On the heels of the stock market in China crashing 8.5 percent overnight, today a 50-year market veteran spoke King World News about the crash in China, the increased mainstream media propaganda and the gold and silver markets.
John Embry: “Things in the real world remain chaotic, with today’s feature being the renewed crash in Chinese stocks. This is in spite of the draconian measures put in place by the Chinese authorities to counteract the initial crash….
Continue reading the John Embry interview below…
“Things like jailing short sellers, not allowing major financial entities to sell stocks, etc, are preposterous. But the Chinese have run a command economy and now they think they can command markets. I think they are going to find out, to their sorrow, that markets are a different beast.
This Will Have Global Consequences
This is very significant from a global perspective. The Chinese have been the world’s major economic engine, as their economy recovered more dynamically those of the Western world in the wake of the global financial crisis. However, it was some what of an illusion, as somewhere in the neighborhood of $20 trillion in new debt was created in order to generate this recovery in China.
Now we have a country that is seriously overbuilt in residential real estate, manufacturing capacity and infrastructure, in the wake of their debt-fueled recovery. The idea that they can now seamlessly transition to a consumer-driven economy is wrong in my opinion, particularly in the wake of the recent stock market action.
I have believed for some time that China’s reported GDP numbers have been seriously inflated. And when the current scenario unfolds, they will be forced into acknowledging that their economy is slowing appreciably. This will have global implications because there is no vitality in Western economies today, and the third world, particularly South America, is in big trouble.
The idea of a global recession, which is rejected by many, is a virtual certainty at this point. Thus, the idea of higher administered rates anywhere in the Western world strikes me as a big mistake. However, we will have to wait and see as the Fed and Bank of England constantly allude to just such a development.
I would like to make one last comment on gold and silver, which are grotesquely oversold, with sentiment as negative as I have ever seen it. Your contributor Jason Goepfert has provided some wonderful charts capturing this reality.
Ignore Anti-Gold Mainstream Media Propaganda
Now, given what is unfolding in the real world, gold and silver should be rising sharply as safe havens with no counterparty risk. But the powers that be have them locked down as tight as I have ever seen. This suppression is also being supported by increasingly more ludicrous propaganda in the mainstream media.
The outcome may be more short-term frustration for those who recognize gold and silver as monetary metals with a long history of retaining their values when fiat currency systems break down. However, the upside price explosion that ultimately occurs will shock all but the true believers, and make the wait and all the frustration more than worth it. And I think that ultimate upside is coming sooner than most people realize.” ***KWN has now released the extraordinary audio interview with legendary Rob Arnott, where the he discusses the unprecedented chaos, turmoil and instability in the global financial system, what investors should be doing with their money to protect themselves from the coming plunge in Western stock markets and much more, and you can listen to it by CLICKING HERE OR ON THE IMAGE BELOW.
***Eric Sprott's remarkable audio interview has also now been released and you can listen to it by CLICKING HERE OR ON THE IMAGE BELOW. The written interview only contains a tiny portion of what Sprott had to say in his outstanding audio interview. Sprott discusses the greatest danger facing the world today, the coming financial carnage, what he is doing with his own money right now, the gold and silver markets, what surprises to expect this year and much more.
ALSO JUST RELEASED: Absolutely Shocking Information About The Brutal War That Is Raging In The Gold Market! CLICK HERE.
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The audio interviews with Robert Arnott, Eric Sprott, John Mauldin, Stephen Leeb, Egon von Greyerz, Nomi Prins, Gerald Celente, Andrew Maguire, Michael Pento, Dr. Paul Craig Roberts, Rick Rule, Bill Fleckenstein, 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.