April 30, 2012

Eric Sprott says that the Ponzi scheme Continues in full motion

Even though politicians are fighting hard to continue the current financial system and use different techniques, the people are doing what is logical and withdraw their money from the banking systems which are unsafe. Not only have that but people and investors no longer trusted the sovereign debt and the credibility of countries. He mentions that in the last reported month people took out 65 billion USD from Spain banks. With this speed, Spanish banks will need a huge bailout very soon. LTRO was to safe the banks and we will probably have more as deposits continue to leave. The only way out is to continue print or the system will collapse. Eric Sprott recommends investors to hold gold and silver as well as mining stocks as the countries will debase their currencies when they print to safe the financial system.

Eric Sprott is a Canadian hedge fund manager and founder of Sprott Asset Management. He became a billionaire on paper with the initial public offering of Sprott Inc., the parent of his Sprott Asset Management firm.