http://kingworldnews.com/kingworldne..._Disaster.html
Today John Embry gave King World News an extraordinary interview. Embry, who is Chief Investment Strategist of the $10 billion strong Sprott Asset Management, discussed market manipulation, the crisis today vs the 70s, inflation and where we are headed. Here is what Embry had to say: “I’m fascinated by this whole Barclays situation, in the sense that they have been accused, and have admitted as such, that they have been manipulating Libor. This actually affects about $360 trillion worth of the world’s financial transactions.”
Snippet:
If inflation starts to head towards 5%, you can be sure it’s headed for 10% because they don’t have the ability to stop it now. The only antidote they have to the mess we are in, which is massively excessive debt reinforced by derivatives, is unlimited money printing.
The idea that you can withdraw the punch bowl or sharply raise interest rates, it just doesn’t exist, unless you want to take a complete deflationary collapse.”
Embry concluded with these thoughts: “Man can generally rule the events, he can sort of deal with them. But every once in a while things get so serious that the events overtake the men, and they are incapable of dealing with the event. I think we are in a situation like that.
A good example of this is Europe. Every time they have a meeting and come up with some patchwork fix, we always get a big relief rally, but they haven’t solved a thing. I’m still not convinced as to what Germany is going to do here. I saw an interesting piece from Marc Faber, who suggested people should be worrying about a Ger-Ex, not a Gre-Ex. Meaning a German exit from the euro, not a Greek exit.
I don’t think, in the end, when push comes to shove, Merkel can convince her population to bail out all of these Southern peripherals that are in deep, deep trouble. If you wanted to really put Europe back together, it would take, as I said, unlimited amounts of money. That would require huge backing from Germany.
I just don’t think, given their long history of currency disasters in the 20th century that they are going to buy into that. So we’ll see what happens.”
Today John Embry gave King World News an extraordinary interview. Embry, who is Chief Investment Strategist of the $10 billion strong Sprott Asset Management, discussed market manipulation, the crisis today vs the 70s, inflation and where we are headed. Here is what Embry had to say: “I’m fascinated by this whole Barclays situation, in the sense that they have been accused, and have admitted as such, that they have been manipulating Libor. This actually affects about $360 trillion worth of the world’s financial transactions.”
Snippet:
If inflation starts to head towards 5%, you can be sure it’s headed for 10% because they don’t have the ability to stop it now. The only antidote they have to the mess we are in, which is massively excessive debt reinforced by derivatives, is unlimited money printing.
The idea that you can withdraw the punch bowl or sharply raise interest rates, it just doesn’t exist, unless you want to take a complete deflationary collapse.”
Embry concluded with these thoughts: “Man can generally rule the events, he can sort of deal with them. But every once in a while things get so serious that the events overtake the men, and they are incapable of dealing with the event. I think we are in a situation like that.
A good example of this is Europe. Every time they have a meeting and come up with some patchwork fix, we always get a big relief rally, but they haven’t solved a thing. I’m still not convinced as to what Germany is going to do here. I saw an interesting piece from Marc Faber, who suggested people should be worrying about a Ger-Ex, not a Gre-Ex. Meaning a German exit from the euro, not a Greek exit.
I don’t think, in the end, when push comes to shove, Merkel can convince her population to bail out all of these Southern peripherals that are in deep, deep trouble. If you wanted to really put Europe back together, it would take, as I said, unlimited amounts of money. That would require huge backing from Germany.
I just don’t think, given their long history of currency disasters in the 20th century that they are going to buy into that. So we’ll see what happens.”