John Embry: Getting Closer to an Upside Silver Explosion – “Shadow of Truth #20″

TND Podcast Spotlight:  Shadow of Truth, The Daily Coin

This blatant market manipulation activity to me suggests there’s something worse going on behind the scenes than you and I think…All i can see is increasing volatility in the system…this is blowing a hole in derivatives. Given how intrusive derivatives are on bank balance sheets there has to be problem that they are trying to cover up.  – John Embry, Shadow of Truth

Rory and I hosted a conversation with John Embry on our Shadow of Truth program.  We covered the blatant and ongoing market intervention by the Fed/Government, the movement toward getting rid of cash currency and converting the monetary system into one which is based fully on electronic currency, the precious metals market with an emphasis on silver and Jade Helm 15.

All aspects of the Federal Reserve’s and U.S. Treasury’s (Working Group on Financial Markets) – together known as the Plunge Protection Team – market intervention has been overly blatant and obvious to even the casual observer.  I’ve had several non-market professionals remark to me that the markets seem completely artificial and out of touch with reality.   It’s seems like every time there’s a big sell-off in stocks, like yesterday (April 30), it’s always followed by an even bigger move higher the next day.   Furthermore, without question the stock market is increasingly becoming disconnected from the underlying economic fundamentals.

(Note:  U.S. Macro measures the difference between consensus estimates for the economic data and the actual data as reported).   Given the indisputable failure of QE to stimulate the economy and the current stream of economic data which shows that economic activity is deteriorating at the same rate now as it was just before and during the 2008/2009 de facto financial collapse our the U.S. banking system.    Eventually the two lines in the graph above with converge once again.  Unless the central planners manipulating our system can pull of a spectacular miracle and generate tremendous economic growth, the downside convergence of the S&P 500 with the underlying macro fundamentals will make the 1929 stock crash seem like a sunny day in Mr. Roger’s Neighborhood.

If gold and silver actually reflected their true value it would basically create a problem in the sense that people would realize that the current monetary policy is ridiculous and this whole thing would come to an end.  – John Embry, Shadow of Truth

Perhaps the most flagrant and undisguised market intervention is occurring in the precious metals market.  Even mainstream reporters are starting to make off the cuff remarks about this.  Anyone who refuses to acknowledge the extreme manipulation of gold and silver via the Comex and LBMA paper markets is either obtusely ignorant or has a financial motivated reason for feigning ignorance.

The eventual upside of silver, to me, is why all the pain is worthwhile.  As long as you are not playing with the sharks in the paper market and getting cleaned out on a regular basis and you’re using this opportunity to acquire physical silver, I think you are going to wake up in the not too distance future and be shocked at the magnitude of the price gain.  – John Embry, Shadow of Truth

In conjunction with the Government’s growing control of the financial markets is an equally disturbing movement by the elitists running our system to eliminate cash currency from the banking system.    Given the general proclivity of most people to use credit and ATM cards to pay for almost everything, this development would likely and predictably receive little to no resistance from the majority of Americans.

But the truth is that expunging cash from our lives is part of the movement by the Government to implement totalitarian control over the system.  With a fully electronic banking and payment system, the Government will be able to track 100% of your expenditures.  Now the the NSA has the ability to monitor your phone calls, emails and movements (GPS), eliminating cash currency removes any remaining element of privacy of anonymity from your life.

It gives them more control if they can remove cash from the system, I think its more easy for them to monitor things…but I think it’s an extraordinarily negative develpment, I’m just horrified by the whole process.  – John Emby, Shadow of Truth

Furthermore, it enables the banks to suck even more wealth out your pocket in the form of a negative interest rate on your electronic checking and savings account balances.  It’s no coincidence that “economists” like Willem Buiter and Paul Krugman are advocating the death of cash, as they believe significantly negative interest rates are required to stimulate economic growth – at least that’s their story.

Think about this way:   If a banks takes its interest paid negative, it means the banks takes money from your positive account balances every month.   If you have the option of withdrawing cash,  you can at least avoid this expense by holding your money in cash.  You won’t be earning interest but you won’t be charged to hold a positive currency balance at a bank.   But eliminating cash from the system takes this option away.   This is why the bankers are promoting the death of cash (Willem Buiter is the chief “economist” for Citibank).  It’s another mechanism by which the banking elitists will  be able to steal your money.

Finally, we wade in the murky swamp water known as Jade Helm 15.  Notwithstanding the plethora of extreme conspiracy theories circulating the internet, Jade Helm is a military/special forces training exercise that is designed to prepare the military for an eventuality of widespread civil unrest.  Civil unrest that will likely be triggered by financial and economic catastrophe headed toward our system.

We think you will find our conversation with John Embry highly informative and engaging.  In my opinion, this is one of John’s best interviews in quite some time, with a surprise question at the end:

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About Dave Kranzler:

 I spent many years working in various analytic jobs and trading on Wall Street. For nine of those years, I traded junk bonds for Bankers Trust. I have an MBA from the University of Chicago, with a concentration in accounting and finance. My goal is to help people understand and analyze what is really going on in our financial system and economy. You can follow my work and contact me via my website Investment Research Dynamics.  Occasionally, I publish on Seeking Alpha too. As a co-founder and principal of Golden Returns Capital, LLC Mr. Kranzler co-manages the Precious Metals Opportunity Fund, a metals and mining stock investment fund. 

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