We Are About To Enter A Period That Will Devastate People Across The World

Today John Embry told King World News that we are about to enter a period that will devastate most people across the world.

Demise Of The US Dollar
John Embry:  “Eric, gold and silver are continuing to build ever stronger bases here as the anti-gold cartel becomes even more obvious with each passing day with their blatant suppression tactics.  I have believed for a considerable period of time now that we are going to have to endure this chicanery for much longer than the rational mind could stand because there is no longer any mid ground left…

John Embry continues:  “When gold and silver inevitably breakout, they are going to move like scalded cats and those who aren’t already on board are going to have difficulty getting involved.  I think ultimately gold and silver’s best fried is going to be the US dollar, or perhaps more accurately stated, the demise of the US dollar. Very simply, the US dollar is gradually but inexorably losing its reserve currency status.  It is seriously over-owned internationally, with tens of trillions of dollars in foreign hands.  And the US situation in all respects — economically, financially and geopolitically — is deteriorating.  So the last thing the world needs is the current chaos of the US president.
 
Greenspan & Hindenburg Warnings
I was also fascinated that Art Cashin mentioned on KWN Alan Greenspan’s comments on interest rates and the inevitability of stagflation.  As one of the original architects of the financial asset inflation, which has been going for more than three decades, no on is in a better position to know than Greenspan.  I totally agree with his views on the bond market and the bubble state it is currently in.  It is beyond my comprehension how investors can buy bonds at current rates with the relentless monetary debasement that is occurring every day.  The fact that the spread between junk bonds and so-called ‘quality bonds’ has collapsed is just a further example of the desperate need for yield today and the basic idiocy being exhibited in the bond market.

Now on the subject of the US stock market, its relentless rise with little or no volatility represents the extent of market manipulation presently occurring.  It is so overpriced on a historical context that the powers that be realize that any overt weakness could rapidly turn into a waterfall like 1929 or 1987.  Irrespective of the news backdrop, and in my opinion it is lousy and getting worse, the US stock market never reflects it.  

I was also very interested to see the comments on KWN about the Hindenburg Omens setting all-time records.  I’ve always felt that represented a very good warning signal.  As a result, I just don’t think investors can be careful enough at this point, but sentiment suggests investors couldn’t be happier and are currently throwing caution to the wind.

This Will End In Tragedy
In closing, I would just like to say that this will certainly end in tragedy because we are about to enter a period that will devastate investors across the world.  Therefore, I continue to believe that all portfolios should be steadily increasing exposure to gold and silver as well as their respective equities, but it appears that all but the true believers are shunning the sector.  When this all turns it is going to be something to behold.”

John Embry –
8/3/2017