Central Banks are Subverting the Gold Price

"I suspect the G6 central banks have a hand in subverting the gold price because as the canary in the coal mine, high gold prices might tip everyone off to the severity of the ongoing financial crisis. I don't think anyone can doubt that we're in the middle of a financial crisis, primarily in the banking system, when month after month one program after another is rolled out to save somebody, whether it's Long-Term Refinancing Operations (LTROs), quantitative easings (QEs), bank bailouts in Spain or rollovers of debt in Greece."

- Source: The Gold Report, read the full article here:

http://www.theaureport.com/pub/na/14210

Eric Sprott - The Gold and Silver Outlook

Eric Sprott, Chairman of Sprott Inc. discusses the outlook for Gold & Silver with CFRA's John Budden. Listen to the full audio interview.

- Source:

http://www.mixcloud.com/johnbudden/eric-sprott-chairman-of-sprott-inc-discusses-the-outlook-for-gold-silver-with-cfras-john-budden/ 

The Financial System is in Total Chaos

“In this financial, chaotic market that we have and I’m referring to the whole financial system, which I think is in total chaos. More and more, I believe…the central planners, has been keeping a lid on gold and silver and I can so easily come up with the logic of how much physical demand for physical gold there is way beyond the supply and the only conclusion I can come up with is that the central banks are continuing to supply that gold by leasing that gold.”

- Source Sprott Money:

http://www.sprottmoney.com/news/eric-sprott-interview-with-cfras-john-budden

Gold and Silver are the Only Things you Should Own

"We have more regulations than you can imagine, but most of them are either not enforced or the problems escape the sight of the regulators, whether it's MF Global or Bernie Madoff. These things went on for years and years, when it would seem that the regulators could identify it. Even when they're tipped off, they can't seem to reconcile it.

Based on experience, a blanket case that more regulation will solve a problem is naive. People have to take matters into their own hands, whether they think they're being ripped off in the stock market because of high-frequency trading or that they're being hurt by rule changes on the commodity exchange. They have to assess their own situations and ask, "What kind of risk am I prepared to take?" The system has failed a lot of people.

That's why I pointblank say gold and silver are the only things you should own. They're the safest things I can possibly recommend. If you own gold and silver and you're 100% certain that it's where you think it is, you should be okay. That's the way I approach it."

- Eric Sprott in a recent interview with Seeking Alpha, read the full interview here:

http://seekingalpha.com/article/832631-eric-sprott-cautions-investors-to-fear-the-financial-system

The Economy is Taking a Cliff Dive

“The economy is already taking a cliff dive and that is before we hit the cliff. . . . It’s hard to imagine anyone being optimistic going forward here.”

- Eric Sprott in a recent USA Watchdog interview, view the video and article here:

http://usawatchdog.com/one-on-one-with-eric-sprott/

Fool Me Twice: Obama's Shocking Plans for the Next Four Years Exposed

Chaos and Collapse is in Front of Us

Eric Sprott was recently interviewed once again by King World News. In this audio interview Eric says that he believe that Chaos and a utter collapse of the financial system is in front of us. He discusses key topics such as the Gold and Silver markets. This is must listen to interview. 

 Listen to the full interview at King World News here:

http://www.kingworldnews.com/kingworldnews/King_World_News.html

$1.00 Face Value 90% Silver Washington Quarters

The Financial System Has Gone Bankrupt

“I always postulated that the financial system would go bankrupt, and it has, save for one thing, it got bailed out. But it was bankrupt. So, yes, they’ve deferred it and pushed it out. This has all played out according to script, although people interfered with the script."

- Eric Sprott via a recent King World News interview, read the full interview here:

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/8/24_Sprott_-_We_Are_Staring_At_Chaos_%26_Collapse_In_Front_Of_Us.html

Who Knows How High Gold Will Go

"I argue that there is 6,500 tons of demand and 4,000 tons of supply (each year), and the extra 2,500 tons is coming out of central banks that are leasing it. Imagine if they just stopped leasing it. Who knows where the price would go? You would get such chaos (disorderly upside trading in gold).

I can sense it has a lot of upside here. Total chaos can happen when we all realize that on a sovereign basis, the ‘Emperor has no clothes.’ Who knows how high it’s going to go, but we’re not talking about just hitting a new high above $1,920. We’re looking at much bigger numbers."

- Eric Sprott via a recent King World News interview, read the full interview here:

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/8/24_Sprott_-_We_Are_Staring_At_Chaos_%26_Collapse_In_Front_Of_Us.html

Economies Have Run into a Bit of a Roadblock

"I have always believed that one of the world's fundamental flaws is the leverage in the bank system. As you might be aware, the typical leverage of a European bank is something like 30 to 1. This means you have roughly 3 cents of capital supporting $1 dollar of assets, and as these economies have run into a bit of a roadblock (the best examples are Greece and Spain), you find out that values were too high."

- Eric Sprott via a interview with Seeking Alpha, read the full interview here:

http://seekingalpha.com/article/700311-exclusive-interview-eric-sprott-on-the-world-economy-and-the-financial-markets-part-i

The World Depression is Coming

"Eric Sprott of Sprott Asset Management thinks politicians are turning a blind eye to the coming World Depression and then talks about gold, silver and other commodities.

Sprott also sees natural gas prices moving higher as the clean energy makes its way into cars."

- Source:

http://www.stansberryradio.com/SaInvestor/LatestEpisodes/Episode/82

We Have Reached the Limit of Indebtedness

"On both sides of the Atlantic, the largest contributors to the current crisis are excessive debt and spending. We are now at a point where additional government stimulus measures will have negligible, if not detrimental effects on the economy and long-term growth. Debt has to be reduced, not increased by more deficits. Central planners have demonstrated that they don’t have the discipline to implement the Keynesian model of surplus in good times in order to finance deficits in bad times. We have now reached the limit of indebtedness and need to muddle through a painful but necessary deleveraging."

- Read the full article by Eric Sprott & Etienne Bordeleau at Sprott asset management, here:

http://www.sprott.com/markets-at-a-glance/the-solution%E2%80%A6is-the-problem,-part-ii/

Part 2: The Solution... Is the Problem

"When we wrote Part I of this paper in June 2009, the total U.S. public debt was just north of $10 trillion. Since then, that figure has increased by more than 50% to almost $16 trillion, thanks largely to unprecedented levels of government intervention.

Once the exclusive domain of central bankers and policy makers, acronyms such as QE, LTRO, SMP, TWIST, TARP, TALF have found their way into the mainstream. With the aim of providing stimulus to the economy, central planners of all stripes have both increased spending and reduced taxes in most rich countries. But do these fiscal and monetary measures really increase economic activity or do they have other perverse effects?

In today’s overleveraged world, greater deficits and government spending, financed by an expansion of public debt and the monetary base (“the printing press”), are not the answer to our economic woes. In fact, these policies have been proven to have a negative impact on growth.

While it hasn’t received much attention in recent years, a wide body of economic theory suggests that government policies and their size relative to the total economy can have a significant detrimental impact on economic growth. A recent paper from the Stockholm Research Institute of Industrial Economics compiles evidence from numerous empirical studies and finds that, for rich countries, there is overwhelming evidence of a negative relationship between a large government (either through taxes and/or spending as a share of GDP) and economic growth. All else being equal, countries where government plays a large role in the economy tend to experience lower GDP growth.

Of course, correlation does not imply causation. While the literature is not definitive on causation, it still provides strong evidence that more taxes and government spending as a share of GDP (except for productive investments such as education) is associated with lower growth.

One exception to these findings is the experience of Scandinavian countries. They have both high taxes and high government spending as a share of GDP but have experienced relatively rapid growth over the past 20 years. However, a significant share of their spending goes to education, which has been found to foster growth. They also counterbalance the large role of the state with very liberal, pro-market reforms and low levels of public debt."

- Read the full article by Eric Sprott & Etienne Bordeleau at Sprott asset management, here:

http://www.sprott.com/markets-at-a-glance/the-solution%E2%80%A6is-the-problem,-part-ii/