Gold Silver Worlds: In the latest Ask The Expert interview, Eric Sprott was invited and talked about the economic challenges related to the debt crisis, as well as some specific evolutions related to the precious metals. We have extracted 5 great questions from the interview. This article provide the answers from Eric Sprott on those questions.
- What will happen with the US, Canada, and other countries when the next big correction occurs?
- Is Detroit’s bankruptcy an isolated event or are there more Detroits coming?
- Is it true that citizens of India has been smuggling a lot of gold into their country lately?
- Could precious metals in segregated accounts be bailed-in?
- Could central planners have induced the April gold & silver price drop?
The next big correction
Question: Eric, you, along with a few other investors, have shared the real facts about the financial problems that are facing the United States and the rest of the Western world, which everybody in the gold and silver community thanks you for that. When the next big correction occurs, what do you see in store for Canada? Do you see Canada being dragged down with the rest of the western world, or do you see Canada weathering the storm?
Eric Sprott: Well, we’re in way better shape. We have a pension plan. We have a pay as you go healthcare plan. We don’t have the amount of unfunded obligations that the US has, although we have unfunded obligations. We won’t be as badly off as the US will be, because they’re just not dealing with issues down there, because of the political quagmire they have.
But it’s not saying that we’re going to have a problem; we’re always the tail that’s wagged by the dog. But on a relevant basis, we’re going to be better off. I think we’ve got a better banking system. We have better budgetary controls, although some provinces seem to be out of control. I don’t think we have quite the same issues with the municipalities. We have more natural resources per capita. So, we’re definitely going to be better off, but that’s not to say we’re going to be unscathed.
If it’s all just a big Ponzi scheme, we all just print money as all these major capitalist countries are doing, there’s an unintended consequence of it. I don’t know whether it’s going to be inflation or massive deflation, but there will be something come out of it, because the life and the place we’re living today is not normal. I’m talking about the financial area for now, and there’ll be consequences for that. I don’t think it’ll be as bad here but that’s not something that says we won’t have to endure some pain.
I think when, say, the whole system collapses, everybody’s going to feel a certain amount of pain. It’s just some countries who will be better than others.
Question: There’s been a big item in the news lately that you’ve talked about. Recently, the municipality of Detroit filed for bankruptcy. This was, obviously, the largest municipality in US history to do so. Do you see this as an isolated event, or do you foresee many more Detroits coming in the future?(...)Click here to continue reading the original ETFDailyNews.com article: Eric Sprott – 5 Great Questions About The Debt Crisis And MetalsYou are viewing an abbreviated republication of ETF Daily News content. You can find full ETF Daily News articles on (www.etfdailynews.com)
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