John Embry continues: “The real event that pushed it over the top was Mr. Bernake’s action when he said they were going to freeze rates at close to zero for two years and intimated they would take even more aggressive action. This just confirmed my suspicion that the economy is starting to implode, they are beginning to realize this. When you put all of these combinations together this is extraordinarily bullish for gold and silver, although silver hasn’t really reflected it yet. At the GATA Conference, Jim Sinclair repeated again and I’ve heard him say it many times before, that the world banking system is so polluted with all of the notional value of derivatives, that if liquidity weren’t made abundantly available, continuously, that the whole financial system would collapse. Therefore the expression, ‘QE to infinity’, I happen to believe, is necessary to avoid this fate because they (central planners) do not want to see the banking system collapse on their watch. Accordingly that takes us down the road to hyperinflation and I think Bernanke’s words and actions are certainly indicative of that exact phenomenon.”
Posted on: Sat, 10 Aug 2013 20:37:18 +0000
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