Wednesday, November 25, 2009

No Recovery Dummies!

It's late but this is a must read from John Embry of Sprott Asset Management! Is anyone out there listening? No 'recovery' dummies!

I especially appreciate the following quote:

"In my opinion, the current equivalent of the mythical Four Horsemen of the Apocalypse are
our financial leaders in the western world who are enthusiastically promoting and aggressively implementing quantitative easing in an attempt to sustain an obviously failed system and to bail out their banking cronies. They would include the atavistic Lawrence Summers, President Obama’seconomic guru and a key figure in the gold suppression scheme, the extremely naive Fed chairman,Ben Bernanke; the truly feckless U.S. Treasury Secretary, Timothy Geithner and Bernanke’s British equivalent, the hapless Mervyn King, head of the Bank of England. To be fair to the latter, he has partially redeemed himself in my eyes by recently calling for a breakup of the largest British banks, a move that drew a frosty response from British Prime Minister Gordon Brown. I’m on the side of anybody opposing Brown,who is the true villain in the British saga and one of the world’s great hypocrites.There is absolutely no doubt in my mind that what these gentlemen are trying to engineer is going to end in an utter debacle. Any serious attempt to withdraw the stimulus at this point will trigger a deflationary depression and a continuation of the current policies will put us firmly on the road to hyperinflation.The futility of this was foreseen in the middle of the last century by the father of Austrian economics, the brilliant Ludwig Von Mises, who correctly observed that:
“There is no means of avoiding a final collapse of a boom brought about by credit expansion. The alternative is onlywhether the crisis should come sooner as the result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system.”

Click on John

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