With economic conditions continuing to deteriorate, this is a terrifying statistic.
John Embry: “Eric, things certainly get more interesting by the day, although you would never know it by the action of the markets because they almost seem to be on autopilot…
Continue reading the John Embry interview below…
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John Embry continues: “Last Friday’s jobs number, which shocked many mainstream observers, was one of the first that came somewhat close to reflecting reality. However, I believe it was still overstated because of the dubious nature of the birth/death calculation of new jobs and small businesses, and the requisite seasonal adjustment to further distort the truth.
In any case, last Friday we had a one day spike in precious metals prices as a result of the jobs release, and some initial pressure on the Dow. But both were quickly addressed by the usual suspects, with gold come under renewed selling pressure as the Dow reversed and moved higher. The recent gold action has been particularly bogus in the face of a weaker dollar.
Another factor which I haven’t been giving sufficient attention to is the upcoming presidential election in the United States. Those behind the curtain very much want the Democratic candidate to be elected, rather than the upstart, Trump. Thus the public has to be convinced that the current Democratic administration is doing a fine job and that the economy is in fine shape, even though neither is remotely true.
This Is A Terrifying Statistic
That is the reason for the ridiculous economic statistics, which reached new heights of absurdity with the latest unemployment number falling to 4.7 percent, despite the pathetic job creation numbers. This is a terrifying figure, but keep in mind that the roughly 94 million Americans of working age currently without jobs can’t be allowed to interfere with the propaganda.
I also remain fascinated with the current levitation of the U.S. stock market, despite its historical overvaluation, worsening fundamentals and weak technical condition. One of the few technicians I respect recently noted that for the first time in 6 years his long-term indicator with an excellent track record generated its first directional change at the end of May.
This was the first sell signal since September of 2008, and that preceded a 4,400 point drop in the Dow. That was subsequently followed by a buy signal in May of 2010, which triggered the current 80 percent advance. So all I can say is that the PPT (Plunge Protection Team) now has its hands full and investors must be very wary about stocks.
Tick-Tick-Tick
But what may not be well understood by a lot of people are the implications of a sharp drop in the price of stocks, bonds and real estate, all of which are currently experiencing historic bubbles. These also comprise the vast majority of assets in pension plans. Many pensions are already seriously underfunded and a collapse in the prices of their primary assets would be catastrophic. A very prescient observer recently stated that ‘The most endangered species is the pensioner,’ and I totally agree.
Switching gears to the precious metals, the HUI Gold Share Index continues it strong relative performance, despite the recent weakness in gold and silver prices generated by massive amounts of paper shorting. I think the gold share index represents the true harbinger of what is to come in this sector, and I encourage investors to remain patient as this plays out.”
***Also just released: ALERT: James Turk – We Just Witnessed A Huge Wakeup Call For The World CLICK HERE.
***Andrew Maguire’s remarkable KWN audio interview has now been released and you can listen to it by CLICKING HERE OR ON THE IMAGE BELOW.
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