Embry:  “We just hit a new high on the S&P today. I can’t say I’m surprised because there’s been so much intervention in these markets as they attempt to maintain confidence in the system.  All the economic releases in the United States are being falsified....

Continue reading the John Embry interview below...


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“I ran into a guy in the gym this morning who is the overnight trader for one of the banks here in Canada for the commodities.  He said it was the slowest evening of trading he can ever remember.  That was indicative of the fact that there is not much going on.  So in that environment the powers that be can keep prices under control, which they have to do to maintain confidence.

Also, I noticed they reduced margin requirements on the Comex for gold and silver late last week.  Now why in God’s name would they do that?  Silver open interest is near record levels.  Generally when that is the case they increase margin requirements in order to reduce the speculation.

I just think they are providing more firepower for the bullion banks in their constant effort to control prices and keep this thing under control in both the gold and silver markets.  There was a terrific piece put out discussing the trading patterns in the silver market.  It’s amazing that for the last 84 days the opening of the access market for silver trading has been down 80 days.  So silver has opened down 80 out of 84 days and it has opened down for the last 24 straight trading days.

That is not natural trading.  This is manipulation of the worst sort.  This has kept the silver price at unbelievably low levels.  Most silver mines would lose money trying to dig it out of the ground at less than $20.  So this is an unsustainable situation.  But the fact that the price action is so grim really works to the advantage of the manipulators because it helps to keep the public away.  The counterintuitive price action just drives them away and they go into the stock or the bond markets because they are still going up.  This will all end badly but until it does it’s frustrating to watch.”

Embry added:  “I was fascinated by the Jackson Hole Conference last week.  I thought it was an embarrassment to rational thought and it proved that our central planners have no realistic solutions to the unholy mess they’ve created.  To say that Janet Yellen is in way over her head as Chairman of the U.S. Fed is a classic understatement.  And her utterances both during and after the Jackson Hole session were pathetic.

I always loved this quote from Ludwig von Mises where he warned about the type of situation that the world is facing today.  He said:

“There is no means of avoiding the final collapse of a boom brought about by credit expansion.  The alternative is only whether the crisis should come sooner as a result of the voluntary abandonment of further credit expansion, or later as the final and total catastrophe of the currency system involved.”

Embry continues:  “That is a brilliant quote and it’s absolutely applicable today since this is without question the largest and most abusive credit cycle in the history of mankind.  And I don’t think central planners have any appetite for voluntary abandonment of further credit expansion.  So it would appear that we are headed for a currency system Apocalypse.  This will result in some form of hyperinflation and unmeasurable human suffering.”

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The audio interviews with Dr. Philipa Malmgren, Gerald Celente, James Dines, Michael Belkin, Dr. Paul Craig Roberts, Andrew Maguire, Art Cashin, Michael Pento, MEP Nigel Farage, David Stockman, and Marc Faber are available now. Other recent KWN interviews include Jim Grant and Felix Zulauf -- to listen CLICK HERE.

Eric King

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