Imagine what the outlook for Detroit must be as all of these pensioners finally figure out they are going to get 16 cents on the dollar. How is it going to work in Detroit when there is no spending power? What if it moves on to Chicago, or the US government? Oh my God, there are so many governments, cities and states which are in trouble that have to face the music.
And once they face the music, the guy who thought he was going to get something is not going to get it. What does that do to the economy? It’s not a pleasant outlook. So that’s what I worry about. I worry about the final recognition that we’ve overspent, we’ve borrowed from the future, massively borrowed from the future, and when you massively borrow from the future, the present gets impacted someday.”
- Eric Sprott via King World News: