John Embry, quoted in the Toronto Star, on the current monetary environment:
“It’s a shocking monetary debasement,” the veteran fund manager says. “They’re just pouring money into the world. They’re printing money so the debt load doesn’t fall on their heads.” He pauses a moment, his voice growing hoarse, then adds darkly: “This will be reflected in interest rates.” It’s a strange picture: A great economic power busily printing paper money to pay its bills, which already add up to an unprecedented three times its gross domestic product. So far, its creditors and trading partners seem content with the paper notes even though they haven’t been backed by bullion for years and pay hardly any interest.
But that will change, Embry believes. When it does, it could spark a crisis of confidence in the U.S. dollar and paper money generally. Then real money — gold and silver bullion — will prove its enduring worth.
and
Surely the difference is inflation, which nearly spiralled out of control in the 1970s and is barely discernible now. “That’s the biggest lie on earth,” Embry says with obvious disgust. “Inflation is all over the place. They just don’t compute the numbers right.”
