Today billionaire Eric Sprott gave King World News an extraordinary interview, and it’s not the kind of thing you are going to see in the mainstream media. Sprott told KWN, “...as much as we knew the 99% was having a problem, I can guarantee you the 1% is having a big problem today.” Sprott, who is Chairman of Sprott Asset Management, also said, “the markets go up because the central planners want the markets to go up ... The system is imploding on itself, but the central planners want everyone to think it’s fine. They just lie to us.”
He also stated, “...there is no plan, no formalized plan, no agreed to plan. It’s all just vaporware.” Here is what Billionaire Sprott had to say about what is happening: “Today’s rally (end of quarter window dressing), even though there is no agreement by the way, but the markets go up because the central planners want the markets to go up. But the fundamentals for the market are deteriorating by the day. We have more and more warnings, retail sales are plunging.”
Eric Sprott continues:
“There’s no way to stimulate things. We’ve already got a zero interest rate policy, now they are talking about a negative interest rate policy. We don’t have the room to stimulate because we’ve already got massive deficits. So I don’t see a way of pulling the world out of its economic funk any longer.
So I think the market should come under some pressure here for the second quarter, and more important, when the forecast for the third quarter come out because I don’t think they will be pretty. The fundamentals aren’t going to be there.
We all got fooled by all of the statistics about job growth in the (United) States. You’ve seen the unemployment claims, essentially, keep going up, even though every week they report they go down. But the fact is they are going up. We’re now getting some serious layoffs. Wall Street is going to have to lay off people....
“There’s no business. There’s no IPO business, there is no merger and acquisition business. In fact, I would suggest as much as we knew the 99% was having a problem, I can guarantee you the 1% is having a big problem today, particularly over in Europe.
It (the big money over in Europe) should be frightened. We have bank runs going on over there. If anybody took the time to look at the balance sheet of a bank or a country in Europe, there’s no other conclusion to make other than they won’t be able to meet their obligations. Those are easy conclusions to come to.
Just as it was easy for me, back in 2007, to say the following companies are broke, GM, Fannie Mae, Freddie Mac, Citigroup, you just take a look at the balance sheet. You can’t make it. You’re beyond a Minsky moment, and most countries are in that situation today. They (central planners) just keep printing more money all the time.
I’ve been asked before, is there a solution to the problem? There isn’t a solution to the problem. There’s things that might happen. There’s a default that could happen. There’s hyperinflation that could happen, but none of those would be deemed as solutions to the problem. But one or the other or both is going to happen.
People should, rightly, have fear of having their money in paper instruments, whether it’s in a bank account or a bond. If they had any sense they would be buying (physical) gold and/or silver. That’s the only way to maintain your purchasing power.
Bill Gross, in his June letter, was complaining about the financial repression of a 1.64% yield on a US bond over ten years, and came to the conclusion that people should consider owning gold. The sooner we resolve this financial crisis, and get these central planners out of the gold market, the sooner gold will get to the price that it so richly deserves. Gold deserves to be way higher than it is today because the currencies aren’t worth the paper they are printed on.”
When asked what to expect going forward, Sprott responded, “Continuing contagion, maybe with some kicking of the can down the road, which we’ve been doing for a long time now. But the day is coming when we’re all going to realize that the debts can’t be paid. You’ve got to shed paper assets and you’ve got to own physical gold and physical silver.
The system is imploding on itself, but the central planners want everyone to think it’s fine. They just lie to us. ‘We have an agreement.’ No, you don’t have an agreement. ‘We have a Spanish bank bailout plan.’ No, you don’t have a Spanish bank bailout plan. You don’t have a plan, you just say you have a plan. There is no plan.
Of course, they are probably in buying the bank stocks, just to make it look like they really do have a plan, but there is no plan, no formalized plan, no agreed-to plan. It’s all just vaporware.”
The written portion above is just a small part of this extraordinary interview with billionaire Eric Sprott. Sprott covers global markets, gold, silver, what he is doing with his own money, what investors should be doing right now, what to expect next, the mining shares and much more. The KWN Eric Sprott interview is available now and you can listen to it by CLICKING HERE.
The interviews with legendary Art Cashin ($612 billion UBS), Jean-Marie Eveillard (oversees $50 billion) and Don Coxe ($538 billion BMO) are available now. Also, be sure to listen to this week’s line-up of other KWN interviews which include Ben Davies, Nigel Farage, James Turk, John Mauldin, Egon von Greyerz and Gerald Celente by CLICKING HERE.
Eric King
KingWorldNews.com
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