From reader WJ:
Today billionaire Eric Sprott warned King World
News that the entire global financial system is now facing the greatest
danger in history. He then issued the most dire prediction of 2015.
Eric King: “We had (the stock market
collapse) of 2001 – 2003. Then we had (the more intense collapse of)
2007, 2008, 2009. The next one (collapse) is going to be worse because
that’s just how these cycles progress. As you know, they (seizures in
the global financial system) get more violent and the collapses become
more and more intense. People couldn’t imagine it would get worse than
2001 – 2003, and yet we had 2007 – 2009. This one that’s in front of us,
I’m assuming it's going to be the mother of all collapses.”
Eric Sprott: “Two words that come to my mind,
Eric, ‘No bid.’ In other words, if you take the central planners out of
the market, there is no bid….
It’s So Preposterous
“So who’s going to buy it? Who in their right
mind would be buying bonds with a negative yield? It’s just so
preposterous. And all of the sudden if the bond buyer is not there — we
used to think it was so great that China would buy our bonds. They don’t
buy our bonds (anymore). Russia used to buy our bonds — they (now) sell
our bonds.
King World News - This Is The First Time We've Seen This Major Warning Signal In 8 Years
No Bid Means Collapse
The only entities buying the bonds are the
central banks. Well, you take the central bank out of it and there’s no
bid. That’s why I use the phrase, ‘I hope we are not right one day,’
that all of the sudden it (the entire global financial system) just
collapses.
King World News Sprott I 3:13:2015
Game Over
They (central banks) may just look in the
cupboard and say, ‘It’s over. We’ve tried our best and it’s not working.
We’ve got to stop buying these bonds because our (central bank) balance
sheets are getting so torqued out.’
King World News Sprott II 3:14:2015
It Will Have To Stop
The Debt/GDP numbers are getting so egregious
that at some point they will have to stop. It’s a lot like when Greece
finally came out and said, ‘We’re a bankrupt state.’ Well, yes, we knew
you were a bankrupt state and finally somebody admitted it and he won’t
be the last guy either. (Laughter).
KWN Fitzwilson VI 2:22:2015
More Bankrupt Countries
There will be lots of those coming along because every country has done the same thing: increase the debt, GDP goes down and tax
revenue goes down — ‘Hey, I can’t pay you back.’ That’s the definition
of bankruptcy — ‘I can’t pay you back.’ Just like the U.S. government is
not going to be able to honor their promises!
KWN Roberts VII 2:23:2015
Central Banks Controlling Markets
When are they (the U.S. government) finally
going to say they can’t pay you back? I don’t know when that’s going to
happen but I can be as patient as Janet Yellen can. I don’t know when
that day comes, Eric, but we see signs of it everyday. And we keep
wondering how the market holds itself together? I’m sure the central
planners are involved.
If it was up to me to try to keep the market up,
I would put an order in to buy the S&P futures for $100 million or
$1 billion, or whatever the number is, send it down the slowest pipe I
can — everybody front-runs me and the market miraculously goes up
because of all the high-frequency traders (HFTs) trying to beat me to
the punch.
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