Government Intervention in Gold and the Mega-Bubble in Paper

In the latest Investor’s Digest of Canada, Johny Embry, strategist at Sprott Asset Management, praises one of the latest precious metals book. Obviously, the book he refers to is “The Gold Cartel; Government Intervention in Gold, the Mega-Bubble in Paper and What this Means for your Future” written by Dimitri Speck. The book is available at MacMillan and Amazon.

The full article summarizing the book is embedded below. In this article, we pick out some highlights.

On the author of the book:

I’ve had the pleasure of meeting Mr. Speck who hails from Eastern Europe. Not only he is a deep thinker and a well-informed one at that, but he’s also someone who understand the subject very well. He brilliantly describes the first three stages of the manipulation by illuminating the difference in the banks’ approaches.

On the systemic risk created by money printing:

It’s likely most observers have little, if any, appreciation of the extent of the irreparable – and, systemic – damage done to the precious metals over the past 20 years. simply put, the relentless suppression of gold and silver has created the false impression that irresponsible monetary policies – ones taken on a global basis – have had no lasting repercussions.

By killing the canaries in the coal mine – that is, both gold and silver – while consistently understating the inflationary impact of their money printing, the powers-that-be have been able to hood-wink most of the public. Because the newly created money tended to migrate into financial markets, interest rates were able to fall to inappropriately low levels.

On the coming global financial crisis:

Unfortunately, what’s coming is a global financial crisis – one fueled by steroids. Bu the antidotes have already been used up. With the world now where it’s never remotely been before, any hard and fast prognostications are fauous at best. Our indescretions have ruled out any happy endings – so much so that we’re faced with a future of either mounting inflation or deflationary debt liquidation.

On gold and silver price manipulation:

Because Deutsche Bank was one of the five financial institutions that helped fix the price, its withdrawal brings to mind rats leaving a sinking ship. As readers well know, I believe, as does Mr. Speck, that gold and silver prices have been relentlessly manipulated for many years. A big part of this has been the increased quantities of gold that Western central banks have secretly dumped in the marketplace through leasing, swaps and various forms of rehypothecation.

Receive these articles per e-mail

Subscribe for the free weekly newsletter and receive 3 papers about physical precious metals investing