SoT #52 John Embry: The Public Has Been Set Up For Slaughter – It Doesn’t Have A Chance

One of the things that has bothered me a lot is the cognitive dissonance amongst – not the public, the public doesn’t have a chance, they’re being lied to constantly by the media – but what I find distressing is the cognitive dissonance amongst financial professionals. – John Embry on Shadow of Truth

The precious metals sector has been under violent manipulative attack since gold and silver peaked in price in 2011. The western Governments and Central Banks had no choice but to attack real money because it would be the only way that they could continue implementing their ultimately catastrophic monetary policies in order to prevent systemic collapse.

But as Ayn Rand asserted a long time ago, you can ignore reality but you can’t ignore the consequences of ignoring reality. It is likely that the move by the Chinese to begin devaluing their currency is an acknowledgement of this reality and it represents China’s attempt to get a head start on the rest of the world in order to minimize the consequences it will suffer relative everyone else.

The surprise move by the Chinese to devalue the yuan is a “signal event” because basically it’s going to lead to currency debasement everywhere – it’s going to expose everyone else. What could be a better advertisement for gold and silver?…When this finally explodes [gold] it’s not going to go up $50 or $100 bucks it’s going go up massively because the whole paper Ponzi scheme will be exposed. – John Embry

We have never in history witnessed extreme systemic imbalances in the world financial economic system to the extent that they are now occurring.  As an example, Mr. Embry referenced the fact that, “The U.S., Japan and Canada have 52% of the Federal funded debt in world and they have only 7% of the population base.”

One of the things that has bothered me a lot is the cognitive dissonance amongst – not the public, the public doesn’t have a chance, they’re being lied to constantly by the media – but what I find distressing is the cognitive dissonance amongst financial professionals. – John Embry

Finally, there’s a massive trade to be had in the gold and silver stocks, assuming our worse scenario does not play out. That is to say that the mining stocks have never been cheaper relative the price of gold and silver than they are now.  In fact, I would venture to say that it might be the most undervalued market sector in history right now.

Of course, the “worst scenario” is the scenario that hits our system in which you wished you were watching the collapse from another planet…

7 thoughts on “SoT #52 John Embry: The Public Has Been Set Up For Slaughter – It Doesn’t Have A Chance

  1. Dave:
    Do you think that Musk and his recent (today) announcement to reinforce confidence in Tesla is on parallel with AMZN . con?

    1. Tesla is WORSE than AMZN when it comes to sleazy accounting. That Company is a bigger cash incinerator than AMZN. Musk has made billions exploiting the stock bubble. A $20 million kick into the $500 million offering is not “support” at all. It’s not even big enough in relaiton to his liquid net worth to be considered “the cost of doing business.”

      The people running mutual funds and pension money – aka other people’s money – should be shot in the head for buying this deal. The lack of due diligence and big investors holding companies accountable is simply stunning.

  2. Usually there are half a dozen good “sound bite” quotes in every SOT conversation. Well, the ENTIRE conversation you just had with John Embry was nothing but GREAT sound bites. So much clarity of thought. Bravo guys.

    If I had to pick one quote that truly resonated though, it was Embry’s comment that “there is no longer any middle-ground” when it comes to the markets. You are either blissfully in the general markets and positioned for a slaughter or you are suffering through an excruciating to hold, but eventually right-sided position. When Embry said the “no middle-ground” comment, I just about fell out of my chair, because I’ve said those exact same words to my wife several times now over the past few months.

    All the canaries are now muted and there won’t be a warning ahead of the calamity. Those in control have gone all-in to keep the paper game going. I made the mistake of thinking that every man, no matter how corrupted, holds on to some modicum of humanity. I thought for sure they’d at least try to leave some remnants of a real economy intact in the West, some actual assets and PM reserves untouched. I figured that when they realized they couldn’t combat the actual market forces, they’d eventually throw their hands up and try to at least keep the remaining scraps of economic capital in their cupboard. But no, they have bet and are betting it ALL. …And just to have a few more years/months of power and influence. Like you, I fear the human collateral damage that will result from the truly historic pride and denial currently being flaunted.

  3. I agree with John Embry. Only when gold will make wild upswings the whole crap will fall down. Until then the financial fascists have more or less everything under control.

    The black swan has already arrived. It is the fall of oil prices which continues unabated. Everything else like the Yuan depreciation is just a consequence. The falling oil price itself stems from overleveraged producers causing oversupply and a lack of demand. Oil will see a 20 handle the next few years or even months.

  4. In the annals of money this is the most radical period of monetary experimentation in all of human history.

    Most thinking persons with any reasonable grasp of history rightly believe this economic ponzi scheme is doomed to collapse, yet few of us consider the possibility that the monetary experiments underway could actually work; by that I mean they could postpone the inevitable crack-up boom for far longer than anyone could ever imagine possible, even perhaps beyond our lifetimes.

    So long as the price of gold remains under the thumb of the controllers of the rigged casino and held hostage in their lab as one of (many) ongoing experiments in central planning and market rigging, gold will never again be a reliable signal nor will the price ever respond to the market.

    The way I see it, the only way gold rises much beyond its current level is if it’s liberated, and that will never happen voluntarily by those in control who who hold it captive.

    Therefore, the only way gold goes significantly higher from here is in a jailbreak scenario where the controllers are overrun and lose control of the machine, and the paper ponzi breaks apart or blows up in a cataclysmic disaster.

    If the above theory has any merit and holds true, then the gold price will not gradually rise over time in a measured response to supply/demand fundamentals, economic crisis or geopolitical tensions, because it won’t be allowed to do that, instead the price will either do nothing … indefinitely … or it will lurch forward in a series of successive chain reaction explosions higher, where it literally goes from affordable and available to simply unavailable at any price … and illegal.

    As a result, gold will likely remain either a poor performing investment over our lifetimes, or it will become an invaluable insurance policy that literally saves our lives. It will be all or nothing. Probably no middle ground for gold in the future.

    ~ Zen

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