John Embry – Powers That Be Desperately Trying To Keep Confidence Alive In Failing Fiat System

As we wind down the final month of trading in what has been a surprisingly action-packed summer in the gold and silver markets, today John Embry told King World News that all of the market manipulation is a desperate attempt by the powers that be to keep confidence alive in a failing fiat currency system.

John Embry: “The Jackson Hole Meeting has come and gone and little of substance has emerged. That is not at all surprising because the very people who got the world into this mess have no idea what to do now other than produce bogus economic statistics, while manipulating markets and making absurd statements. This is all being done in order to retain confidence in what I believe is a doomed fiat currency system…

John Embry continues: “Fed Chairman Janet Yellen came forward with the requisite garbage post-meeting when she stated that “She sees a stronger case for a U.S. rate rise based on solid consumer spending and a string of payroll gains.” But if one looks closely at the retail sector, it is hard to determine solid consumer spending. And the U.S. labor statistics are an utter embarrassment to rational thought.

To support Yellen’s comments, the usual suspects sold $1.5 billion worth of paper gold on the Comex in two minutes on Friday. This drove the price of gold down over $10 instantaneously. This blatant behavior suggest to me that things are deteriorating rapidly behind the scenes and pretend and extend is becoming more frantic as a result.

I would also add that there have been more rumblings of concern on the pension fund front in the United States, with Puerto Rico and Illinois front-and-center last week. It is really hard to grasp just how bad the situation really is throughout the entire U.S. because many public and private pension funds are already dramatically underfunded and their primary asset categories are historically very overvalued.

I have believed for a considerable period of time that my generation and the Baby Boomers who came in our wake, were going to meet our Waterloo in our retirement years. Nothing I see currently in the pension situation dissuades me from that point of view.

What About The Mining Shares?

Finally, gold and silver have been under pressure and the shares as measured by the HUI Index have undergone a 15 percent correction recently. There is absolutely no fundamental reason for this. I continue to urge investors to buy the physical bullion as a core holding while it is still available. At the same time, the shares still provide remarkable upside leverage at this point, and both categories should be important categories of all legitimate investment portfolios.”

King World News
August 29, 2016