On the heels of Jim Sinclair telling KWN that a full-blown panic has developed in the financial world with people wanting to know where their gold is, today John Embry spoke with King World News about this explosive situation and how he believes it will unfold. Below is what Embry, who is chief investment strategist at Sprott Asset Management, had to say in his interview.
Embry: “There was a fascinating study done by Kenneth Rogoff and Carmen Reinhart which stated that once an economy gets to 90% government funded debt as a percentage of GDP, its growth rate slows dramatically. This was one of the underpinnings of the austerity movement.
Well, now they’ve come out and done an about face and said that model was all wrong. This is indicative of the fact they (central planners) realize if that if they don’t go to the printing press immediately, this whole thing is going to collapse….