On the heels of the recent plunge in gold and silver, today John Embry spoke with King World News about the IMF’s warning, desperate bullion banks and why their masters no longer care.
The IMF Issues Another Warning
John Embry: “Eric, I am fascinated that the IMF came out with a cautionary note on the magnitude of global debt and the risks that it entails. The fact that they estimated global debt at $152 trillion was interesting in itself because the numbers that I look at would suggest that global debt is at least 50 percent higher than that…
“However, it doesn’t really make that much difference. If you believe in the Austrian Economics, as I do, we have long since passed the point where debt can be created in a productive fashion globally. And that ensures that any sustainable economic growth potential has effectively been extinguished.
Thus, in the absence if any meaningful economic growth, we continue to be inundated with bogus economic statistics and fake market action. This will most certainly continue for another 4 weeks, until the U.S. election, because the powers that be are frantic to ensure that one of their ilk — Hillary Clinton — is elected. Therefore things have to be presented to the largely unsuspecting American electorate in a positive manner.
However, the increasing suppression of the gold and silver prices in the paper market suggests to me that the authorities know perfectly well what is in the offing post-election. The bullion banks are desperate to reduce their outsized short positions while they still can. They certainly took advantage of the opportunity provided last week when the very important physical markets in China were closed for holiday.