Embry:  “I’m focused on the pathetic reporting on the gold market in the West.  This morning Reuters was saying that the gold price was down because of the good economic numbers reported on Friday in the United States, and Chinese selling.  I do not believe for a moment that the Chinese are selling any physical gold....

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“And if somebody is messing around in the paper market over there, it’s just the same as the paper market anywhere else.  So that was irritating, but then when the gold price turned around and went positive, another one of these ridiculous reports said it was up on ‘bargain hunting.’

These outfits are not identifying the real reason.  Gold is the thing that people should be buying right now because all of the other financial assets are seriously overvalued.  Yet we get this crappy reporting that keeps people away from the gold market.

Last week the gold market was down sharply in two occasions:  One was when the West reported that Putin was backing down, which he wasn’t at all.  That crisis is as hot right now as at any point since it began.  The second time gold was taken down was right after the 175,000 U.S. jobs number on Friday.  They took gold down another $25 at one point after that number was released.

I don’t believe that jobs number for a minute.  They can produce any number they want, and they had to have a good number because the U.S. dollar was breaking down.  So the interference in the gold market is probably as blatant as it has been in the last 20 years. 

This has created an artificial discount in the gold market for buyers such as the Chinese, who fully understand what’s going on here.  Smart money is also buying silver and the gold and silver mining shares because they know they are going to make a fortune.  It’s just a question of being patient and using whatever cash flow you’ve got to top up your positions.

Right now the Western central planners are desperate.  When you start looking around the world, things are deteriorating rapidly.  Japan just came out and said they have the worst current account deficit on record.  The GDP growth they just reported was the worst since Abe took over as prime minister.  So this idea that the Japanese can inflate their way out of a very difficult economic situation is simply wrong.

If we take a look at China, most people are underestimating the economic and financial issues over there.  When you’ve had the debt expansion to the extent they’ve had since the onset of the global financial crisis in 2008, it is extremely dangerous.  The Chinese have created mountains of debt.

The vulnerability becomes more apparent as the economy slows, and there is absolutely no doubt that is occurring right now.  The Chinese economy is slowing.  So when you superimpose this with what is going on in Europe and the United States, neither of which have the alleged recoveries that people are talking about, I see no vitality in the world economy.  So people need to put aside the mainstream media propaganda because the world is headed for disaster.

And with the amount of debt that’s in the whole system, this creates an enormous problem for the central planners.  But the one thing they can’t possibly entertain is higher interest rates.  So one of the reasons they are sitting on gold and silver prices is because if gold and silver really reflected the true condition in the world, interest rates would rise sharply and it would be game over.  So that’s the problem Western central planners are facing, and they will lose, it’s just a matter of how much time it’s going to take.”

Embry also cautioned about the Ukraine crisis:  “When it comes to the Ukraine situation, I think the West is underestimating how important this is to Russia.  Putin is on record as saying the worst thing to happen in the last century was the breakup of the Soviet Union.   It was the worst thing to happen to him in his life.  So anyone who thinks Putin is going to go away quietly when it comes to Ukraine is simply wrong, and I don’t think people should take this situation lightly.”

Embry added:  “I saw a fascinating headline in USA Today on Friday.  It made me laugh.  It said, ‘We are $9.8 trillion richer.’  So I read the article and it said that wealth in the U.S. expanded by $9.8 trillion last year, or 14%.  The vast majority of those gains came in the stock market and the real estate market.

Well, this isn’t wealth, this is basically manufactured paper wealth.  We’ve seen this act before.  This is what led up to the tech bubble burst in 2000, and this time it’s going to end exactly the same way.  You’ve got record margin debt and the stock market is very overvalued by virtually any metric, and it’s all a paper game.

This is going on at the same time the Fed is talking about reducing QE.  If the Fed does continue reducing QE the market will collapse.  But if they don’t do it, we are probably on the road to hyperinflation.  So I think they’ve got a major problem.  The bottom line is investors need to put aside the Western propaganda and understand the best way to protect themselves is by owning physical gold, silver, and the respective shares.”

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