Embry – Gold, Silver, A Collapsing Global Economy & Panic
August 28, 2012
Today John Embry told King World News, “My greatest fear is that the system could undergo a breakdown to the extent that supply chains could be interrupted.” Embry warned, “… things could become sufficiently crippled in the financial system that it could lead to breakdowns in the supply chains.” Embry also said this event would come as, “… an enormous shock to society.”
Embry, who is Chief Investment Strategist at Sprott Asset Management also discussed gold and silver, but first, here is what he had to say: “I think there are signs of weakness on every front of the global economy. People are scratching their heads because China is reporting 7.5% annualized growth. But if you get into the statistics about railcar loadings, electricity consumption, and so on, it’s not the least bit supportive of that type of growth.”
John Embry continues:
“The mainstream was that China would become a nation of consumers, but it’s not quite happening as predicted. I would dare say their consumer is weakening as fast as their economy, and with the overcapacity, they just can’t continue to build these government projects.
I would also add that Spain continues to put on a brave face publicly, but one year ago the Central Bank of Spain was borrowing north of $70 billion from the ECB. The most recent figures show the Central Bank of Spain has been borrowing $531 billion, which is a dramatic increase year-over-year. That’s ridiculous. These guys are saying they don’t need that big of a bailout, but they need a massive bailout….