U.S. Government is Insolvent-Eric Sprott
By Greg Hunter
23 SEPTEMBER 2013
Money manager Eric Sprott was not surprised by the Fed announcement to keep printing $85 billion a month. Don’t expect the money printing to end anytime soon because Sprott predicts, “If my forecast for the U.S. economy is true, they will be doing it forever.” When the Fed first started taking about cutting the money printing, Sprott points out, “It was a great excuse to bomb gold, and now that’s off the table. I think we will see people moving into gold (and silver) . . . The U.S. dollar is under incredible pressure here.” Sprott, who manages $8 billion in precious metal investments, goes on to say, “I can guarantee you the U.S. government is insolvent today, but they’re just not doing anything about it. So, when they finally do something about it, instead of cutting entitlements 25% or 40%, just like Detroit, it will be 75%.” Sprott goes on to say, “ We’re buying more bonds on a daily basis, and rates still went higher, which is why I can definitively say the Fed lost control of the bond market. That is why they could not ‘taper’ because who’s going to buy all the bonds? Bonds are for losers.” Join Greg Hunter as he goes One-on One with the CEO of Sprott Asset Management, Eric Sprott.