John Embry: Credit-Creation Mechanism Appears to be Broken
Source: John Embry, Sprott Asset Management (4/21/08)
Make no mistake, there is a concerted effort to suppress the gold price. The central banks are worried about the message being sent by a sharply higher gold price while their bullion bank allies are agonizing over mounting losses on their outlandish short positions.
In the early part of 2008, gold and silver responded powerfully to the economic and financial turmoil unfolding in the U.S. Gold reached an all-time high of just over US$1,030 on March 16, while silver comfortably exceeded US$21 per ounce for only the second time since the Hunts attempted to corner the market in the late '70s. However, both metals soon ran into a brick wall as the anti-gold gang made yet another stand. Read the entire article
(courtesy of Investor's Digest).