Today billionaire Eric Sprott told King World News the reason why a massive panic is coming and what investors can do to protect themselves. Sprott also spoke about the non-stop financial chaos central planners are faced with “24/7.” This is the second of three written interviews with Sprott that will be released today. Below is what Sprott, who is Chairman of Sprott Asset Management, had to say in part II of this remarkable series of interviews.
Sprott: “What has me worried is we are in a financial system where the banking system is massively over-levered, where governments are massively over-levered, where entitlements cannot be paid, and so from an economic approach we all know that somewhere in the next 5 to 10 years it’s going to be a disaster.
Pensioners will be told, ‘You know that social security check we promised you, we can’t pay you that. We’re going to have to cut it 20%, or we are going to have to change the retirement age.’ There seems to me nothing but problems because the central planners have organized everything to try to stem what should have happened starting in 2000 when the Nasdaq broke.
We had a damn mania and they’ve been fighting it ever since. And they end up creating one problem after another....
“So my outlook for the world’s economy is not strong. We see a deep recession in Europe. We see depression in many countries in Europe. We see China slowing down, no growth in the (United) States. I’m not optimistic about the economic outlook here.
Eric, one other thing I should comment on is what’s going on in the financial world. There’s just nothing but financial chaos happening 24/7. The central planners are always trying to deal with the next issue that they already know about, but they haven’t told us about.
I would suspect that we have bank runs going on in the periphery in Europe. How anybody could leave money in a weak country’s banks is beyond me. We saw what happened in Cyprus. It was a disaster for the depositors. I would imagine most people say, ‘It didn’t happen to me.’ Well, you know what, IBM, Microsoft, GE and multi-national companies, they operate in every country. They saw what happened in Cyprus and you can imagine the CFO’s of those companies saying, ‘Oh my goodness. Who’s next here?’
Read More: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/6/1_Sprott_-_A_Mega-Panic_Is_Coming_%26_Here_Is_The_Reason_Why.html
Sprott: “What has me worried is we are in a financial system where the banking system is massively over-levered, where governments are massively over-levered, where entitlements cannot be paid, and so from an economic approach we all know that somewhere in the next 5 to 10 years it’s going to be a disaster.
Pensioners will be told, ‘You know that social security check we promised you, we can’t pay you that. We’re going to have to cut it 20%, or we are going to have to change the retirement age.’ There seems to me nothing but problems because the central planners have organized everything to try to stem what should have happened starting in 2000 when the Nasdaq broke.
We had a damn mania and they’ve been fighting it ever since. And they end up creating one problem after another....
“So my outlook for the world’s economy is not strong. We see a deep recession in Europe. We see depression in many countries in Europe. We see China slowing down, no growth in the (United) States. I’m not optimistic about the economic outlook here.
Eric, one other thing I should comment on is what’s going on in the financial world. There’s just nothing but financial chaos happening 24/7. The central planners are always trying to deal with the next issue that they already know about, but they haven’t told us about.
I would suspect that we have bank runs going on in the periphery in Europe. How anybody could leave money in a weak country’s banks is beyond me. We saw what happened in Cyprus. It was a disaster for the depositors. I would imagine most people say, ‘It didn’t happen to me.’ Well, you know what, IBM, Microsoft, GE and multi-national companies, they operate in every country. They saw what happened in Cyprus and you can imagine the CFO’s of those companies saying, ‘Oh my goodness. Who’s next here?’
Read More: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/6/1_Sprott_-_A_Mega-Panic_Is_Coming_%26_Here_Is_The_Reason_Why.html