Widening differences.

We are starting to have wide differences in forecasts, earnings and opinions on predictions.

Larry Edelson vs John Embry.

Larry is doubling down on his forecasts for a drop in gold and especially silver prices. In his opinion, economic and financial matters will have to get very desperate and then the FED and the ECB will have to act in concert at easing and that will propel the gold prices and inflation.

John Embry is forecasting a looming shortage in physical gold maybe as soon as August, which will propel the precious metals and mining shares. These people have long histories in the business. Why the diametrically opposite views?

The rating agencies also differ.

Moody has downgraded the outlook of France and Austria in February. This was followed by a downgrade in outlook for Germany, Netherlands and Luxembourg, leaving Finland stable.

Standard and Poor has left all four alone and reaffirmed their Aaa rating.

Meanwhile Italian 10 year notes hit 6.337% today (up 2.77%) and Spanish rates hit 7.498%, up 3.18%. Spanish regions are being downgraded, because they are out of money.

Some German figures.

They talk lightly of Greece leaving the EU and quitting the Euro. These folks are whistling Dixie( more precisely, they are whistling Deutchland, Deutschland über alles). The moment Greece leaves the Euro, it will default on its loans and there go a whole bunch of banks. That will be very costly.

Is Larry right that the ECB will wait untill the EU is in tatters to print? Spain and Italy need cash infusions big time and Germany, Holland and Luxembourg do not have enough to do the rescue. Only the ECB can do a rescue or the ESM can be raised to the status of a bank. What is plain to Larry is also obvious to every one else.