Sprott Money's blog

Imagine a real estate market with the rate of interest on mortgages as high as it could possibly go. 

Having covered the issue of “competitive devaluation” and currency-debauchment in considerable depth in recent commentaries, China’s “surprise devaluation” of the renminbi provides a practical, current example to illustrate the economic dynamics at work here.

For 6 ½ long years, we have been bombarded with the mythology known as “the U.S. economic recovery” by the mainstream media. 

What does an economy do when it no longer produces enough goods to pay its own bills? It “consumes”, meaning it cannibalizes (i.e. consumes) all of the accumulated wealth of that society. And when the “consumer economy” has cannibalized all that wealth? It turns to debt.

To all appearances, at least “a new Day has dawned” for Greece, the nations of the Rest of the World, and any other members/victims of the Corrupt West also seeking to reclaim their sovereignty, and find economic salvation for their people. Let’s hope that the reality which follows reflects these hopes for a better world.

We don’t have a “capitalist” economic system. What we have, instead, is a perversion of capitalism. This pseudo-capitalism is a suicidal model of pure, economic exploitation, combined with a plethora of nonsensical dogma and policies.

But what I was seeing was a central bank that I thought was doing the wrong thing, always backstopping markets and that was under Chairman Greenspan at the time. And I saw that it was leading to, in my area, in technology, the greatest stock market bubble that I'd ever seen. 

Watching as bankrupt (Western) governments pay near-zero or even negative rates of interest on their debts, we see a financial fraud and sham of unparalleled dimensions in the history of our nations. However, when these same regimes inflict these fraudulent interest rates on “savers” (i.e. their own populations), while double-digit inflation rages all around us, this is nothing less than a crime against humanity – with even worse crimes still to come.

As we reported last year, inflation was raging in food prices. This came at a time, when the FED had the audacity to claim that inflation was "too low".

We’re not trying to steal from the Little People to give to the Top-1%. We will just do anything and everything in our power to make sure it’s “probably impossible” for anything else to happen, ever.

Approximately two years ago, a commentary was published entitled “The One Bank”. The empirical foundation for the article (and the paradigm) was an extensive computer model, produced by a trio of academics at a university in Switzerland, and originally reviewed in an article from Forbes.

The tale of two markets is a story I’ve gone over time and time again. It is a story about lies and deception, truth and honesty.

Anyone remotely following the gold market, knows that the East is deeply connected with metals. They rightly believe that they are a safe store of value and have a deep affinity that has lasted throughout the ages.

Despite the sputtering economy, despite report after report that indicates that global economies are slowing down, despite the historic amount of money printing that has done little to nothing to fix these issues, there are those out there who believe that the solution to all our problems is more of the same. More money printing.

Rinse and repeat, rinse and repeat, that’s the story of the ongoing financial crisis that surrounds Greece.

Greece, once again, is staring over the edge into the abyss and is facing imminent financial default, possible collapse and a system breakdown. That is, unless they can once again pull a rabbit out of their hat and stave off disaster for just one more month.