Eric Sprott: Western ‘Central Banks’ gold is likely gone’

Image by dan / freedigitalphotos,net *

“Our analysis of the physical gold market shows that central banks have most likely been a massive unreported supplier of physical gold, and strongly implies that their gold reserves are negligible today”

“The central banks’ gold is likely gone, and the bullion banks that sold it have no realistic chance of getting it back.” Eric Sprott & David Baker (emphasis added)

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Sprott on the economic crisis: ‘Debt has to be reduced, not increased by more deficits’

Image by Salvatore Vuono / freedigitalphotos.net *

‘”On both sides of the Atlantic, the largest contributors to the current crisis are excessive debt and spending. We are now at a point where additional government stimulus measures will have negligible, if not detrimental effects on the economy and long-term growth.”

“The historical evidence shows that countries with large governments and high levels of debt have on average, achieved lower economic growth. Given the already high level of debt and deficits in most developed countries, it is doubtful that increased fiscal stimulus will really help the recovery. It’s clear that debt is the problem and the solution does not lie in piling on even more of it.

“The current misconception that our economic salvation lies with more stimulus is both treacherous and self-defeating. As long as we continue down this path, the “solution” will continue to be the problem. There is no miracle cure to our current woes and recent proposals by central planners risk worsening the economic outlook for decades to come.” (Emphasis added) Eric Sprott & Etienne Bordeleau

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Eric Sprott: “Credibility is leaving the system”

Image: Stuart Miles / freedigitalphotos.net *

“We have no doubt that everyone is tired of bad news, but we are compelled to review the facts: Europe is currently experiencing severe bank runs, budgets in virtually every western country on the planet are out of control, the banking system is running excessive leverage and risk, the costs of servicing the ever-increasing amounts of government debt are rising rapidly, and the economies of Europe, Asia and the United States are slowing down or are in full contraction. There’s no sugar coating it and we have to stop listening to politicians and central planners who continue to downplay, obfuscate and flat out lie about the current economic reality. Stop listening to them.  

“(…) we cannot see any positive solutions to this problem other than debt repudiation.”   Eric Sprott

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Eric Sprott: About to launch a New kind of Bank

Eric Sprott, by Silver Circle Movie / flickr.com *

“In Canada, where the banking industry poses relatively little systemic risk, a different solution is now in play. Partnering with the asset management company founded by Toronto billionaire Eric Sprott, Continental Currency Exchange—the largest independently owned retailer of foreign exchange in Canada—is out to create a zero-risk option.”

The “Continental Bank of Canada would remain an unlevered and overcapitalized financial institution, something that isn’t offered by today’s financial services market.”

“Canada’s banks are watching with interest.”  

Thomas Watson

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