Today a man who has been involved in the financial markets for 50 years spoke with King World News about the endless mainstream media and government propaganda and what will send the gold price soaring.  John Embry, who is business partners with billionaire Eric Sprott, also discussed the incredible action that is taking place in the crude oil markets and how that will impact the world.

Embry:  “What went on in the wake of the U.S. Jobs Report on Friday continues to irritate me.  The headline in the New York Times on Saturday read, ‘Big Job Gains And Rising Pay In Labor Data.’  I love the New York Times but in some ways it’s just another sophisticated mainstream media propagandist.  And basically you have to filter out a lot of the misinformation that’s masquerading as news in their articles….

Continue reading the John Embry interview below…


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“In that headline article they quoted some obscure economist who I’ve never heard of who stated that ‘The job numbers were spectacular and more to the point, believable.’  He went on to say, ‘We’ve had strong hiring indicators in a number of surveys and lower jobless claims.  So sooner or later we were going to get a blockbuster number.’

This is pathetic and it makes one wonder if this guy is naive or just bought and paid for?  As an economist, aren’t you supposed to analyze the numbers that you are given rather than just repeat them verbatim?  When you get inside the numbers there were dubious seasonal adjustments, the supposed job creation was essentially at odds with what the household survey showed, there was a large loss of permanent jobs, and the vast majority of new jobs were poorly paying ones.  

However, an even more important consideration with respect to future job creation in the U.S. is the virtual collapse in oil prices.  This is going to have a severe negative impact on the fracking industry, which has been a huge contributor to what job creation that there has been in the United States since the global financial crisis.

I was disappointed when the Vice Chairman of the Fed, Stanley Fischer, said that the lower oil price was ‘a phenomenon that’s making everybody better off.  Sure the consumer is getting a much needed break and may be able to buy a few more Chinese imports and marginally improve his diet, but the lower oil price will extract a toll on those areas that have been booming because of the explosion in fracking.

In addition there are considerable financial implications because fracking requires extensive financing, and close to 20 percent of the junk bond market in the U.S. is exposed to oil prices at this point.  Like everything there are positive and negatives, but in a massively over-levered world this kind of volatility in the world’s most extensively traded commodity is surely not a positive.

Expanding on that point, central bank rhetoric can get really tiresome.  The head of the Bank of Canada, Stephen Poloz, stated last week that ‘The Canadian economy had turned the corner in a positive way due to the building strength of the U.S. economy and the weakness in the Canadian dollar.’  Now, the first supposition is wrong as I have talked continuously about the bogus U.S. economic statistics which I believe are directed at strengthening the U.S. dollar.

The second reason he made has some minor merit.  The weaker Canadian dollar does improve our terms of trade a bit, but what was left unsaid by the head of the Bank of Canada is that the sharp decline in oil prices is going to have a dramatic impact on Canada’s most vibrant provence, Alberta.  It will offset any minor positives occurring elsewhere.  So these guys just continue to try to sell a positive story that I don’t think is justified.”

Embry added:  “Gold and silver remain in extreme lockdown below key technical levels, but I have no doubt that the next major move will be higher.  I enjoyed the KWN piece from Michael Pento and his comments about the anti-gold rhetoric emanating from the powers that be.  Trust me, they wouldn’t be talking so much rubbish unless they knew they had a huge problem. 

The fact is that China, Russia and other Eastern entities, are taking control of the physical gold market as we speak.  And when the transfer is complete, prices are heading up at an accelerated pace.  For right now people just need to be patient and continue to accumulate at these highly discounted price levels.”

IMPORTANT – KWN has many more interviews being released today.

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The audio interviews with Stephen Leeb, Andrew Maguire, John Embry, Gerald Celente, Rick Rule, Bill Fleckenstein, Ben Davies, Greyerz-Turk-Stamm, David Stockman, William Kaye, Eric Sprott, Rick Santelli, John Mauldin and Marc Faber are available now. Other recent KWN interviews include Jim Grant and Felix Zulauf — to listen CLICK HERE.

Eric King