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Eric Sprott On Financial Farcism
A must watch two part interview of Eric Sprott by BNN, in which the Canadian asset manager shares his views on the economy, financial markets, sovereign overleverage, industrial commodities, and, of course, gold. The man who created the PHYS index to invest in physical gold, is, not surprisingly, not too excited about perspectives for stocks, and markets in general, which he qualifies as a "financial farce." Sprott is, and has been for a while, confident we will retest the March 2009 666 lows in the S&P. Slowly, more and more "experts" are moving to his camp. He also gives an advance glimpse of the topic of his upcoming May missive for all you Sprott groupies.
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BNN > CNBC et al.
+1000
It's so surreal watching a "financial news" program where the guest is allowed to speak for 1-2 minutes uninterrupted by five talking heads in boxes.
Was surfing the web today and my friend e-mailed me saying Peter Schiff was on CNBC so i watched. They gave Peter virtually ZERO real chance to talk and the other guest was acting like a total (insert normal opinion of CNBC here). Makes sense why so few people now watch CNBC, total waste of time. BNN is for adults who demand being treated as such.
Watching CNBC (but not too much! Be mindful of your total daily idiocy exposure!) can be useful, in gaining an understanding and appreciation for what the mass of sheep are being told to believe, and are still largely believing.
Similarly you can watch a bit of Maddow, Olberman, O'Reilly, Cramer, Beck, Hannity, etc. as long as you can stomach it but it gives a clear window into the thought process of the culture zombies.
One could, but I cannot.
Watching "a bit" of Billow Wryly or Pawn Calamity or any of those other court jesters is little putting just "a bit" of shit on a sandwich --- no matter the amount, my stomach is still going to rebel regardless.
Shit on a sandwich is right. In fact they all are--except Jon Stewart, who does Glenn Beck better than Glenn Beck.
Akak and Temporalist, good points yet my brain is such that it forces my body to change the channel. Could be the animal instinct of 'self preservation' in thwarting off life-threatening offenders in any way possible. Still, you both do make good points yet myself and friends are ALL OUT of this faux market and into hard assets that are placed in a variety of locations around the world.
Let 'Rome' burn and the zombies fill the streets, we are all set for virtually every possible scenario.
Here is Schiff from today on CNBC I guess it's what your friend mentioned:
http://www.youtube.com/watch?v=z-MwSKLxYow
Hell, Schiff was treated pretty decently here -- for a change. In past interviews/panels he has been hooted and laughed at. Mike Mussa is former Chief Economist for the IMF; how else could he possibly see things! He's paid to look thru rose-colored glasses.
Thanks for the link!
I agree. Schiff got his point across and was not interrupted by the host. The "talking over each other" was pretty normal in these formats.
Ahhhhh, thanks for the info! Perhaps this is the 'new normal' i have been hearing about. The human race devolving/devolution.
http://en.wikipedia.org/wiki/Devolution_(biological_fallacy)
Makes sense when you have the best and brightest not having children (or very few) while those with lackluster education having many offspring. America seems to be achieving fewer and fewer high school graduates, so perhaps it makes sense to dumb down the TV/newspaper 'news and information' accordingly.
Once again Schiff was right.
Did that fat man never hear of personal income less transfer payments? Going nowhere. Any rebound is due to government spending, which doesn't always show up directly in GDP, but mostly through personal and business spending via transfer payments and tax relief (how much did the homebuilders get to claw back in tax breaks, for example).
Bottom line is, if the deficit is 11% of GDP, and we get 4% GDP growth, that is a FAIL.
http://1.bp.blogspot.com/_pMscxxELHEg/S4_lF-aI6qI/AAAAAAAAHq8/-e-0kTZB0u...
Epic fail my friend.
Just sit down and think about it for a minute... it is the great abyss we are headed into.
Brings new meaning to the phrase "golden parachute"
My favorite comment was Mussa's "we're in a normal cyclical recovery." Alice, we are all the way through the Looking Glass now. His calm reassurance should be of great comfort to the hundreds of thousands currently exhausting two years of UE benefits.
A wiseman once told me that if the Washington Capitol Dome is visible in the camera shot there is a 100% chance the person in front of it is lying.
Thanks for posting that Schiff video, that was a funny one! File this video away for a couple years to laugh at the fat man for saying Schiff is talking nonsense.
I've already bookmarked it, and in a couple of years, or when the markets, economy and dollar all finally crash (whichever comes first), I will be sending the link to this Fat Man vs. Golden Boy debate back to this clueless corpulent cogitator of Keynesian corruption over, and over, and over again, demanding him to apologize to the audience of CNBC (all 12 of them) for his blatant pro-establishment lies and disinformation.
He still left out critical terms like. Thieves. Stolen. Bribery. Fraud. Treason. Sedition. Conspiracy. Conspiracy. Conspiracy. Conspiracy. Conspiracy. Conspiracy. Conspiracy. Conspiracy. Conspiracy. Conspiracy. Conspiracy. Conspiracy. Conspiracy. Conspiracy. Conspiracy. Conspiracy. Conspiracy. Conspiracy.
Isn't cut and paste NICE?
Racketeer Influenced and Corrupt Organizations Act (RICO)
Under RICO, a person who is a member of an enterprise that has committed any two of 35 crimes—27 federal crimes and 8 state crimes—within a 10-year period can be charged with racketeering.
TWO! And who is in prison for the greatest fraud ever perpetrated in the history of mankind? NO ONE.
Prison? No. We'll bring a little Paris to them this time.
Try guillotine.
Judging by America's legal system and recent regulatory actions track record, you probably mean bringing them a little PARIS HILTON and not the guillotine. Sluts of a feather and all that.
Hey bud..over here..yeah you...we owns the prison. You think we are going to occupy it unless it is turned into a fortress? Now you know why we think you are scum...brain firing like yours does...drink more fluoride. and bud, Have A Nice Day.
Dirtt Dirtt Dirtt... listen buddy... I've got to help you out a bit here to bring you up to speed with the new program.
Thievery, bribery, fraud, treason, sedition and conspiracy are no longer to be classed as crimes. I know you must think I'm nuts but the Supreme Court is getting ready to help the white collar criminals out. Out of jail that is!
The Honest Services law is what I'm talking about. That's the law they used to put fraudster Skilling of Enron fame away with. Soon to be gone my friend... and Skilling? He couldn't be happier! Even Lord Blankfein can't be touched for ripping off his clients anymore.
Welcome to the New Republic... oligarchs rule!
http://business-ethics.com/2010/05/23/1819-u-s-supreme-court-nears-rulin...
(This is a William D. Kat must read!)
W. D. Kat, dear meowster, I do understand your pain at the paper pushers. It is also the case that paper pushers do receive their fair chance to do what's right. When that just doesn't get done, pressure does build and has to go somewhere.
How many times have you watched Wikileaks: Capital Murder? How many have been charged? Pressure building!
Cher Monsieur LeBalance...
When the courts seek not to protect the victims of crime but the perpetrators of these notorious felonies... well it just kinda makes me wonder.
Who says crime doesn't pay?
AC/DC... Jailbreak!
http://www.youtube.com/watch?v=oukqBcCn7ys&feature=related
Since we are speaking French here, I am thinking "Trebuchet"
Imagine flinging those thieving, lying bastards into that Icelandic Volcano!
Bonsoir
Listen up Hulkster... volcanos are great and all but you get a much better pay-per-view audience with old frenchie here... a real beauty ain't she?
https://tc2.wikispaces.com/file/view/guillotine.jpg/32021821/guillotine.jpg
ooh. I wonder if the participants can choose the "skyview", aim for the adams apple, option?
Still like the Trebuchet better. Bring a little of that Monty Python zanyness to the party.
The "participants" could be given a massive muscle relaxer injection to add to the humour!
http://www.naturelich.com/archives/images/trebuchet.jpg
the audience of america IS on muscle relaxers. I see no better explanation for a people that allows themselves to be fleeced and raped with nary a whimper
Speaking of whimpers, where are the gold trolls? Beetrjuice, beetrjuice, beetrjuice!
Yeah, where the hell are they?
This thread would be considered a gold one, so the JBs are asleep at the switch.
Besides, none of 'em have explained to me what's wrong with having 5% - 10% physical gold...
They can only troll on the clock. So we have to wait till they let them out of thier coffins.
"He's an overflowing cup, filled with the very cream of human goodness."
http://www.youtube.com/watch?v=kddI6-LwXZM
I wonder if there is any diminishing return in propaganda when 5 propagandists all talk over each other at the same time.
It was nice. I could actually focus on Sprott and not have to wonder when one of the boxed idiots would interrupt him with nonsense
Very true!
Although I always get distracted by the Canadian penchant for saying "dohw-ler" and "bail-OOts".
bullshit, we have fairly neutral accents. He doesn't sound any different then a Hollywood movie.
LOL! More national insecurity from a resident of Canadia! It never ends!
He's not a Newfie by any means, but I can spot him as a Canadian by his accent within the first ten seconds.
PS: I used to live on the border with Canada for many years, traveled there frequently, and LOVE Canadians as a people! Just like to poke you guys in the ribs now and then --- you're such easy marks!
Go Jets!
Whoops moved to Arizona. Ouch.
Surreal is the right word.
"I care more that people realize, when governments print money, that the way to protect yourself is to have gold." -Eric Sprott
"were entering an economic winter" eric sprott
Carl Sagan couldn't have said it better.
Eric Sprott = CNBC neverguest.
I would LOVE to see Eric Sprott being interviewed on CNBC by that smug bubblehead Erin Burnett, only to suddenly wipe the Wall Street-lacky smirk off her face by cramming a gold brick into her yapping maw and crow "See, you can eat it ---- BITCH!"
You're not delving deep enough into the predator psychology. People don't like gold not because you can't eat it. They don't like it becuase it can eat you.
It can only eat those who do not befriend it, and who instead torture it and keep it locked in a dungeon.
Not to worry. Aristotle will come out of the light and open a bar where he'll serve mercury drink, and an anti-freeze drink, and a hemlock drink to all the anti-chumbawamba's.
And gold. Well golds gonna git you sucka.
Gold done got me a long, long time ago. I am now at peace with gold.
Surrender to gold.
Surrender to gold.
+ $1190!
But the woman on this interview is not as attractive at Erin Burnett, and all that stuff Sprott was saying, it made me feel soooooo bad. And since, like Erin makes me feel all good inside, I think I will go back and watch CNBC.
Also, Sprott does not have one of those dandy sound effects board like Cramer. I love it when he throws the chair. I always buy when Cramer throws the chair.
I don't know about this long and BORING bit with Eric Sprott, I just get SO confused when there are less than five people talking at the same time. And especially when they let them talk for more than ten seconds uninterrupted at a time --- don't these Canadians know how to conduct a REAL business TV interview? And you need graphics --- lots and lots of giant colorful charts and flashy moving graphics! I mean, the same concept works for babies in their cribs; how are they much different from most American TV viewers?
Trebuchet for that f'ing Cramer too...
Damn, I used to use that Trebuchet font all the time, Hulk. You're fucking with my head.
Yo, Akak, Sprott has been on CNBC with the famous Maria Bartiromo!
http://www.cnbc.com/id/15840232?play=1&video=1469756672
And she didn't even ask him "What good is gold, you can't eat it?"
Why, what a shabby journalistic oversight on Maria's part!
(Is it just me, or does Maria Bartiromo bear more than a passing similarity to a slightly better dressed Neapolitan streetwalker?)
She had eyes for him the whole interview.
She's married to the founder of Wisdom Tree, Jonathan Steinberg, also the son of the infamous Saul Steinberg. They got married right before Saul's fall from grace (how kind of me to put it that way). I was amazed she actually stayed married to him after Saul lost everything...or maybe he didn't and just put it into Jojo's name.
Sprott was just on in April on CNBC:
http://www.youtube.com/watch?v=F4UNzw3Pvp8
My link was better than your link -- na, na, na, na, na.
Mine was even better than yours! (See above!)
Katz... Bitchez!
Yours is always better ZerO. Love the tag. I'm always impressed with your knowledge of metals, melts, structure, and more. Use that tag from now on!
I'm stealing it temporarily...
Katz....Bitches (modified due to potential copyright infringement)
http://www.cnbc.com/id/15840232?video=1469756672&play=1
Thurs. Apr. 15 2010
CNBC still blows.
Sprott looks 5 years older than he did a month ago...
He looks younger to me...like he lost a few pounds when he was gaining a few tonnes.
Toronto makeup isn't exactly trying to compete with Manhattan.
I like that he put Marc Faber on his board (presumably for some balance)
Sprott on ! If this were an American produced show, his message would have to be broken in fifty-two segments to allow for anti-gold companies to sell their kool-aid. Then the FCC would have to ban him for being too honest. Some sage advice to live by.
"I was prepared to get a bazooka"
http://www.businessinsider.com/eric-sprott-gold-etf-imf-2010-4
Nice.
And this too
"On the state of the gold market, Sprott says the following:
"I'm a 100% believer that central banks have suppressed the price of gold. I find it hilarious today that they have these programs to sell gold - it's of no use. It's one of the dumbest decisions in the last decade.""
I like RBC precious metals fund better than Sprott. Lower MER cost and better performing. Not that I am a fan of mutuals, but if I had to choose one...
Phys taxed at only 15% cap gain rate as collectible status instead of the typical 30%. PHYS has physical gold backing; stock owners can take delivery of their share.
What is RBC status?
do you have any of the rbc metals fund ,, or just wondering "if"
looks like those who have made the buy with sprott are way ahead of your gesturing
He is Sprott-on. Gold $2000 this year!
word playa
I have been a Sprott investor since 2005.
I am confident that he will be proven wildly correct.
Own his PHYS for the long term. Great Guy-beleievable straight shooter.
All this fancy-doo discussion is very well and good...BUT we can still Shop our way back to prosperity! It worked before!
Look I realized tonight that Sarah Palin, if you strip away all the external packaging (oooh!) is really The Shopping Candidate! Because, at heart, that's what the GOP elite still believe in ("Oh Ronnie, how we need your charisma now!").
She may flirt with a Tea Bagger or two after hours, fraternize with the occasional libertarian over Martinis and weinees, but that's all fluff! Wiley Politics, just to keep the base energized and hold the pieces of the conservative cookie together. You go girl!
But deep down inside Sarah is all about The Shopping! She's planning a shopping revolution with the slogan "America, the glitzy mall on the hill". Sarah baby, lead me on!
"I can see Nordstrom's from my house!"
Oooh you betcha!
LMAO!
Better yet, I can see Needless Markup from my house. <wink, wink>
Is that you Ben Dover?
This interview gave me a good feel for Sprott's character and integrity.
Hearing what he had to say and knowing he has most his personal/family wealth invested in the funds he manages gives me a lot of comfort that he is the "real deal". I'm glad I invested in the Sprott Physical Gold Trust (PHYS).
Just another episode of Taxpayer risk.
Basel II and Financial Conglomerates
http://www.youtube.com/watch?v=3iMh0o5tSyw
Just another set of cunts who are recruiting and creating jobs. Be aware.
ok what am I missing I can not get the video to play on BNN. Sheesh!
Yeah, these BNN video clips do majorily SUCK, don't they? I can only view them after letting them download for, oh, maybe FIVE HOURS! And that's NOT with dialup internet, either!
You're being throttled. Came in fast as a speeding bullet here in NY.
I think it is a javascript problem.
Yes, good to see a real interview, with journalists that respectfully challenge, know something, and allow a considered response. GO GOLD
so which one of you gold bugs is gonna put the submarine suit on and plug the gooey leak? at some point we're talking real money here girls. oh, i forgot. you're only trying to explain to planet earth who the real "masters of the universe" are.
doo little ,, nothing holding you back from the black goo.. real money .. so you take the leap first ,,
be a pragmatic get it going .. the rest will follow
still gold is real waiting for your leap ,
out of the volcano and into the gulf geyser all blowing into an ocean of debt.
Does that come with french fries?
What, what is that guy up there saying?
I'd rather have, you know, petroleum engineers and guys like that manning the robots 5000' down. But his hero Obama does have his boot on BP's neck.
Whiny lil libs like him can only just whine...
Oh, yeah. Gold is coming back.
let me know when he talks about financial fascism....
Soros: China Must Be Part Of The New World Order
http://www.youtube.com/watch?v=TOjckJWqb0A
Timothy Geithner Open To New Global Currency
http://www.youtube.com/watch?v=ds_qGXbxK-4
Lastly.
Secretary Geithner Participates in the U.S.-China Strategic and Economic Dialogue in Beijinghttp://www.ustreas.gov/news/index1.html
All is quite obvious to some, others are in denial.
2009 vid.. I agree that at one time the nwo was going to be ATTEMPTED..That window has since closed, they can snap fingers and make sdr's appear all the want now but the window has closed..China told there people to BUY SILVER AND GOLD last month..China is now OUT..Thats why the IMF had the EMERGENCY meeting on the 11th..And now says they are atleast 3 years away from being able to implement..Come back and talk about it in 3 years and will see where were at..Until then it can be put back to bed..NO DICE..Had a chance and blew it..
Sure timmy is wanting it, were broke,lol..All the cb's want it..They have given most of the gold away banking on this system and not needing it..Now they relize,oh shit, we dont have no gold for sale..
You're calling them out silvertrain? NICE!
Soros acts like he is looking for words..."A new, uh, oh what do my friends and I call it? New World Order, yes that's it!"
And Geithner, always with the Bill Clinton hand gesture, only awkwardly. Geithner is so akward, I bet he has never gotten laid, except when he pays for it.
Oh great. Nice image. Geithner getting laid. Timmay and his hand...ick. Now I won't sleep for days. And I thought we were buds...
:)
You just know he likes to be the submissive to some black latex clad tranny.
I bet he pays her with an IOU too.
Oooh, ick! Have to be a real down on her luck putita to have him for any less than 10k...
Yeah, BNN has a good thing going simply by being respectful of their guest.
They could be so much better! I mean they make zero effort and their questions are just as inane as CNBC's. I mean where are the good questions? Other than letting the guest speak, this is a plane vanilla interview.
Makes me mad
BNN is a good old fashioned business channel. Having spent much of the last 3 1/2 years in Toronto, watching BNN felt like 1990 and FNN. But they do try and they do let people talk. They don't have Beeker types or 9 boxes making a sham of financial journalism. They do their best for the timewarp that they are in without all the bells and whistles. So they aren't Pimm Fox--so what. STFU.
Back to what Sprott had to say, love the market got it wrong comment regarding gold stocks although everything was being sold and there were no safe havens. The cheerleaders at the Fed was his cute way of saying what he really thinks is going on there without saying it.
But the best was dead governments walking. Unfortunately, the movie will not star Sean Penn or Susan Sarandon because there will not be anyone to console these phucknuts on their day of reckoning when the lethal injections are administered.
And by the way, you uncreative folks that just can't restrain yourselves from commenting even though you have nothing to say, ENOUGH of the one liner gold bitches (bitchez) comments. I have it, some don't, some want more, others don't care--it's getting older than Spam here at ZH. Again, STFU.
S&P 300 BITCHES.
I sense the potential for a seriously funny Saturday Night Live skit here, with inset boxes containing jabbering Muppets doubling and multiplying like the old Clairol shampoo commercials --- "and they'll tell two friends, and so on, and so on, and so on .....", until they have split the screen up into 120 tiny boxes emanating a caterwalling din.
Never lose hope in humanity (can't wait till June 11th!):
Actors, used car salesman and puppets touting camera time to send a message to the masses. It was interesting watching his downtime. One could see the wheels of creativity working overtime. Drama queens are always plotting in advance.
On a positive note. Love that music. Who plays it? Thanks Leo.
Edit: Oh no.. Just saw your extended link above. My apologies. Not a sports fan. Watched video from a different prospective. Good luck with your team.
Touching, but as an Inter fan, I have found the media coverage to be giving too much credit to Mourinho. Yes, he deserves A LOT of credit, but the team was magnificent. Maicon, Zanetti, Cambiasso, Sneijder, Milito, Samuel...
Neither can I Leo!
I prepared this regarding the World Cup vis-a-vis the stock market!
http://www.bostonwealth.net/2010/05/22/world-cup-and-the-stock-market/
Leo, you rock as usual. Great vid and very touching.
In the end it is how we "live" our lives.
Bloomberg Televison and their website put up most of their interviews - I mention that because I don't think many people do so.
They are respectful of their guests and allow them to speak. I especially like that they introduce the counter/contrarian arguments although they have seemed to be quite bearish over the past couple of years (not that there is anything wrong with that but "journalists" are supposed to be unbiased and report not opine --- ahhhh remember those days).
Anyway, speaking of unbiased :) here is Max Keiser upcoming tomorrow with Jim Rickards about declaring Goldman Sachs enemies of the state along with Al Qaeda:
http://maxkeiser.com/2010/05/24/goldman-ilk-undeclared-enemies/?utm_sour...
Rickards on CNBC today:
http://www.cnbc.com/id/15840232?video=1502636886&play=1
And here is Jim Rickards twitter link btw:
http://twitter.com/jamesgrickards
The video with an interview of J.S. Kim was better. It was kind of like watching LOST except it was entertaining and made sense.
Yes it was good and I watched that as well. Here it is for those that haven't:
http://maxkeiser.com/watch/the-keiser-report/keiser-report-44-20-may-201...
"Today we saw 64,043 oz of gold deposited in the customer category. On friday an identical amt was deposited into the customer inventory.
What is the chance that an indentical amount is deposited on two consecutive days?
There seems to be no transparency at the comex."
http://harveyorgan.blogspot.com/
"Look what happened. We saw a fair size 172 contracts exercised today or 17200 oz of gold. The total number of gold standing for the month of May is a record 202,800 oz or 6.5 tonnes of gold.
The normal tonnage in a non delivery month is 1 to 2 tonnes of gold. Someone is in want of this precious metal.
The number of contracts for the front month of June with two days to go is 245,569 which is extremely high."
"There have been very little silver deliveries into the comex dealer inventory ready to accomodate all of those longs who are waiting patiently for their metal.
In March we had around 22million oz of silver and in May, we will probably have 24 million oz. At most there has been about 6 million oz enter the comex silver inventory of the dealers.
Looks like they are in trouble with both silver and gold."
Thanks for the link.
Gensler actually accepted testimony from Organ.
Euro breakdown continues apace; now under 111JPY and under 1.23 USD.
Whoever is manning the swap lines has been on a week long drinking binge.
Are you accusing the higher power of the market of being drunk? Hey, it's not the Kremlin in 1991 with vodka bottles everywhere. It's reality. And I love it!
Sprott is killing it!
Silver and gold are off to the races! Get it Asia!
In my opinion, he has a reasoned position, clearly trades what he believes and tells everyone what his opinion is - exactly what I look for in a manager. I also know that he has an outstanding operation around him - he has built a very capable team front/middle/back office.
a bear who likes gold? how original
I'm a permabear that kinda likes gold. That means I have some, maybe 5% of my net worth. I have no debt. And I'm not all in like Gekko and others here. What's your point? Not all bears like gold. Are you familiar with Nouriel Roubini? He likes Spam because you can eat it and it lasts 100 years.
Personally, I don't like nitrates, preservatives, or Something Posing As Meat.
You'll love this.
http://thedomesticvegan.com/2010/03/18/vegan-corned-beef-seitan/
Well the spam is a bubble. Then they'll replace it with a new bubble once it's played out.
http://www.thinkgeek.com/stuff/41/unicorn-meat.shtml
on Mon, 05/24/2010 - 00:21
#369554
"Yeah, a lot of the manipulation articles are quite unfounded as well.
It's like people here never read anything about technical analysis or something. We had a 61.8 fib retracement off of the lows, and people act like it's manipulation.
Maybe it's normal market behavior? Sure it's made by computers, but that doesn't stop it from being just regular ass technical analysis."
Yah, don't you ever freaking forget that JB is somehow around 50 times smarter than Eric Sprott because JB didn't buy gold ten years ago. At least that is probably what he tells himself in the mirror whenever he takes a break from pullin' the goalie.
'normal market behavior' indeed. Read: Manipulation.
Eg. Op-Ex week doesn't even pretend to hide it anymore. Yah, I see it (I mean, who can't?) and yeah, I can benefit from it. But reading the narcissistic blather of morally bankrupt traders who pound themselves on the back 'til they're bruised as if participating in such blatantly fraudulent plays somehow makes them better and/or smarter than everyone else always brings me to a choking retch.
Regards,
Goin
ES just broke through 1050 and is looks headed for 1041 test in a hurry.
It's early in Dubai right now.. but these guys heard that ES was down like 25 and they started celebrating!
http://bostonwealth.blogspot.com/2010/05/meanwhile-in-dubai.html
Always feels like a little bit of justice is being done when the markets are down but it compels me to ask myself...If the banks are pitching perfect games are they making money headed down?
Sorry - not impressed with Mr. Sprott:
1. Govt is "printing money" - such a tired and incorrect assessment. We are in a massive credit deflation. Look at 10yr Treasuries - heading to 2% handle - why? No the govt is not printing money.
2. Debt increased by 1.5Tril to generate 400bn GDP growth. So lets see if you personally took on debt of 1.5 Million and your Income grew by 400 Thousand - is that a problem? lets see at the current average cost on Treasuries the interest rate is around 2%. So you need 30 Thousand extra income to service the loan - no problem - you have 400 Thousand of extra income.
3. Generalized handwringing about China, Europe - of course at this point every taxi driver knows to roll his eyes in despair about the problems in China and Europe. No new insights or new info.
4. Solution - buy gold. OK - I got it!!
1. Govt is "printing money" - such a tired and incorrect assessment. We are in a massive credit deflation. Look at 10yr Treasuries - heading to 2% handle - why? No the govt is not printing money.
The government is printing money through its intermediary, the central bank. Semantics is a poor game in a crisis. Or did you mean to just plain tell a lie?
http://research.stlouisfed.org/fred2/graph/?s[1][id]=AMBNS
2. Debt increased by 1.5Tril to generate 400bn GDP growth. So lets see if you personally took on debt of 1.5 Million and your Income grew by 400 Thousand - is that a problem? lets see at the current average cost on Treasuries the interest rate is around 2%. So you need 30 Thousand extra income to service the loan - no problem - you have 400 Thousand of extra income.
Leverage works until it doesn't, and just above you said we were in a credit deflation. Not really a great time to lever up, is it?
Listen - you can rant and rave - keep repeating tired old phrases like "printing money". You would be better served if you sat down and tried to really understand how money and the banking system works.
Overall - private credit growth has plumetted. Govt. borrowing is not successfully filling the hole. So - monetary aggregates are hardly showing any growth. The CRB index is down, Chinese stock market down, Treasury yield curve dramaticaly flattening, early signs of money market distress from Europe ( Libor up).
Gold is fine - its great. I just dont feel that these guys need to try to justify their gold positions with the kind of pabulum that they dish out.
Listen - you can rant and rave - keep repeating tired old phrases like "printing money"....So - monetary aggregates are hardly showing any growth.
This is an incredibly important point: you and your "monetary aggregates" conflate money and credit but they are most definitely NOT the same thing. It makes absolutely no sense at all to be paid small amounts of "money-thingies" for a day's labor when vast quantities of those same thingies are effortlessly created at the whim of one man. Creating new "money" from nothing destroys the purchasing power of all then-existing money by diluting it, whether or not credit is subsequently created in the counterfeiting-based fractional-reserve system.
Fractional-reserve banking is almost the same thing as naked shorting, and that is why people don't understand why naked shorting shouldn't be allowed. The banks "sell" money all the time that they don't really have. The entire financial system is based on phantoms.
See? I understand exactly how money and the banking system work.
Destroying the purchasing power of fiat money is acceptable when prices are falling for the goods the purchasers demand. Purchasers will need two cell phones when real prices do not fall for the services they need. They'll need one for for their doctor and one for their banker.
How much gold does GLD really hold?
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