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Rule:  “As always, the big picture is interesting but you make money where the rubber meets the road.  We are taking advantage of low equity prices and confusion in the resource markets.  We are buying high quality companies with the view that the market will correct itself in the 2 to 3 year time frame.

We have also been extremely successful in our lending business, which is evidence of the fact that management teams do regard their share prices as undervalued.  Circling back to the big picture, what the Fed calls ‘quantitative easing,’ I call ‘counterfeiting.’....

Continue reading the Rick Rule 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:

“Of course the Fed couldn’t taper.  The US is spending $1.2 trillion each year, on balance sheet, more than they are taking in.  They have to find $1.2 trillion.  It turns out they could hoodwink the credit markets for about $700 billion of that, which leaves them $500 billion short.  The way they make up the $500 billion is they print it.  It’s a really good deal if you can get away with it, I don’t blame them.

But the whole idea that the Fed was going to taper quantitative easing when the US had not tapered expenditures is idiotic.  I don’t know how anybody could have expected a different outcome.  The idea that you had the members of Congress and the mainstream media acting as though the secession of counterfeiting was going to take place, in the face of this deficit, really makes me wonder about the competence of the so-called ‘big thinkers’ in this country.  I’ve always thought that they were evil, but I also used to think that they were very smart.  Now it appears that they are taking this circus literally.”

Eric King:  “What about this debt ceiling situation?”

Rule:  “That’s another classic situation.  I think all of the mainstream reporting on these problems is all part of a damaging trend that I see where news has become entertainment.  By the way, Eric, an unabashed plug for you:  One of the great things about King World News is you actually talk about issues in a way that the mainstream media won’t.

But regarding the debt ceiling, the US is simply spending way more money than it is taking in.  We are undoing all of the things that made the United States great and strangling ourselves with regulation.  In the midst of this circus, politicians are trying to score political points.

As a firm, we have positioned ourselves in things that will benefit tremendously from the coming chaos such as precious metals and precious metals equities.  I am afraid that the set of circumstances which will give us $70, $80 or $100 silver might favor me personally, but they wouldn’t be good for the bulk of the people in the United States.  From that point of view I am troubled.

I am afraid that the average person in the United States has no idea what’s going on.  So I have real concerns about this country and where the financial markets are headed as a whole.  But I would say that I am more confident than ever that investors in gold and silver are going to be correct in their investment strategy. 

So at the same time that I feel very, very distressed about the situation the country faces, and the condition of the economy, I feel more confident than ever about my outlook for myself and my own fortune.  The big money that I have made in my life has been as a result of understanding that bear markets usher in bull markets at some point.  Going through, as we are now, a truly spectacular bear market in resources, it sets up a remarkable opportunity to make money in the bull market. 

I’ve spent my whole life preparing for this and I expect for people such as myself to be richly rewarded.  I expect, however, to be part of a distinct minority.  But I’m distressed about the outlook of millions and millions of good people who don’t understand what is taking place and will be badly hurt financially as a consequence.” 

© 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 William Kaye, Dr. Paul Craig Roberts, Chris Powell, Michael Pento, Eric Sprott, Andrew Maguire, Grant Williams, Bill Fleckenstein, Pierre Lassonde, Art Cashin and Egon von Greyerz are available now. Also, other outstanding recent KWN interviews include Marc Faber and Felix Zulauf to listen CLICKING HERE.

Eric King

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