Embry - $67 Trillion Shadow Banking System & $10,000 Gold

"...So Keith Barron is correct because the problem is twofold: Existing production is going to go down a lot. So for the major mining companies, to achieve growth, not only are they going to have to replace existing production, which will fall significantly, but they will have to replace that plus even more development.

The problem is that with the current gold price and what has taken place in the share environment, I don’t see any possibility of that taking place. One of the great pieces of misinformation that has been spread by the agents of the people suppressing the price of gold, is that at these higher gold prices we would experience a boom in gold mining. Nothing could be further from the truth.”

Embry also added: “If you stop to think about it, Eric, the fact that the gold price is currently $170 lower at the end of August of one year ago, given what has gone on with respect to QEs, wars, and financial implosions, it’s preposterous that the gold price is where it is.

But it shows the power of paper, and that’s the reason we have all of these derivatives because you can control markets quite effectively, until you can’t. At that point the price of gold is going to go crazy. Thing about the fact that the shadow banking system is $67 trillion, and the leverage that creates in the system. I just think that the ‘end’ of this is going to be horrific.”

 

at http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/11/19_Embry_-_$67_Trillion_Shadow_Banking_System_%26_$10,000_Gold.html