SPROTT: THE S&P WILL FALL BELOW ITS MARCH ‘09 LOWS, U.S. ECONOMY IS A PONZI SCHEME
Courtesy of The Pragmatic Capitalist
Eric Sprott of Sprott Asset management has been very vocal about his disbelief of the 2009 rally in equities. He believes the U.S. economic recovery is simply a continuation of the ponzi debt based scheme the U.S. has been running for years. He’d be easier to shrug off had he not predicted the current crisis and navigated his firm through it with extraordinary success. Sprott’s fund has returned almost 500% during a period where the S&P was sliced by a third. In a recent Bloomberg interview he said:
“We’re in a bear market that will last 15 or 20 years, and we’ve had nine of them. We don’t have employment gains. We have less of a decline. That’s a sign of weakness. The data is weak.”
Sprott thinks the U.S. debt based/printing recovery has the potential to cause further gains in gold as investors lose faith in the U.S. dollar and shy away from fiat currencies:
“If you get into this thing where you’ve got to keep printing more and more and more, who knows about the price of gold? It will be the new currency in due course.”
You can read his full thoughts on the Ponzi economy below:
sprott –
