Friday, September 02, 2016

Dr. Paul Craig Roberts & John Embry

Sep. 2, 2016
Featured Guests
Dr. Paul Craig Roberts and John Embry
                        

Summary

  • John Embry, Senior Strategist at Sprott Asset Management returns with key insights into the startling 2016 PMs market rally.
  • The recent pullback represents a discounted buying opportunity within a new long-term bull market.
  • Once gold breaks out of the consolidation in terms of the US dollar, the de facto reserve currency, the bull market will continue.
  • China's official 3,000 ton gold reserve figure at the PBoC may be vastly understated; the true stockpile could represent the largest worldwide.
  • A recent article by Koos Jansen shows that China's top banks likely hold massive gold reserves, the traditional asset of choice.
  • The discussion includes "Bond King", Bill Gross, who may soon earn a new royal title of "Gold King."
  • The financially savvy professional seems to be losing his appetite for bonds in favor of gold.
  • The duo suggest that the billions of dollars / currencies held in paper form should be shifted into safer alternatives, such as bullion, and mining shares.
  • The world's most useful precious metal, silver may eventually outshine its rivals, sporting one of the most enviable investment valuations.
  • Once gold ascends to it's rightful place as king of currencies, the gold / silver ratio will return to 10:1, sending silver into the triple digits.
  • The Irish Times reported that the Bank of Ireland is now charging for the right to deposit funds, making home safes much more desirable.
  • Sales in home safes are soaring across much of Europe, ground zero of the ECB negative saving rates.
  • Senior Research Fellow, Dr. Paul Craig Roberts rejoins the show.
  • The bullion banks have "An infinite stockpile of naked gold shorts, driving down the price."
  • The shorting machination began in 2011, culminating in the 2016 gold rally.
  • An underground international bank transaction clearing system is jeopardizing US dollar hegemony;
  • "If the system gets up and running, big banks will no longer require dollar reserves."
  • The end game is obvious; inevitably market forces must establish equilibrium, sending the PMs skyward.
  • Eventually, higher rates will cause an economic depression of epic scale.
  • The recent US jobs number may be skewed by false assumptions, i.e., Seasonal adjustments making the recent 277,000 job number suspicious.
  • The participation rate, or number of folks working, continues to decline on an annual basis, suggesting bogus BLS numbers.
  • Most new part-time, service jobs offer few perquisites as the deterioration in the labor force continues in earnest, resembling"...a 3rd world economy."
  • The disturbing social theme is emblematic of the difficulties facing young couples attempting to establish and maintain households.
  • "More than half of US 18-25 year olds live at home, while most of 25-34 bracket live at home due in no small part to limited job prospects...
  • A final leg holding up the entire domestic edifice is the artificially low rate environment.
  • Near zero rates boosts home prices, making refinancing simple vis–à–vis debt securitization.
  • The strategy will work until either debt availability lessons or the housing bubble bursts.
  • When inflation is properly included, the real GDP has been essentially flat to negative since 2000, representing the deepest depression in national history.
  • Without manufacturing jobs, the tax base collapses, and inevitably, the currency / economy.
  • No market is free due to manipulation and easy debt. For instance, stock P/E's are high on a historical basis, primarily due to Fed based excess liquidity.

Show Host
Chris Waltzek
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