The Doc sat down with Sprott Asset Management’s Eric Sprott this weekend to discuss the European debt contagion, the latest gold and silver massacre, the massive rush into physical metals, and his outlook on gold and silver for the rest of 2012 and beyond.

In this timely and explosive interview, Eric warns listeners that any weekend deals to bailout Spanish banks will not cure the problem as the problem is WAY BIGGER THAN CENTRAL BANKS OR GOVERNMENTS CAN DEAL WITH, the contagion will spread, the situation is untenable, THERE WILL BE NO RECOVERY, and that gold is the canary in the coal-mine indicating the seriousness of the crisis.

Sprott believes as the deleveraging crisis intensifies the trickle of bond fund managers such as Bill Gross starting to look at gold for protection will quickly become a groundswell, and states that  THERE IS NO GOLD TO BUY!!

Sprott also discusses concerns that GLD’s gold has been rehypothecated, analyzes the cartel’s recent change of tactics in raiding metals during Bernanke’s speeches (Sprott says ALL markets are manipulated), and gives his outlook on gold and silver over the near-term.


Full article and audio interview now available below:




When asked by The Doc about The Fed’s failure to announce additional QE on Thursday Eric replied:

As most people know, there HAS to be a stimulus.   There’s going to be this meeting of the EU people over the weekend.  There’s been some wonderful work done about the size of the bank runs in Europe, and they’re just monstrous in size.  I’m sure that the shortfall in the Spanish banking system is going to be very AIG-like where one day the AIG losses were $40b, and the next day it was $60b, and the next day it was $100b, and three days later it was $185 billion and who knows how much it really was.

I was sitting there and I asked someone, how many mortgages do they have? And they said, they have about a trillion.  I told them, well the hole will be about $400 Billion then because I’m sure all those things are 40% underwater!

So this $100 billion suggestion (for Spain) is WAY below the number!   Of course it doesn’t matter what the capital deficiency is, how much of the money is leaving the banks?   When money leaves a bank, the asset theoretically, well, they’ve got to write a check,  but how do you write a check when you can’t sell an asset?   That’s why they have to keep getting bailed out.
It wouldn’t matter whether they had all of the capital in the world.  If every deposit leaves, the check they have to write is unbelievable. 

So there’s a HUGE problem going on there (in Europe), and for the life of me I can’t see why it hasn’t moved gold a lot sooner than it has, but then again I’m in the camp that all markets are manipulated, particularly the precious metals market, but we all know that the bond market is massively manipulated.

I suspect that the stock market being the headline thing that everyone looks at has a very big hand of governments who realize they have this awful financial system, and how can we make it look better?
If you can get the market to rally 288 points in a day, it looks like things are under control, but I can assure you, they’re not!


When asked whether central banks were in danger of falling behind the curve, and will need to announce massive new stimulus to stop the deflationary momentum, Eric responded:

The ECB is WAY behind the curve here.  Because the Euro area is quite dysfunctional and you can’t get agreement among 17 groups  and of course there is different interests of the stronger countries vs. the weaker countries- I think they’ve been way behind the curve in dealing with the problem that they have.

Fortunately in the US where there’s one central bank and one huge printing operation it’s easier for them to deal with the problem because they can literally do whatever they want- as we’ve seen them do on many other occasions.   The Fed getting behind the curve may be them getting Europe to solve it’s problems.   There have been Americans that went over to Europe to try to encourage them within the last week, and Obama was on the phone to encourage them to deal with the problems, and here we have the weekend meetings, and undoubtedly they’ll come up with some promise of something, whether or not it alleviates the ongoing bank run we’ll have to wait and see.

The problem is WAY BIGGER than central banks can deal with, and its way bigger than governments can deal with– the whole banking community is massively larger than countries.   The countries of course have no excess funds anyways  because they’re all running deficits, so it’s very difficult for the countries to lean in there and bail them out when their own credit is under attack!

Spain just got downgraded by 3 notches by Fitch, so what are they going to do?  They can’t go in and say we’re going to put €100 billion in our banks- their bonds would probably go through 10% so fast you wouldn’t know what happened!

It’s a mess, everyone’s behind the curve, and I don’t think they’ll get in front of the curve quite frankly.    Extending and pretending, program after program, and when the program ends, the markets always go down.   Then they come out with another program, the market goes up, and everyone is anticipating we’re going to have stimulus, the market’s going to go up…but ultimately, there’s NO IMPACT ON THE ECONOMY, BECAUSE THEY KEEP BAILING OUT THE FINANCIAL SYSTEM, NOT THE ECONOMY!!
It’s the economy that’s languishing here.


When asked whether the European contagion will play out as a slow domino-like collapse through Spain, Portugal, and Italy before reaching France, the UK, and the US, or whether at some point the entire Western system will simply snap, Eric responded:

There’s lots of countries that are worse off than Spain!  Spain’s not one of the worst ones, but unfortunately it happens to be in Europe and they CAN’T PRINT THEIR OWN MONEY!

As far as I’m concerned the US is bankrupt, Japan is bankrupt, I’m sure England’s bankrupt,  they all have HUGE percentages of debt to GDP.  They are all WAY PAST their Minsky Moments- imagine if interest rates were normal and not abnormal!   What would the cost of government be of having a normal interest rate environment?   It’s an untenable situation that is not going to be resolved in any normal kind of manner.  

The things they’ve done in the last 5 years- NONE HAVE BEEN NORMAL, whether it’s QE, LTRO’s, unlimited swap lines, maybe we’ll get some new bank guarantees over the weekend- THESE THINGS ARENT NORMAL!!

We’re dealing with an abnormal situation with abnormal responses which NEVER accomplish anything.  Again, I reiterate that the economy continues to weaken.   Why does it weaken?  Because the 99% are not making any headway on their income gains, if there is a global income gain as unemployment’s going up in the world.  When your costs are going up and your income isn’t, things get tough.

I rather suspect that the 1% is now starting to feel it and if you are living in Europe and are part of the 1%, there’s no way you’re not being impacted today.  I would even say with the recent market sell-off in North America that the 1% is starting to feel it here.  Particularly the financial 1% are going to start feeling it here.   There’s been no solution for the economy here and if there’s no economy then you shouldn’t have a stock market.



When asked whether Thursday’s gold and silver raid coinciding with Bernanke’s testimony to Congress felt like Deja-Vu to the Leap Day Massacre Eric responded:

 It might be that the silver cartels have changed their MO.  The MO used to be that whenever the jobs number came out they’d go to work ,  which let them take a shot at the markets once a month.

The last jobs report backfired, and of course the jobs reports have been so poor.   I think the key thing for the cartel is to time it, and to know when to do it.  Three or four guys acting together can have a bigger impact if you all know exactly what second we’re going to do something.

Of course  Bernanke releasing his comments at exactly 10am is the perfect time.  Ok, let’s knock gold and silver down.  It theoretically make’s Ben’s remarks seem all the more important, although you see the action in the market before anyone’s even had a chance to read his comments, but it sort of reinforces it.

I would not be surprised that the MO has changed, and now we do these things when Bernanke speaks or when the Fed announcements come out at 2:15 on June 20th next, that’s when they’ll act.  They like to know when they have a common time when they can all go into shorting mode.

To me, there’s been no reason for precious metals to be weak here.  All of the data is incredibly positive for precious metals.   I focus on gold because the silver data is so poor that we get, but when you see China buying 100 tons of gold in April, Iran’s buying, Turkey’s buying…Kazakhstan announces they’re going to go from 12% of reserves in gold to 15%- all of the data speaks to HUGE VOLUMES OF PHYSICAL GOLD BEING CONSUMED…way beyond the ability of the miners to provide that gold.   Which makes me think the central banks are continuing to lease or to supply the gold into the market somehow…normally through leasing because then they don’t have to sold it.

All of the physical data says that gold is a buy.  All of the financial goings on suggest that gold is a buy, but for some odd reason, and of course to me the odd reason is the central planners of the world don’t like the price of gold going up.  The central planners to their demise think they know how to run the world.   They’ve proven in the last five years THEY DON’T, because they can never solve a problem!

Of course gold and particularly silver being in such short supply will be massive beneficiaries when all of a sudden people realize that there’s not as much gold around as people think.  Of course the silver supply would disappear in a nanosecond because it’s a very small amount of money.


When asked whether he expected the CFTC to take action against the manipulators upon the conclusion of their 4 year silver investigation which Bart Chilton stated would conclude within the next 2-3 months Eric replied:

I think everyone has been a little surprised at the inefficacy of the SEC & CFTC, you and I have been through this where we see these smashes and nobody really investigates anything, so it’s hard for me to see that they would come out with any stunning revelation.

Most times financial institutions have done something that was inappropriate they always just pay some meager little fine- never having to admit that there was any guilt- they just pay the meager fine and it goes off into the sunset.
I would imagine that MO would stay the course here and we’re not going to get much out of it.
Ted Butler wrote about that this week suggesting that we’re really not going to see anything.

They might find a way maybe because JP Morgan finally got their book down to some size which is below someone’s guidelines, then the CFTC can come out and say ‘Our current analysis of the market suggests that there aren’t any over-leveraged short positions’, and away we go.  I’m not keeping my fingers crossed- it’s going to be up to the physical markets both in gold and silver to deal with the paper markets.


Regarding whether the silver/ gold ratio can stay near 55 to 1 with total US silver eagle sales nearly equal to US Mint gold eagle sales for 2012 at $460 million to $470 million Eric stated:

That’s always been my argument.  Even in 2011 the silver sales exceeded the gold sales in dollars.
Which means when the ratio is as it is today, 56 to 1, it means people are buying 56 times the physical volume of silver as gold.  When you analyze the availability of gold and silver in a physical sense, we know that there’s about 70 million ounces of gold per year available for investment. ..very little is used in industry.

I would argue that at the extreme there are 450 million ounces of available silver, using 900 million ounces as the total mining output, and I’m saying there’s 450 million available for investment (and I’m even including jewelry and things like that).  The ratio for 450 to 70 means that there’s 6.5 times more physical silver available to buy for investment vs gold.    Yet people are buying in 56 to 1!!

In the case of our gold trust and our silver trust, we raised exactly the same amount of dollars in the issues we had in the 1stquarter- so we bought more than 50 times more silver than gold!

People can’t keep doing that, ok?  This is people voting with their money!   If people are going to continue voting with their money and purchase as much silver as gold, the price is not going to stay in a 56 to 1 ratio.


When asked about his recent statement on CNBC that ‘gold was the investment of the last decade, it blew away Berkshire and Microsoft by over 500%, they (Buffet, Gates, & Munger) missed the trade big time’  and that gold and silver would trade at new highs over $2,000 and $50 by year end  Eric explained:

I hadn’t even read what Warren Buffet wrote, but I wondered, why is this man writing about gold?  Why do you put in your annual report that you don’t like gold?  Why don’t you spend your whole annual report writing about the 99% of things that you don’t like?  It seemed so perverse to me, and then to have other people who are considered financial icons coming out and bad-mouthing gold, it seemed so extreme to me and possibly organized in order to keep the system together.

Gold is the canary in the coal mine, and if people go there, the pressure on the central planners becomes extreme.   In the last two letters PIMCO’s Bill Gross wrote, he is going more and more to hard assets and he mentioned gold in the last letter.   I just think of it this way.  Ok Bill, you’re the bond king.
Here’s the bond king saying maybe you should go to gold.   How long will it take the mainstream investors, who have so much money in bonds, to try to put it into gold?   If they do, the price would go crazy.   As you know, we’re already in a shortage of supply vs. demand in these markets.

Well that means that theoretically, the last guy can’t get in!  If all of a sudden the world’s bond fund managers and balance fund managers and even mainstream managers decide to get into gold, it will just be a fiasco!  There is no gold to buy!

Just think of the dilemma a pension fund manager is in.   Just imagine today the Japanese pension fund manager.   His stock market has done nothing for 25 years!  His bonds have yielded nothing for 20 years!
He has no return!  One fund by the way recently announced that they’re going to put 25% of their money into gold and I thought ‘well thank goodness 25 years later you finally figured it out!’

Imagine in Germany today where 2 year bonds yield zero, and the stock market will probably provide a negative return this year.  How do you pay your pensioners?  You have to buy something that can go up in value rather than something that goes down in value!

It’s just a matter of time before this shift gains some momentum!   We are now seeing some early stage guys, mostly in the hedge fund business and of course the University of Texas fund and a few others, but it’s a groundswell that is just going to pick up speed given time.
Knowing what the physical demand/supply is, they’re not going to get in without prices going a lot higher!

In terms of believing that gold can go to a new high and that silver can go to a new high I simply go to: if you watch the financial chaos that’s going on, if you watch the volatility of the market-  I watched a stock market that rallied 100% because we’re going to have some sort of economic recovery, which in February we said The Recovery Has No Clothes.    Of course now we find out that the recovery has no clothes!  There’s not going to be a recovery!  We get warning after warning after warning now that the outlook going forward is not as cheery as we all thought it was.

We have a desperate financial situation already, let alone that Europe’s in a recession, China’s industrial activity is in a recession, the US is probably in a recession, how do you keep this thing going here?
I just continue to believe that the safest path is to own gold and silver.  Any additional investment in the area by the powers that be is going to have a dramatic impact on the price of these products, so I obviously think that they should be above their old highs.

As you might believe and as I believe, as silver was about to break $50 and all hell would have broken loose, I believe it was orchestrated to be knocked down.   We’ll be back there again, and we’ll go above it in my opinion.


When asked what it will take to improve sentiment and start the next major rally in gold and silver, Eric stated:

I can’t imagine that Europeans are not buying gold and silver.   I can’t imagine that the Chinese aren’t buying gold and silver when they realize the change in affairs over there.   Plus you see all these central banks buying and now Kazakhstan says we’re just changing our reserves in gold from 12% to 15%- I mean that’s a pretty bold statement!  Imagine if every central bank said that!  There’s just no way in this earth that the gold is available!

Throughout the whole bull market, I always thought of it as a supply and demand thing in the physical markets.   Yes, Central banks would stop selling.  Yes, they would become buyers, which they have.  The hedgers would stop hedging, which they have.   The EFT’s came into existence, which they weren’t.
It’s all been a physical market all the way!

The only people who associate gold with the financial markets are people who keep saying that everything’s stable and fine and that gold shouldn’t go up.  The fact is that the physical demand for gold far exceeds the supply, and I’m sure that the G6 central banks have been supplying the gold.

Now we have the tailwinds behind us of the total folly of the monetary people with the QE1’s and QE2’s and LTRO’s and unlimited swaps and all the other was of ingeniously keeping the system from doing what it would naturally do, WHICH IS DE-LEVERAGE!  Of course de-leveraging is devastating to a banking system.

Ultimately the real purpose for gold is that you own gold because you don’t want your money with a levered financial counter-party.  All of the financial counter-parties in the world are highly levered.
That’s why they disappear overnight like Dexia got taken out over a weekend.   Like Bankia, one day you pass a stress test and three weeks later you’re broke!  That’s how fast it happens!

We don’t have to wait for QE3, they likely won’t even call it QE3, they’ll come up with a new acronym for what it really is, printing money.   We don’t need to wait for that (to see gold and silver move).  You can look at all the data, and the data is overwhelmingly in favor of people buying gold and silver.


When asked about his thoughts regarding Harvey Organ’s recent allegations that GLD’s gold has been rehypothecated from the Bank of England and Arab investors, Eric replied:

Well Doc, that’s why we came up with our own trust where the gold is held at the Royal Canadian Mint, and if you have enough, you can take physical delivery- I forget what the minimums are now, but the gold is there to be purchased.  We’re not going to lever anything, and of course I’ve been a huge proponent of owning physical gold and silver for the last 12 years, and that’s the only way to do it.

Always remember that there’s always counter-party risk unless you hold it, and these counter-parties, you can be shocked at how quickly you find out that they’re not financially solvent- as we might find out this weekend how insolvent the whole Spanish banking system is.


Eric Sprott is the Billionaire CEO of Sprott Asset Management, as well as the Chairman of Sprott Money & Sprott Incorporated, and author of the monthly public financial newsletter ‘Markets at a Glance’.
Eric is one of the pre-eminent gold and silver commentators in the market today, and has called silver the investment of the next decade.
Investors can sign up for his free newsletter and learn more about the Sprott family of companies at by contacting [email protected]
For your physical gold and bullion needs, please visit Sprott Money Ltd. at



SilverDoctors specializes in precious metals news, analysis, and commentary at, and its bullion division SD Bullion offers investors some of the lowest and most competitive retail bullion prices available.

  1. WSJ just noted that the European financing ministers are in discussions to provide $125 billion in bailout funds for Spanish banks.  IMO that is little more than a small downpayment to a situation that will no more be resolved by bankster debt bailout than Greece.  And Greece is falling apart  Spain is a $1 trillion Euro economy.  Greece was 25% of that and dropping like a stone.  Look out Italy

  2. AG As you know, it is difficult at best to pin point the exact date and time, but I think the fiat Ponzi scheme is going to be something of the past before year end if things continue to get out of hand. What do you think?

  3. “Silver supply will disappear in a NANO second” Eric Sprott. I suggest you get what you can while you can. Greece will crash totally I think within the next two-three months. Spain is crippled and won’t recover IMO. Once Spain goes, Italy will follow quickly and then look out. At this point, I would really be getting out of the paper market at this time. If you can, get out of the paper market now. This is the time now when the MSM and the gold/silver bashing guru’s try to convince “everything is O.K.”  This past week, Obama said the middle class was doing good. I call horse shit.

  4. One thing is for sure: Chances are great that our way of life is going to be changed permanently in our life times.

    I personally believe we should enjoy the comforts we’re currently enjoying while we can, because we’re going to sit with a dog-eat-dog situation pretty soon. We’re going to learn how to really and trully appreciate life when death stare us in the eyes through cold, hunger and what have you. We will only then truly appreciate what our forebears have done for us and how we’ve allowed most of it to slip into the Abyss. I cannot say that I am looking forward to it, because it sure as hell is going to be a ride out of hell. I would gladly donate my silver if we could avoid what’s coming, but it’s clear to me that we’re way passed the point of no return.

    lol I suppose it’s time to get the cleaning kit out and to make sure that Mr. .357 Magnum is ready to dance when the party starts.

  5. Great Job Doc!

    I foresee the day when we will be limited in our PM purchases.  It would not surprise me 

    if we begin to see more out of stocks from our vendors by the end of the year.  
    Because of this belief we are stacking the shine during the drops.  Our last significant purchase should be first quarter, 2013.  God help us.  

  6. If or rather when the SHTF, I hope the NET is up and working, sure would like to stay in touch with all of you. Something to think about. Some of us may live very close together and just don’t know it. Ideas please.

  7. In a world economy collaps. I feel the best place to be is in America. The american people have and will always cair for others and each other. There is no disputing  that!

  8. 2 OZ. I think about that often as well, it would be great if we could draw up a plan of action.

    427 You’re right. I tell my wife often that when the shit hits the fan, I would love to be in America.

    P.S. I think Winter has officially started this side. It is about 5°C inside our house with the heaters on.

  9. Stoke the fire SB. Summer is coming on here and I’ve got to go start the grille. I’ll post again in the morning and we’ll come up with a plan. You got it 427. See ya’ll tomorrow.

  10. I just got through listening to 4 DVD’s today and it co-insides what Mr. Sprott was talking about. My biggest fear is not the Euros collapsing or Greece Defaulting but the Derivatives Market crashing and that will happen as soon as you see the Interest Rates going up.

    It’s all about Debt and Control and right now the Elite are in control and they want us, when everything collapses they will step in with their New World Order and Currency which will be based on, you guessed it, Gold and Silver and man watch it rise. Kaboom

    So right now I’ll keep on stacking no matter the price and try and get out of much Paper Debt as I can before the shit hits the fan.

    It’s really great to laugh and joke with you guys through all this shit but after these 4 DVD’s I’m getting pretty upset of what’s about to happen, so I hope and pray you folks are getting prepared.

  11. Marchas45 You’re right, it is upsetting indeed.

    I for one expect that they’re going to declare all gold and silver government  property at some stage or another. They’re going to tell the sheeple that they’re doing it in a bid to distribute wealth more evenly and most of them will fall for it, because they have no gold and/or silver to fall back on. It will get so bad that they will actually get rewarded for spying on us silver bugs, especially those of us who will refuse to part with our gold and/or silver. It is therefore wise to hid one’s stash properly and only to start using it at a much  later stage, when the proverbial dust has settled. If I were the elite, I would do exactly that. In fact, I would declare private gold and silver ownership beyond a certain point as treason and make it punishable by death. I kid you not, I think the majority of sheeple will fall for it.

    lol Maybe I have the cat completely by its tail, but they are not going to leave us alone. We will have to fight to keep our stashes.

  12. Jamie Dimon Prepares For His Own Jubilee On Capitol Hill

    Watch Closely For A Snow Job

    “The JP Morgan boss has some explaining to do”

    Simon Goodley The Observer,

    Saturday 9 June 2012

    Will US legislators spot the flaws and press the great banker for more,
    perhaps asking how the “London Whale”, Bruno Iksil, made a $100bn
    derivatives bet that Morgan classified as a “hedge” rather than a punt?

    Dimon might then be forced to demonstrate how expert he is at minimising
    risk, and he has much to brag about. Morgan routinely funds the
    political parties that will be questioning its boss. Now that’s real

    Shareholders are hopping mad
    at Dimon, arguably the most renowned financier on Wall Street and, up
    until a few weeks ago, the one bank CEO who could seemingly do no wrong.
    Two investors in particular, James Baker, a private shareholder from
    California, and investment services firm Saratoga Advantage Trust, have
    each filed a lawsuit against the too-big-to-fail bank’s chairman and
    JPMorgan itself
    …” LINK

    The Title Of The Hearing Has Now Been Made Public:

    COMMITTEE ON BANKING, HOUSING, AND URBAN AFFAIRS will meet in OPEN SESSION to conduct a hearing on:

    A Breakdown in Risk Management: What Went Wrong at JPMorgan Chase?

    Here are some questions the lawmakers might consider asking Mr. Dimon in
    an effort to elicit illuminating and thoughtful answers: READ MORE

    There Are So Many Here–I Just Picked Out These:

    Why did they miss this?

    When did they first raise questions about the
    London trades?

    Were they provided with all of the information requested?

    Were they ever misled?

    Did anyone at the firm ever push back on
    concerns that the Fed or regulators from any other agency raised?

    important: Do you believe that the regulators should have been able to
    spot these trades?

    And if not, what could, or should, be done to help
    them identify such a risky trade?

    Bruno Iksil, your trader nicknamed the London Whale, had made a $100
    billion derivatives bet to create what your chief investment office
    considered a hedge. However, such a large trade made JPMorgan virtually
    the entire market for a certain kind of derivative, which makes it
    particularly difficult to unwind. Given JPMorgan’s size, is it too big
    to hedge?

    Tremendous Anger Follows In This Article’s Comments (63 of them)

    June 13 Will Get Very Interesting—But Watch



    I Want To Submit The Questions–Okay?

    Okay, Jamie–What Are They?

    Lauren’s Going To Read Them:

    1. Why is there a light in the fridge but not in the freezer?

    2. Did you ever notice that if you blow in a dogs face it goes mad, yet when you take him on a car ride he sticks his head straight out the window?

    3. Why do banks leave the door wide open but the pens chained
    to the counter?
    4. Why does Donald Duck wear a towel when he comes out
    of the shower, when he doesn’t usually wear any pants?

    5. How come you press harder on a remote control when you
    know the battery is dead?

    ???–Ummm Jamie!, Aren’t These A Little Irrelevant?

    Come On –Some Of Those Are Hard!

    Let’s Not Go There Okay–Jamie?


  13. Those who believe the system is going to collapse within the next year might want to pay a visit to the dentist to get a cleaning, checkup, and bring all their teeth back into shape.

    Just like the merchants who made terrific profits during the Gold Rush, those people who sock away medicine, booze, and other necessities will do very well selling & bartering these after TSHTF.

    I think somebody with a toothache would gladly give you a fistful of ASE’s for some painkillers…

  14. Silver Bullion 

     Re armoring up   If you can acquire a good pump 12 gauge or two plus 300-500 rounds of good 00 buck and slugs plus some 6 and 8 shot, a good bolt action or semi auto rifle—AK 47 (with at least 10 metal magazines and 2,000 rounds of ammo)  is probably more popular in your country that should round out your armory.  357 is a good gun BUT, I am of the opinion that you use a pistol to fight your way to your long guns.  One is none and two is one when it comes to fire arms.

    My guess on the FIAT ponzi scheme—6 months, maybe less.  My personal agenda for being out of  monetary harm’s way is by June 30 2012.     I just finished Sprotts written interview but wrote the WSJ bit this AM.  My pain meds are making me a little drifty so I will use 2008 as my measure on how long we have. 

      One bank (or country is the first tipping point)  That was Greece early this year   Kind of like Bear Sterns which failed in May 2008   Then Merrill and Lehman in Sept Oct 2008.  FNMA and Freddie Mac, Wachovia, WAMU (large banks) failed in near succession with bank runs too boot.  Those would be the equivalent of Italy, France and maybe the UK. AIG was more like what we could see with a total   sovereign failure since AIG was the derivative king.  The Euro equivalent of AIG would be the crash coming across the Atlantic to our banks and if the dam busts, the derivatives will be unstoppable.  We will try but it could be systemic, leaving nothing standing except JPM absorbed into the FED.

    Greece and its failure—all that  took place in the last 4 months. It’s  now on its second collapse so   2012 seems to be setting up in a similar fashion with the small countries, Greece, Portugal, Cypress and Croatia needing bailouts like our institutions needed them in 2008.  Kind of like Dominos.

      Spain reminds me of Bear Sterns.  It’s so large and really the first big country of it’s kind to go BK as well as being   kind of clumped with the 4 small countries including Greece as the first major failure, it’s  like the first part of the Piggies to spiral into the black hole.

      But Spain is so large and there are such huge derivatives, maybe a few trillion in TBTF US Bank exposure, the $100 billion pledged to stave off the Spanish bank RUNS and soon-to-follow failures of banks might buy us time until to the end of June. It seems to be a stop gap measure that had to be conjured up since Spain was really going down fast last week.  Greece and its $400 billion only bought 2 months.  So $100 billion buys a few weeks.  Italy is twice the size of Spain and Spain is 4 times the size of Greece and the other minor players.

    Our Choom Room president was stoned at his Friday news conference.  I know that it look like when a person who fancies himself as eloquent can’t get the words out, stumbling with  4-5 second pauses on words that should be falling from his mouth like shit from ass.  The man was losing it and could not continue. Note that he left without  even saying ‘see yah’  And the crap with national security disclosures was the capper.  He was out of it.   Blame, Blame, Blame. But the most telling question was how much time he spends on Europe.  Europe, he says, is on its own and needs lots of Euro TARP.  Good luck with that. Europe makes or breaks his whole administration.

     His crew spends a lot of time on Europe with Geithner burning up the phone lines to Spain, Rajoy, Merkel and the other clueless managerial class trying to figure out what to do. No accident that the Spanish bailout occurred less than 24 hours after the stumble bum in chief spewed his BS.  Spain could easily have failed this weekend without the $100 billion.  So we might have until the end of June to figure out how to stop the Spanish bank  runs and bank failures.  And that’s  with  the entire financial power of the  FED, IMF, ECB, EFSF and ESM.  Like Sprott said, the  real estate contagion is $400 billion and that’s only the tip of the CDS iceberg. Spain’s total debt is $2.25 trillion. 

    BHO and his crew are so screwed up and so incredibly clueless when it comes to trying to even get a small handle on the moment and what’s  going on in Europe that the best Obama could say was they need a TARP.  Completely clueless and idiotic  But what can you expect from a person who’s whole life experience is smoking weed, snorting coke and being a community activist.  My thanks to Ann Barnhardt for those insights.

    The FED has unlimited funds and I think they might use all their dry powder to stall the Euro collapse or at least slow it down  Geithner and Bernanke may have to swoop in and try to save Europe since BHO will be either fund raising or wetting his pants since the Euro failure spells his reection failure.

    A lot can happen in the next few weeks and nothing I see spells relief from this relentless grinding.  So I’ll give it a shot that before November we will see some serious money flowing into Euro, which is unsaveable.  So then it rotates to December, after the election and into January  There is a 2 month gap between BHO being voted out of office and Romney taking over.  I don’t see a peaceful transition of power  

  15. Mammoth;

    My teeth are shot, and thought of the same thing. Might not be able to pick and chose the food we can eat. This is the type of things that would kill early man if you can’t eat whats around you, you die.
    I have a PM dealer $1500.00 and over in cash no tax, no record of the transaction. And his prices are grate!
  16. This Country Is So Screwed Up!

    Greece: Strike threatens Greek elections on June 17

    Athens :

    | Jun 09, 2012 at 8:36 AM PDT

    Can You Read This Sign?—Neither Can I.

    A new crisis is facing Greece. New elections are scheduled for June
    17. However a union representing municipal workers has called a two day
    strike for June 16th and June 17. These workers are key to running the
    election machinery.

    Adding also to Greek woes is a rising March
    unemployment rate at 21.9 per cent. Last year at that time it was
    already at 15.7 per cent. The rate is up from February as well.

    POE-OTA is calling the upcoming strike. The union complains that its
    members are paid less for election work than other employees of the
    government. Members of the union set up voting centers including booths
    and ballot boxes and also deal with voter documentation.

    Leader of the union Themis Balassopoulos also said that the union
    will refuse to do any election work until the stike starting June 16. He
    also said municipal employees will refuse to do any election-related
    work until then. He said that last election members received just 75
    dollars for their work a fraction of what other workers received. He
    said:. “If the country has no money, it can’t just be for us while
    Interior Ministry employees get €1,800 ($2,300) — that’s three months’
    salary for a municipal garbage collector. It’s a provocation.”

    Balassopoulos also noted””The elections are up in the air,” “We carry
    the ballot boxes, set up and clean the voting centers, we transport the
    used ballots… Anything you can imagine in connection with the
    elections, we do it.” The government may get a court order ruling the
    strike illegal. READ MORE

  17. Turd Has Finally, (I Think), Seen The Light And Admitted Trading Is For Fools. His Blog Has Become A Stacking Site

    “Please let me off of this ride before I get sick.”

    None of it matters and, frankly, neither does my brand of TA. The
    reason Turd is who Turd is is because the markets are manipulated.
    Knowing that, it made predicting price quite easy. However, at this
    moment of extreme desperation, where The Powers That Be are doing
    everything possible to cling to their power, none of it matters

    The only thing left to do is stack. I’ve done my part to alert as
    many as possible and, in large part, my TA made that possible. But now,
    it seems that those willing to listen have heard. Everyone else is being
    peeled away by the manipulative powers of the status quo. They are
    doomed. You and I, however, shall march on, intent upon protecting
    ourselves and our families.

    In the days ahead, you’ll be seeing less charts on this site. Maybe
    the occasional weekly or daily chart but rarely the 2-hour or 4-hour
    versions. What would be the point? As long as the charts are used
    against us, why should I keep citing them when, by doing so, I’m
    actually driving people away from the message?

    This site will continue to focus on precious metal accumulation and preparation. I hope to come out the other side, financially preserved and ready to lead the reconstruction.


    p.s. I’ve had enough for today so I’m taking the rest of the day off. See you tomorrow.

    Seeing The Light Years Ago, I Know What He’s Probably Gone Through. If He’s Been As Frustrated As I Was After Exhausting Every Idea I Could Throw At Trading To No Avail, Then He Understands.

    Good For Him—Now He Can Focus On The Important Things In Life Instead of Getting Slaughtered By These Banksters. If more gold and silver sites recognized that they not only can not predict future events, but ABSOLUTELY CAN NOT fight the Banksters at this game, they’d be better off.

  18. AG;

    That was a grate read the med are doing good brother. I hope it’s going well with the recovery most likely a pain in the arss.
    I do agree with the time frames you put out. Plus Geithner is also in the IMF that boy is not getting any sleep.
  19. “How do you write a check when you can’t sell an asset”

    That’s what the whole banance sheet cooking boils down to, they have liabilities in their ledgers as if they were assets. Which is something that *has* to appear when you are a fiat money producing bank.

  20. They only prosuce liabilities but because it’s their “product” and well because that’s how modern banking (money) works it’s magically pushed to the asset side of the balance sheet. How many decades can something like that last? About 10 it seems! Only in America.

  21. FOLKS

    bottom line

    “IF you dont hold it

    YOU dont own IT”

    Eric Sprott – THANK you

    for your thoughts

    those that can stack – stack

    those that can prep – prep

    those who can do both – rock on

    because when this goes TU

    it aint going to be


    buy phyzzzzzzz & stab a banker in Da back ( they deserve nothing less )

    PS I am back on a limited baises ( internet issues )

  22. congratulations 427   I also noticed Canadian Maple leafs for just over $26 an oz   that is also a great deal since they are .9999   I’ve seen them as much as $3-5 over spot on Ebay.

  23. congratulations 427   I also noticed Canadian Maple leafs for just over $26 an oz on the same Ebay site.  that is also a great deal since they are .9999   I’ve seen them as much as $3-5 over spot on Ebay.

  24. Hears one of the site that I use for live charts and a ton of other information. I’ll try to post the Ebay buying history chart. some times this type of layout dose not post right hear so use the links and brows around.

    eBay Gold Prices

    The purpose of eBay Gold Prices is to provide a true or real gold price indicator for physical gold bullion available for delivery today and to show the premium above the spot gold price for physical gold bullion. Gold coin prices are provided for the American Gold Eagle, Krugerrand, British Sovereign and Candian Gold Maple Leaf Coins based on sales data taken from the US eBay site.

    Prices are published every other day around 2AM Pacific Standard Time (GMT -7).

    ebay Gold Prices was formally known as the eBay Precious Metals Index.

    A program was written to retrieve data from eBay for the categories shown in the eBay Gold Prices table. The program tries to filter out collectable, commemorative, and unique items. The data is manually inspected to further refine the items included in the eBay Gold Prices.

    The columns are as follows.

    # Items: the total number of items of the specific type that were sold in the last day.

    # Bids: the total number of bids on the items.

    Total oz: the total number of ounces of all items of the specific type.

    High: The highest silver or gold price paid for an item in the last day.

    Low: The lowest silver or gold price paid for an item in the last day.

    Prem %: The premium over spot gold price or spot silver price of the last Sold (High).

    Chng %: The percent change of the current (High) and last (day before) (High).

    The Gold and Silver prices are the COMEX spot gold price and silver prices at the time the eBay Gold Prices are published

  25. Wow. A lot of conversation since I called in a night. I listened to the Sprott interview again. Great interview DOC. My next dental appointment isn’t until the winter. I think I’ll move it up to this summer if possible. super read AGX and congrats. 427 on your silver lottery purchase. Glad to see ya back Yooper.

  26. Lads… Something is hapenning concerning the baillot to spain!!
    Ireland wants to renegotiate its rescue plan to
    benefit from the same treatment as Spain, which looks set to win a
    bailout for its banks without any broader economic reforms in return,
    European sources said on Saturday.

    “Ireland raised two issues: one
    is the need to ensure parity of the deal with Spain retroactively on
    its bailout from EFSF,” one European government source told AFP,
    referring to the temporary rescue fund, the European Financial Stability

    Ireland had “conditionality” imposed on its bailout — including tough conditions for the people of Ireland, where the banksters got everything they wanted.

    Spain got no such conditionality.

    the EU has a problem.  If they say “yes”, then all the other nations
    that got bailouts (including Greece) are going to want the same deal
    too.  If they say “no” then Ireland and Greece should both
    erect the middle finger and send the so-called “agreements” they signed
    back in pieces to Merkel and her buddies in Brussels.


    Posted 2012-06-09 23:51
    by Karl Denninger

    in International

  27. Hello Dino,
    I was kind of waiting for the other countries to start raising cane because Spain is getting executive treatment. This could start an ugly Euro spat that undoes the system quick if Spain doesn’t have to impose the same austerity as the other bailed out countries. Thanks for the update. I’ll check out the article.

  28. Dose anybody know the main suport to the IMF?


    IMF, US praise 100 bn euro bank deal for Spain

    “So we have a new concept. A ‘lite’ bailout with no material conditions on the sovereign and instead merely the banks that apply,” Lloyds Banking Group economist Charles Diebel said in a report.

    “This is the latest in the long list of euro measures to stem the crisis. Will it be enough? That’s questionable as it is still prevention rather than cure and again only keeps the banking sector alive rather than really supporting growth.

    “International Monetary Fund bank stress tests, unveiled Friday three days ahead of schedule, determined that Spanish banks need about 40 billion euros in new capital.

    But an IMF official noted that the banks would probably need more than that to build a “credible firewall”


  29. 427, so at least they are being honest and telling everyone the bailouts are for The Banks, and not for the country and the people who live there.  Anybody else here pick up on this point?

    Also, I can’t help but notice how each successive bailout of Greece lasted less time than the previous one.  And so the same will be true with Spain’s bailouts.

    What is that saying?  ‘The definition of insanity is to do the same thing over and over again, and expect different results.’

  30. AG Thank you for another well-written answer. Much appreciated. I absolutely agree with you, especially in terms of the handgun vs. long gun scenario. I just don’t want to spoil a good surprise. 🙂

    427 Well done on acquiring that S.D. bar. lol to George Carlin for another great show.

  31. If you took a class at Harvard taught by Carlin with nothing more than this 3 min 15 second rant, you would have gotten your money’s worth and been able to make some serious decisions based on this data. Carlin was amazingly perceptive. His comedy had some of the best lessons in life.  We only see a few like this per generation. 

    Silver Bullion.  Nothing like a little surprise for unexpected visitors. 

  32. AG;

    Carlin has been a part of our whole life. He did bring out the truth on many thing in way you had to laffe. I wonder what would be if he did not try and make us laffe.
    AG & All SD READERS!
    The movie that I posted above Obama Deception even if you seen it long ago please revisit it. Take note hear it was made 3 years ago, so now you can look and see if there was any truth to direction/predictions. If you want start it at 1:26 into it, it is important. Now look at all the new laws that have rapidly been put in place. All of our freedoms will count on the spread of information to the sleepeople. Do not cair if one wants to look at you as a doom & gloomer. And never lay down your arms, providing they have not been take already.
  33. TY 2oz!  I figured a silver mini would be appropriate.  Cat is my prepping bud; I took her to the Bahamas for her 50th birthday a few years back.  

    AG, funny you mention OOBuck.  Just last week, purchased two more 175-rd cases, total is 525, does not include the dove, duck, pheasant loads.
    SD, no one is taking my s_ _ _.  It is mine.  I have no problem providing the fight.  Many men, greater than I, have give all.  This is our freedom & country we talk about.
    I agree with Marchas45, it is the derivatives.
  34. Hi! 427 that Carlin Video is great and he knows what he talking about and Nobody Seems To Care.

    On the Obama Video which was also great and a MUST WATCH, the only honest thing Obama said was: I Wasn’t Born In A Manger. So right: In a Mud Hut more like it and in another Country.


    LMAO the last one I love it OBAMA SUCKS LMAO



  35. Re: the derivatives collapse.

    It’s already happening in slo-mo of course. What do you think the Euro bailouts are about (the latest one blatantly going to the banking sector of Spain in violation of all treaties *and* the ESM before it even came into birth)? CDSs, CDOs, MBSs. Spanish economy almost equaled “housing bubble” not all that long ago. All those retired Brits buying their “Dream house in the sun”.

    So the derivs *are* already deleveraging, but they want a controlled takedown so they can strip assets and scrape scrap. Much like a separator meat factory where a chicken goes in and out comes one stream of flesh pulp and stream of bone leftovers.

    Now of course, insolvency was never and will never be cured with (bogus) liquidity but hey, they’re so special. They’re so wise. They know what’s good for them, err, us. They’re TBTF! And we’re supposed to be their bitch. 

  36. I read the part about teeth and decided to make an appointment today since I haven’t been to a dentist in over 15 years. They had an immediate opening for a cleaning, xrays and examination, so I’m already done and back. I’m proud to say I’m 45 years old and have still never had a cavity. HOORAY!!!

  37. Loved the interview Doc!! Good job!! And Thanks for taking the time to speak with SD Eric…. Eric brings a lot of hope and knowledge to our community… We need Hundreds more like him… Meaning in position to gain the Mass public and have them pay attention… If all goes to shit in a bath basket, us stackers and preppers may be in the severe minority making us targets… All the fools out there that don’t believe or think we are nutz will be looking for us when all hell breaks wind… We may be forced to take our neighbors out just to survive… Who would have ever thought it would come to that… Who would think it would be easier to pull the trigger than to talk some sense into a neighbor or friend… We are in some fucked up times and may have to do some fucked up things when all is said and done…

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