John Embry Warns There May Be A Shocking Surprise In The Silver Market
On the heels of the US Dollar Index breaking above 97, today a 50-year veteran spoke with King World News about everything from the Turkish coup, to the Italian baking crisis and the silver market.
John Embry: “Eric, we are living in very interesting times. Since we last spoke one week ago there has been an attempted coup in Turkey, more controversy over the Italian banking crisis, and a blowout to all-time highs in Open Interest in the silver market on the Comex. The fascinating situation in the silver market is something that you referred to in yesterday on KWN…
“There are a lot of conflicting stories on the Turkish coup attempt. But the fact that it didn’t register at all in markets displays the extent of the lockdown on all global markets at this point. Turkey is a NATO member and a vital cog in the entire Middle East scene. So severe unrest there is far from a positive in an already fragile economic, financial and geopolitical world scene.
And the Italian banking crisis is real. It shows how numb we have all become regarding large numbers. In a country of roughly 60 million people, there is reportedly 360 billion euros of bad debt. This is over 6,000 euros of bad debt for every Italian citizen. That is preposterous.
But what is even more laughable is the dispute between the EU and the Italian government. The EU wants the Italians to adhere to their rules and bail-in the debt-holders at all of the banks. The Italians want a government bailout because so much Italian bank debt is held by Italian citizens that a bail-in scenario would be catastrophic for the government. The Italian situation is far from over but it is just another obvious manifestation of the depth of the rot in the world financial system.
A Shocking Surprise In The Silver Market
With respect to the silver situation, JP Morgan and their allies are digging in to prevent a breakout in the silver price and are shorting unprecedented amounts of paper silver in their efforts. Previously this was always a precursor to a sharp takedown in the price as the long speculators got flushed.