Wail, for the day of the Lord is near; as destruction from the Almighty it will come!"
And if those days had not been cut short, no human being would be saved. But for the sake of the elect those days will be cut short.
Today billionaire Eric Sprott told King World News that Europeans have now lost confidence in both the banking system and the sovereigns. Sprott, who is Chairman of Sprott Asset Management, also warned the global economy is now rolling over and investors need to be prepared. Here is what Sprott had to say about the situation: “The Ponzi scheme in the financial world continues. Month after month there is a new technique for trying to prevent the dominos from falling. We see that people are doing the logical thing, they are taking money out of the banking system.”
Eric Sprott continues:
“Of course the biggest example, recently, is Spain, where they took $65 billion out of the banks in the last reported month. That’s why we had to have the LTRO, which provided over one trillion to European banks because people are taking their money out. We already know the banks can’t fund the deposit withdrawals and therefore have to borrow from the ECB.
“Nothing is improving. The confidence numbers and the PMI’s in Europe are weak. The PMI in China has shown contraction for six months in a row here. So, anybody who thinks the world’s economic picture is improving is being sorely disappointed.
I don’t think it can be resolved unless you just keep printing money. It looks like that’s the way they’ve decided to do it. But obviously somebody’s taking on an obligation here which they are not going to be able to fund. There’s no doubt in my mind that most countries can’t possibly pay back their debt.
In the US, for example, we had social security come out and say we’ve increased our underfunding, just this last year, by $2.6 trillion. We’re going downhill by $4 trillion a year in a $15 trillion economy. So there’s no way that any rational person could imagine the governments can possibly repay their debts.
There’s going to be two choices. One is it just stops. As you know, there’s been many times before, it’s been well publicized, that the banking system was within hours of shutting down. That could easily happen again, where the powers that be just can’t continue to supply the liquidity where it’s needed.
Having seen what all of these governments and central banks are prepared to do, that is if you can’t sell the bonds we’ll just print up the money and buy them, would suggest things hold together, but that currencies get debased.
The primary winner here is going to be gold and silver. People should worry significantly about having money in a bank. They should have a good part of their portfolio in physical gold or the mining shares. It’s so obvious they should be a winner.
I find it interesting we had this lousy GDP number (in the US), gold looks like it’s going to run and now it’s being held there. Everything is always counterintuitive in this business because the powers that be don’t want gold to go up.
But the fact is that a thinking person is going to continue to buy it, and non-G6 nations are going to continue to buy it in the central banks. So I think the path is pretty clear, all of the data supports the fact that the physical market is going to overpower the sellers in the paper market.”
The written portion above is just a small part of the tremendous interview with billionaire Eric Sprott. Sprott has been one of the most vocal critics of central planners and the maneuvers they have executed. Sprott covers global markets, gold, silver, what investors should be doing 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.