With the price of gold and silver soaring, today John Embry told King World News there is going to be a continued massive surge in the gold price, but the gains in silver will be “historic.” Embry spoke at length about the gold and silvermarkets, the Fed and the mining shares. Below is what Embry had to say in this powerful interview.
Embry: “I’m focused on the better tone in the gold and silvermarkets. It’s been a long struggle, but with all of the information that’s come out recently regarding how tight the physical market is and the fact that the paper gold market really is one of the greatest Ponzi schemes of all-time, I think we could finally be on the cusp of a huge move in gold….
“I’m not talking $100 to $200 move for gold. I mean gold going back to the old high of $1,920 in a fairly short period of time.
One thing that drove me crazy last week was Bernanke’s testimony and some of his statements after the fact. Gerald Celente noted that Bernanke said if the Fed wasn’t continuing to print money, that the economy would ‘tank.’ That’s exactly what all of us have been saying on KWN for months, if not years.
But it’s interesting that Bernanke basically said as much himself, and nobody picked up on it. Bernanke was asked by one of the Congressmen if he was printing money, and he answered, ‘not literally.’ Now what does that mean? If you are creating $85 billion a month to buy Treasuries and bad bank mortgage debt, if that’s not printing money then nothing is.
Today David Stockman warned King World News that there is a great “unwind” ahead that will “ricochet” violently through all global financialmarkets. Stockman also predicted there will be a worldwide flight to gold during the coming panic which will eclipse the mania seen in gold in 1980. KWN takes Stockman’s warning very seriously because he is the man former President Reagan called on in 1981, during that crisis, to become Director of the Office of Management and Budget. Below is what Stockman had to say in this powerful and exclusive interview.
Stockman: “The markets are just irrationally thrashing around in response to a Fed that has lost control of policy. They have been working their way to the edge of a cliff, I think, for years now with this massive money printing, bond buying, and zero interest rates.
They are saying through 2015 we are not going to tighten the short-term interest rate, which means it will be zero for (a total of) six years. That is just crazy, almost lunatic….
“Therefore, the markets no longer function as honest capitalmarkets or money markets. They are simply a lot of boys and girls and algorithms running around trying to trade whatever they think the Fed is going to do next based on word clouds and these massive daily purchases.
So we have a totally broken financial system and we can expect this kind of turmoil in every one of the major securities markets to get worse as we move towards the final blowoff of this third bubble that we’re in in the 21st century … and it’s only a matter of time before this one blows as well.
Today David Stockman warned King World News that people need to be prepared for tremendous chaos in global financialmarkets, and investors need to “get out of harm’s way.” Stockman is the man former President Reagan called on in 1981, during that crisis, to become Director of the Office of Management and Budget. Below is what Stockman had to say in part II of his powerful and exclusive interview.
Eric King: “You’ve talked about large carry trades, and I’m just wondering what your vision is of how those will unwind?”
Stockman: “That’s what’s wrong with zero interest rate policy and keeping the overnight rate at zero. It allows people to buy assets that have any kind of yield or any kind of appreciation, put them up as repo, and borrow 95 cents to 98 cents on the dollar.
This isn’t a natural way for a market to function. The point is that if confidence is ever lost that the Fed and the other central banks of the world can keep this game going, these massive trillions of dollars of carry trades of this sort will unwind….