With continued uncertainty in global markets, today a 50-year market veteran warned King World News that the world economy is in deep trouble but he also said that it’s all part of the big manipulation.
October 7 (King World News) – John Embry: “Last Friday, Eric, the price of gold shot up in the wake of a very disappointing jobs number in the U.S., which was materially lower than every economist’s prediction. But gold was rallying from $50 lower than the high of the previous week…
Continue reading the John Embry interview below…
“But if gold hadn’t been taken down hard last week, the lousy jobs number would have sent the price of gold to at least $1,200. This would have attracted even more attention from investors. Regardless, I am very encouraged by the recent action in the silver market. It’s very healthy for silver to be leading the metals higher.
For people who follow the market as closely as I do, last week’s rally in gold as well as the one in the previous week were both capped at 2 percent gains. So anybody who can’t see the manipulation in the metals markets has their eyes shut.
The Big Manipulation
But this is all part of the bigger undertaking by the authorities in order to keep stocks and bonds elevated in their ever expanding bubbles. These assets form the collateral in a disastrously over-leveraged financial system. And a significant decline in both would obviously jeopardize the highly-levered global banking system, whose balance sheets are polluted with bad loans and mispriced derivatives.
But coming back to the jobs number, it just confirmed what is really happening in the United States, rather than the bogus numbers that the government churns out. Now looking inside the number, which I think is chronically overstated to begin with, manufacturing jobs were being lost, while jobs for waiters, et al., proliferated. So this is not exactly a wealth creating situation.
94.5 Million Americans Jobless & World Economy In Deep Trouble
Perhaps even more significant was the fact that the number of non-working Americans has reached a new high of 94.5 million and the Labor Participation Rate plunged to a low last seen in 1977 when there was only one income supporting most families.
So I think it is important, Eric, that your readers understand that the world economy is in deep trouble because additional debt can no longer support growth. This point has long been forecast by those who believe in the Austrian School of economics. The massive new quantities that have been created since the global financial crisis have done nothing more than keep the system afloat and ensure an even worse ending.
As The World Deteriorates You Must Protect Yourself
Now compounding matters, the geopolitical front is deteriorating rapidly as well. The U.S. looks inept on the foreign front as Afghanistan is becoming a major problem once again. And the Middle East is a nightmare for the U.S. as Vladimir Putin has gained the upper hand with his actions in Syria. I think it is important for people to keep a close eye on this war because it is potentially explosive.
In closing, I must once again reiterate that physical gold and silver are by far the safest assets to hold at this point. And their respective share possess the greatest upside potentials in the history of the sector. The fact that very few people share this view only reinforces my resolve.” ***ALSO JUST RELEASED: China’s Stock Market Closed As Gold And Silver Surge Continues, But Here Is The Real Surprise CLICK HERE.
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