it hasn’t worked at all. It seems to me that if the northern countries, which are in much more solid shape than the peripherals, decided they were to go it alone, it may be a good idea to have their gold back. So this may very well be part of it. If this announcement is in fact true, from that perspective I guess it’s a whole lot better than the Germans only getting 5 tonnes of gold back like they did the first year.” ***ALSO JUST RELEASED: Serious Questions Surround Germany's Alleged Repatriation Of 120 Tonnes Of Gold From U.S. And Paris CLICK HERE.
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The audio interviews with Dr. Paul Craig Roberts, Gerald Celente, Lord Christopher Monckton, Michael Pento, Bill Fleckenstein, David Stockman, Dr. Philippa Malmgren, Egon von Greyerz, Stephen Leeb, Andrew Maguire, John Embry, Rick Rule, Rick Santelli, John Mauldin and Marc Faber are available now. Other recent KWN interviews include Jim Grant and Felix Zulauf — to listen CLICK HERE.