Billionaire Sprott Warns – This Will Crash The Financial System
June 29, 2013
Today billionaire Eric Sprott warned King World News that the global financial system is now in danger of a catastrophic and complete collapse. Sprott also discussed what this means for the gold and silver markets. This is the second in a series of interviews with Sprott that will be released. Below is what Sprott, who is Chairman of Sprott Asset Management, had to say in part II of this remarkable series of interviews.
Eric King: “Eric, Egon von Greyerz was saying in his KWN interview they have already revealed that Italy has lost about 30% of its entire position in derivatives. He overlaid that (30%) number on the over one quadrillion dollars of derivatives that exist globally, and came up with a (total) number of $300 trillion (of derivatives losses). Obviously that’s a staggering number. It’s unimaginable. But it does fly in the face of central planners saying they are going to taper back on QE or things of that nature.”
Sprott: “When you have a notional (one) quadrillion dollars of derivatives and they change by 1% on one quadrillion, that’s 10 trillion dollars right there. It’s just incredible. It would wipe out the (entire) banking system.
It’s a zero sum game, except the guy who’s losing can’t pay. Then of course they whole system comes crashing down because everyone worries about counterparties….