Embry - System Wide Melt Down as US to Enter Hyperinflation

[ktlight]

FYI:


With continued volatility in gold and silver, today King World News interviewed John Embry, Chief Investment Strategist of the now $9 billion strong Sprott Asset Management. When asked about the US debt situation Embry replied, “They’ve got this market in a lockdown because they don’t have any answers to anything. So they’re just kicking the can down the road, but we’re getting close to when the can is going to hit the wall, then we’re going to have some action and I suspect that’s going to happen in the next two months.

I think that people are going to realize that the US doesn’t have any solutions to this issue about debt limits and QE2’s and QE3’s and QE6’s and that they’ve basically reached the point where they can’t put it off any longer. I think people will realize when they up the debt limit by two and a half trillion or so to get them through the election, how totally hopeless this situation is. It’s not one iota different than Greece.”

Embry continues:

When asked how the US debt will be resolved Embry stated, “It will either be inflated or defaulted, it will not be paid back under any circumstance. If I were emperor I would take the hit now and I would go through the deflation and destroy the debt and get rid of it so we could start over, the sooner the better. They will not do that because nobody wants to be in charge when the **** hits the fan. So consequently they will just kick the can down the road.

They will print and I agree with Jim Sinclair, I believe QE to infinity and this will lead to hyperinflation, and God knows what happens then. What happens every time I suppose, the whole system melts down. That is the route they will opt for given the alternative being a hard depression, a deflationary depression.

The two things you can be assured of: One is that the standard of living for the average person will be crushed, and two there will be some form of civil unrest because people confronted with this reality are going to become extraordinarily unhappy.”

When asked if we could have a situation where the stock market experiences a Weimar effect and just continues higher Embry replied, “Well that’s an excellent question because it all just depends on what the response of the authorities is and if the authorities do what I think they are going to do and that is resort to some new form of quantitive easing, irrespective of what they call it, then the stock market will I suspect reverse and it will rise again...

source to read more
http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/6/13_Embry_-_System_Wide_Melt_Down_as_US_to_Enter_Hyperinflation.html

[GlassSteagallfan]

First, thanks ktlight for all the news you post here at avalon.

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When asked how the US debt will be resolved Embry stated, “It will either be inflated or defaulted, it will not be paid back under any circumstance. If I were emperor I would take the hit now and I would go through the deflation and destroy the debt and get rid of it so we could start over, the sooner the better. They will not do that because nobody wants to be in charge when the **** hits the fan. So consequently they will just kick the can down the road.

There are many, including myself, that would love to be in command when the SHTF. Many are aware of the financial system stability before the repeal of Glass Steagal in 1999. Many are ready to return the 17 trillion in U.S. debt back to Wall St and the City of London.

Here in the U.S., after Glass Steagall is restored via HR 1489, a plan is on the table to re-employ 8 million engineers on one science-driver program alone! Also known as NAWAPA, the North American Water and Power Alliance is a project to capture 20% of the rainfall on the North American continent. Currently only 1% of fresh water is captured by lakes, rivers and basins etc.

NASA and agriculture are other examples of restoration. Clean food!!!!!

The 'after Glass Steagall restored' United States will be free of the derivate debt which continues to grow exponentially. Credit will be freed up which allows emergency funding to the bankrupt states (all 50), which will put police, firefighter and state employees back to work.

There are many other benefits to the defeat of the banks, but there will be some sacrifice and pain first.

Put the fire to Congress now. The vote is July 3rd.

[Lazlo]

I really try to be optimistic, but every time I look at the global financial mess, I get the overwhelming sense that it is simply just too late.

600 trillion to 1 quadrillion in derivitives, several years worth of global GDP, with everyone cross collateralized. I think that the most obvious tell is how much money is being pumped into Greece. A simple calculation would suggest that Greece's economy is not large enough to really make a difference, but the people in the know are scared out of their pants. Greek default could be the black swan landing that starts the whole domino set up in motion. Scratch that, it's more like a Rube Goldgerg than a set of dominoes.

Long Term Capital Management almost brought the whole thing down in 1999. But Greenspan convinced congress to run Brooksley Born out of Washington, that regulation was still a bad thing, and that the markets should decide risk and police themselves. It was only after he retired that Greenspan admitted that his entire Ayn Randian world view was wrong and that government does have a place in markets. Sorry Al, too late, the monster had grown too big, under your watch.

The system is a prisoner in the death chamber, the drugs have already been pushed through the IV, and now we are just waiting for the heart to stop.

Edit to add: At least the shills have stopped blaming this on bad mortgages in the US. If it was simply a matter of people not making payments, we could have paid off EVERY mortgage in America, several times over. The American people would have preferred this to giving billions to foreign banks and corporations. Caution, toxic amount of sarcasm coming up: The financial system could have gone back to ulimited growth and record profits forever, WHEE!!!!!

[Lazlo]

:bump:

From CNN:

Greek crisis at the tipping point

http://finance.fortune.cnn.com/2011/06/15/greek-crisis-at-the-tipping-point/?hpt=hp_t1

Selected Quotes from the article:

"But their little game of chicken souvlaki now threatens to jolt Europe and perhaps the world with a new financial disaster"

"Markets, after ignoring the Greek time bomb for months, are starting to act appropriately terrified. U.S. stocks declined again Wednesday, as the dollar rose against the euro. Government bond prices across Europe's troubled periphery continued to sink"

"The market tremors come at a time when it is looking like policymakers in Europe may have fallen disastrously behind the threat they have spent the past year trying to contain."

"But with the markets putting 3 in 4 odds on a Greek default within five years and nearly 50-50 odds on defaults in Portugal and Ireland, it seems clear that many of those forces already have been unleashed."

"It is still possible that the Europeans can come to grips with this crisis before we end up in a replay of Lehman Brothers. But in a depressing replay of 2008, for now it seems that the flavor of the day is wishful thinking."


The psychopaths in the markets are still making bets and creating new derivatives on this stuff!!!!

:boom::boom::boom::boom::boom::boom: