With the price of gold and silver soaring, today John Embry told King World News there is going to be a continued massive surge in the gold price, but the gains in silver will be “historic.” Embry spoke at length about the gold and silvermarkets, the Fed and the mining shares. Below is what Embry had to say in this powerful interview.
Embry: “I’m focused on the better tone in the gold and silvermarkets. It’s been a long struggle, but with all of the information that’s come out recently regarding how tight the physical market is and the fact that the paper gold market really is one of the greatest Ponzi schemes of all-time, I think we could finally be on the cusp of a huge move in gold….
“I’m not talking $100 to $200 move for gold. I mean gold going back to the old high of $1,920 in a fairly short period of time.
One thing that drove me crazy last week was Bernanke’s testimony and some of his statements after the fact. Gerald Celente noted that Bernanke said if the Fed wasn’t continuing to print money, that the economy would ‘tank.’ That’s exactly what all of us have been saying on KWN for months, if not years.
But it’s interesting that Bernanke basically said as much himself, and nobody picked up on it. Bernanke was asked by one of the Congressmen if he was printing money, and he answered, ‘not literally.’ Now what does that mean? If you are creating $85 billion a month to buy Treasuries and bad bank mortgage debt, if that’s not printing money then nothing is.
Today David Stockman warned King World News that there is a great “unwind” ahead that will “ricochet” violently through all global financialmarkets. Stockman also predicted there will be a worldwide flight to gold during the coming panic which will eclipse the mania seen in gold in 1980. KWN takes Stockman’s warning very seriously because he is the man former President Reagan called on in 1981, during that crisis, to become Director of the Office of Management and Budget. Below is what Stockman had to say in this powerful and exclusive interview.
Stockman: “The markets are just irrationally thrashing around in response to a Fed that has lost control of policy. They have been working their way to the edge of a cliff, I think, for years now with this massive money printing, bond buying, and zero interest rates.
They are saying through 2015 we are not going to tighten the short-term interest rate, which means it will be zero for (a total of) six years. That is just crazy, almost lunatic….
“Therefore, the markets no longer function as honest capitalmarkets or money markets. They are simply a lot of boys and girls and algorithms running around trying to trade whatever they think the Fed is going to do next based on word clouds and these massive daily purchases.
So we have a totally broken financial system and we can expect this kind of turmoil in every one of the major securities markets to get worse as we move towards the final blowoff of this third bubble that we’re in in the 21st century … and it’s only a matter of time before this one blows as well.
As a reminder, it was Zero Hedge who broke the news in March about the location of JPM‘s vault, namely that it can be found 90 feet below street level at 1 Chase Manhattan Plaza (located over half a mile away on Liberty and William Streets). Which is relevant, because as the FDNY reports, and as the video clip below vividly confirms (with the Federal Hall National Memorial distinctly visible in the background), the fire response was focused on the area on Broad street between the New York Stock Exchange and what is now the 15 Broad Street block.
So did a sweeping fire “take place” (in broad daylight and in front of video camera armed streetwalkers) providing the fire brigade a pretext to abscond with JPM‘s gold on orders from above, or merely give JPM an alibi to say it’s gold is “gone… all gone” or rather “burned… all burned” (leaving aside the propensity of a fire to propagate in the confined oxygen constraints to be found on top of the Manhattan bedrock and far below street level)? No. For the simple reason that 1 Chase Manhattan Plaza is over two blocks away from where the fire did take place as can be seen on the map below:
In other words, if there was a “fire” in JPM‘s vault, the response would have been not at 15 Broad Street, but over half a mile away at the perfectly fire-accessible Liberty Street (between the NY Fed and 1 CMP), across from the real JPM vault fire doors which can be seen in the following interactive image:
And yes: those who may suggest that any amount of gold tonnage may have been quietly moved over two blocks by the Fire Brigade have never actually carried the not-so-light-bars of gold themselves, especially not in broad daylight.
So why the confusion?
It appears the confusion stems from the Fire Brigade‘s designation of the fire as taking place at “JP Morgan’s building” which indeed is where the Fire Brigade was located. However, it is the 23 Wall Street building, also known as the “JPMorgan building” formerly owned by JPM, and subsequently owned by Morgan Guaranty Trust Company, best known for being the site of the September 16, 1920 Wall Street bombing, when 38 people were killed and 400 injured. Ironically, as was then reported, “because the Morgan building was so well known, many assumed that the target of the assumed anarchist bombing was actually the bank itself.”
For modern generations, 23 Wall Street may be better known as the (incorrect) facade of the NYSE as represented in The Dark Knight Rises.
Of course, JPM has long since moved on from its landmark location just across from the NYSE, and now can be located at its Park Avenue headquarters (with its Bear Stearns annex), and of course, at 1 Chase Manhattan Plaza.
So what is now housed in the 15 Broad/23 Wall Street block to where the FDNY was responding, if not any JPM? 23 Wall and 15 Broad Street were sold in 2003 for $100 million to AfricaIsrael & Boymelgreen (there is likely a far more interesting story surrounding AfricaIsrael and Boymelgreen here than there is about the “fire in JPM‘s vault”). The two buildings have become a condominium development, Downtown by Philippe Starck, named for French designer Philippe Starck, one of a growing number of residential buildings in the Financial District. Starck made the roof of 23 Wall into a garden and pool, accessible to the residents of the development.
Could there be a vault in the Downtown residential building, and could the FDNY have been responding to a fire in such a “commercial vault”? Of course: as anyone who has ventured into the skyscraper forest of New York‘s Financial District knows, there is an underground vault in virtually every building.