Today billionaire Eric Sprott spoke with King World News and issued one of the most ominous warnings of 2015.
Eric King: “Eric, the West is literally drowning in debt and yet you have bond markets trading in the West at ridiculous levels. It’s one of the greatest bubbles in history. But the reality is if that bubble pops and bonds go in the other direction, the West is going to be bankrupt because they couldn’t afford to pay the interest on the debt. So the (Western) governments are essentially rigging these markets. We even have negative yields in Europe. The whole thing is preposterous but everyone wants to know: What is going to cause this madness to end? Because if the West lets those bond markets go, the game is over.”
Today Billionaire Eric Sprott (pictured below) issued one of the most ominous warnings of 2015
Sprott: “Well, it could be, Eric, that they do lose control of the bond market because it gets bigger all the time, so you need more and more central (bank) buying of bonds. You made the comment that ‘they (Western nations) will go bankrupt.’ Look, as far as I’m concerned, they are bankrupt….
Continue reading the Eric Sprott interview below…
“It’s like we all knew Greece was bankrupt 4 or 5 years ago. Even the politicians in their own country said, ‘We’re bankrupt.’ They all pretend that we can solve the problem but we can’t solve the problem. And it’s pretty well (the same story) everywhere (in the West) because they have bigger and bigger debts.
The Madness Of QE Is All About Governments Surviving
When you look at the zero-sum reason for printing money, it was because they had to get interest rates down in order to allow the governments to survive. And they have to keep buying more (bonds) all the time. So we are going to get back to QE4 here in the United States. And when QE ends in Europe, who is going to take over? Is Japan going to start?
Somebody’s got to keep buying these bonds all the time because we’ve already seen an eruption in bonds yields. We are very close to levels where people are going to be concerned about bond holdings. There’s been a lot of carnage in the last few months in the bond market, and when we start breaking through some recovery high rates in bonds, there are going to be a lot of losses to be taken.”
Eric King: “Eric, what could end the Ponzi scheme and overwhelm the Western governments?”
What If The Dominos Start Falling?
Sprott: “What could end it is some country not supporting their banking system. What if the dominos start falling? What if there really was a Greek default and there were these huge bond losses to take? Or Chicago going to junk status and suddenly having to cut their pensions or declare bankruptcy?
There are so many institutions and governments where the obligations just keep going up and there is no way of paying for them. They will fail. We already had it in Detroit and now we have Chicago, and maybe some other state or teachers plan will default. But when you have rates at zero, it’s very hard to grow the value of assets because there is no return.
Why Not Get Of The Financial System Now, Before It's Too Late?
We will see a series of these things (defaults and bankruptcies) and more people will figure out that the financial system is very vulnerable. So why not get out now, rather than wait until it’s too late?” ***Eric Sprott's remarkable audio interview has now been released and you can listen to it by CLICKING HERE OR ON THE IMAGE BELOW. The written interview only contains a tiny portion of what Sprott had to say in his outstanding audio interview. Sprott discusses the greatest danger facing the world today, the coming financial collapse, the gold and silver markets, what surprises to expect this year and much more.
***ALSO JUST RELEASED: Richard Russell – U.S. Government And The Fed Scared To Death, The Late Joe Granville, Silver And An Ominous Warning From John Williams CLICK HERE.
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The audio interviews with Robert Arnott, David Stockman, Chris Powell, Andrew Maguire, Rick Rule, Bill Fleckenstein, John Mauldin, Michael Pento, Gerald Celente, Egon von Greyerz, Dr. Paul Craig Roberts, James Turk, Dr. Philippa Malmgren, Eric Sprott, Marc Faber, Felix Zulauf, John Embry and Rick Santelli are available now and you can listen to them by CLICKING HERE.