© 2013 by King World News®. All Rights Reserved. This material may not be published, broadcast,

rewritten, or redistributed.  However, linking directly to the blog page is permitted and encouraged.

Subscribe to RSS
KWN Blog

Eric King:  “What we are really talking about here is an acceleration of the confiscation of wealth.  What’s being proposed around the world, the wealth taxes and some of these other things, it is the confiscation of wealth going forward -- that’s the theme by governments, isn’t it?”

Sprott:  “That is the ongoing thing that is happening.  There was some work done in the UK saying that by having zero interest rates you help the banking system by 120 billion pounds a year.  But of course the opposite side of that is the savers don’t make 120 billion pounds.  And with this financial repression ongoing, people can’t better themselves.  They are losing out to inflation.

Continue reading the Eric Sprott interview below...


To hear what billionaire Eric Sprott & Rick Rule are doing with their own

money and which $7 billion company John Embry &

Dr. Marc Faber oversee click on the logo:

“So it’s this grind on the 99% which is continuing. 

As you would undoubtedly agree, we have inflation which is understated.  If you imagine what’s going to happen post-January 1st in the US, when one of your biggest costs in a US household already is healthcare and now we’re talking about premiums going up 50% to 100%, it’s just shocking the relevance of it to the 99%.

This is what’s going on:  Everything that’s been done since 2008 is to save the banking system -- to let the banks make money because they had lost a lot of capital.  Of course the opposite is whatever they make, some saver doesn’t make.  So, yes, the transfer just keeps moving on from the people to the banks, people to the banks.  Ultimately, the consumer can’t spend what he (or she) doesn’t have, so we are going to see that manifested.  I can’t even imagine in the US when people have to face this reality of their healthcare bills.

Of course we are all ignoring it in a way.  We talk about how bad the website is.  Forget the website, what about the cost of insurance?  It seems to me that the cost of insurance is escalating dramatically for everyone, and it’s a big cost for everyone already.  So it’s not going to be pretty.”

Eric King:  “Eric, as this whole thing begins to collapse, the paper Ponzi scheme around the globe, do you worry about wealth confiscation?  Is that something you worry about as governments collapse?”

Sprott:  “Absolutely.  People in power want to stay in power.  And if it means abrogating your debt obligations, pension fund obligations, Medicare obligations, and/or seizing assets, in a sense, in the previous part of this conversation, they are seizing assets already.  They are not letting the savers make money so that the banks can make money.  It’s already a seizure of assets that’s taking place.

But in its extreme, when they have to somehow make day-to-day decisions, yes, do I worry that 401k contributions could be confiscated.  Yes, I worry about that.  I worry that they could attempt to confiscate gold.  People who are in power that are in desperate situations do desperate things.  That’s why everyone has to have some gold and silver out of the system.”

Eric King:  “Eric, what’s your greatest fear going forward.  What has you worried?”

Sprott:  “My greatest fear is that governments are broke.  Governments have overspent and there is nothing they can do about it.  They are going to fail on their obligations, and when they fail the economic impact will be so dire.

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 King:  “When you say, ‘someday,’ and I know you’ve studied the Great Depression, but some have talked about a Greater Depression.  Is that what you worry about going forward, that it’s going to be that much worse for the people when this all hits the fan?”

Sprott:  “I think so, Eric.  I mean we have way more leverage than we ever had.  And when someone thinks they are going to get their $100,000 pension, or $50,000 pension, and the next thing you know they are informed, ‘Well, you know your $100,000 became $16,000,’ or ‘your $50,000 became $8,000,’ just think of the shift that has to take place here. 

Think of the poor guy making $8,000 and he finds out his health care bill is over $8,000.  The whole thing makes no sense.  The numbers don’t work.  And we are going to face that reality.  I don’t know when the US government, and not just the US government, but when other governments face up to, ‘OK, how are we going to right the ship here?’  It’s not going to be easy to right the ship.  There are going to be very, very hard times that we are all going to go through to get there. 

And I’m not one who is imagining that one tries to prosper in that.  Whenever I got into gold back in 2000 I said, ‘You know what, I just want to try to survive this thing.  I want to try to survive because the paper assets will end up with no value.’  Any study of currencies will show that the currency ends up being worth zero, and we have abused it so immensely here recently with all this printing going on.

I always ask investors, smart people, ‘Do you believe in zero interest rates, and do you believe in printing money?  And if you do, fine, play the game.  If you don’t, don’t play the game, and get involved in something where you can salvage your net worth at the end of the day.”

IMPORTANT - This is without a doubt one of billionaire Eric Sprott’s most important and powerful KWN audio interviews in history.  The extraordinary audio is available now and you can listen to it by CLICKING HERE.

IMPORTANT - Due to recent events, KWN will be releasing interviews all day today.

© 2013 by King World News®. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.  However, linking directly to the blog page is permitted and encouraged.

The audio interviews with Bill Fleckenstein, Eric Sprott, Grant Williams, Egon von Greyerz, Dr. Paul Craig Roberts, William Kaye, Michael Pento, Andrew Maguire, David Stockman, Art Cashin, John Hathaway and Jim Grant are available now. Other recent KWN interviews include Marc Faber and Felix Zulauf -- to listen CLICK HERE.

Eric King

To return to BLOG click here.