Embry:  “I have been focused on the constant hammering of the gold and silver prices, in the face of news that would be generally construed as extremely bullish.  It’s been par for the course because it’s been going on for over 2 years in the case of gold, and 2 1/2 years in silver....

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“But these markets continue to trade in a counterintuitive manner.  There has been nothing that you could really construe as negative in terms of fundamental news happening for gold or silver in the past 2 years.  We have seen massive QE, political unrest, rapidly falling supply, and very strong physical demand.

None of this is supportive of dramatically lower prices, which is exactly what we have seen.  This suggests to me that the counterintuitive trading action is just a last ditch desperate act to protect the US dollar from its inevitable collapse.

People have to remember that all of this intervention started after the US debt was downgraded by S&P in August of 2011.  Since that time, the gold and silver prices have been under constant pressure.  But there is no question that this manipulative activity will fail.  As a result, people that are getting the opportunity to buy gold and silver and their respective shares at the current bargain prices are going to be huge winners.

But this cyclical bear move inside of this secular bull market has been so hard on people psychologically that I think a lot of people have been driven out of these markets.  It will be tragic for these people that did not have the courage of their convictions to weather this storm.

Right now we have this looming threat that the US government will shut down if we don’t get a budget deal.  If this were to come to pass it would be extremely negative for the already damaged US economy and wildly bullish for gold.  But here is the headline that Kitco trots out, ‘Comex Gold Weaker As U.S. Government Partial Shutdown Looms.’  I don’t even know if these headline writers there (at Kitco) think.  That’s ridiculous.  That’s not why gold is weaker.  The fact is that gold is getting slammed by the powers that be because they are afraid of a development like a partial US government shutdown.”

Embry added:  “I think it’s hilarious, even though I fully expected this outcome, that the CFTC would end its silver probe by doing nothing.  But I think it’s fascinating because JP Morgan has long been thought to be the primary culprit in this.  A lot of people have suggested that JP Morgan has been operating on behalf of the US government, so it certainly didn’t come as a big surprise that this CFTC probe was terminated without any action. 

However, when you juxtapose this with the announcements that are coming out left and right about a spate of other suits against JP Morgan for various market rigging activities in other markets, which they are attempting to settle for billions of dollars, it seems a bit incongruous that the silver market, which is arguably the easiest to manipulate, is just kind of thrown to the side with the CFTC saying, ‘Nothing is happening here.’  This is just preposterous, but that is essentially what happened.”

Eric King:  “John, you have been in this business for 50 years, where do you see the gold and silver markets at this point?”

Embry: “I have never, in the 15 years I have been following this orchestrated manipulation, seen it any more blatant and desperate than it is right now.  The hammering of these markets almost every day is really indicative of the end game and desperation on the part of central planners.

I was fascinated by the KWN piece from Robert Fitzwilson this morning, where he stated that he believes this has Chinese fingerprints all over it.  It’s an interesting theory because the Chinese are long-term thinkers, and I wouldn’t put that past them -- threatening the US with the sale of their Treasuries.

This has meant that the Chinese have cleverly positioned themselves in this chess game in such a manner that has allowed them to acquire cheap physical gold and silver.  If Fitzwilson’s piece is correct, this is really cynical behavior by the Western central planners who have been permitting something like this to happen because the longer-term effects are going to be disastrous for the West.  So I have been thinking about Fitzwilson’s piece all morning and thinking to myself, ‘Good, grief, if this is true the situation for the West is even worse than I thought.’

I would just like to add that I was struck by announcement last week that Walmart’s softer sales are leading them to cut orders with all of their suppliers.  I think that is a huge development because it just proves what I have been saying all along -- that the US economy’s recovery is shallow and totally unsustainable.

Unfortunately, Walmart is America.  This is where a disproportionately high number of Americans now shop, particularly the middle class and those who are less fortunate.  If these people are not shopping, I don’t see how central planners can claim that the economy is strong in the least.

Consumer consumption represents about 70% of US economic activity, and if the consumer is this injured, I can understand even better today why the Fed chose not to taper.  I also believe that the world economy continues to struggle mightily.  And because of the massive quantities of debt that are in the system, and the inability to generate a lot more debt creation, there is no hope for economic growth. 

This means that eventually the massive debt will strangle the West into submission, and it will create a horrific collapse that will shock the world.”

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Eric King

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