Embry – Expect Shortages Of Gold As Soon As Next Month [kingworldnews]
July 24, 2012 Leave a comment
Today John Embry stunned King World News when he warned, “We are moving toward a fundamental shortage of gold, and I believe it may start as soon as next month.” Embry also cautioned, “The problem now is that the global economy is contracting at a time when the debt levels are catastrophically high.”
Embry, who is Chief Investment Strategist of the $10 billion strong Sprott Asset Management, also discussed Europe, but first, here is what Embry had to say about the drought and inflation: “I am very concerned about this drought that is happening, particularly in the United States. You look at a weather map in the Midwestern United States, the temperatures are just staggeringly hot and there’s no moisture.”
“Already the corn crop has been reduced dramatically. Aside from the fact that it will have a big impact down the road in the economy, because food prices will move up sharply, on a basic level this is the difference between starvation and survival for people in certain parts of the world.
Embry had this warning regarding Europe: “If you look at the news coming out of Europe, it’s almost like can it get much worse? And it gets worse. The Spanish stock market has been down 12% in a few days. That’s the equivalent of 1,500 points in the Dow.
The Spanish market is now at levels last seen in 2003. Their interest rates just surged to news highs over 7.50% on the 10-Year. I also see six Spanish regions are asking for bailouts, and where’s the money going to come from? The Spanish government hasn’t got any money. The European nations are trying to recapitalize Spain, but they don’t really have any money. So in the end it’s going to have to be created out of thin air.
I really appreciated the fact that an insider came out from the IMF, that resigned, and wrote this scathing public letter about all of the failures of the IMF. It’s all true. I mean to me the IMF has been a massive failure and they are part of this troika that’s attempting to deal with the Greek situation, which to me looks hopeless.