John Embry letter to Richard Russell on market manipulation.
<Richard,I have never bothered to contact you before because I have
always felt you must be inundated with correspondence. However, current
happenings in the market are almost to much for me to bear. I have been
in the investment business for over 41 years and have been reading your
work faithfully for over 30 years. I would dare say that you would
encounter very few people who admire your efforts more than I do.
Anybody following your advice in the past 30 years would have made a
great deal of money but more importantly they would have kept it. As a
bit of history, I was born in Washington D.C. in 1941 with an American
father and a Canadian mother and when their marriage failed my mother
retreated to Canada with my brother and I in 1949 and I have made my
life and career in Canada but, having said that, there has been no
greater supporter of all things American than yours truly for virtually
all of my life.
However, something has gone horribly awry in the USA in
recent years. Financially, geopolitically and morally the country has
lost its compass. Which brings me to my subject of this e-mail, today's
markets. It is my firm belief, as you probably already know, that
today's markets are severely manipulated. I have tried to demonstrate in
a recent report the extent of the manipulation in the precious metals
markets but I don't for one minute believe that it is confined to the
precious metals markets. I completely agree with your view that
manipulation can't ultimately succeed but in the short term it can lead
to considerable distortion.
Thus, I believe that you may try to read too
much into what the markets are apparently saying in the short term with
respect to deflation, inflation etc. Nobody knows how this is going to
come out but in a world operating totally with a fiat currency system my
suspicion is that a hyper-inflationary depression awaits us. Thanks for
listening to the rambling thoughts of an aging investor and keep up your
fabulous work until you are at least 100.>
Russell Note -- The writer, the famed John Embry, is the investment manager to the Sprott
Canadian Equity Fund, Sprott Gold and Precious Minerals Fund the Sprott
Hedge Fund L.P., the Sprott Hedge Fund L.P. ll, the Sprott Bull/Bear RSP
Fund, Sprott Energy Fund and the Sprott Hedge Fund L.P. |
