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“Something has to be done because it’s totally out of
control these days. I mean you can’t
have bank runs like we’re seeing. The one thing the powers that be,
the central banks and the governments,
have tried to do is to avoid what I call a ‘Liquidation Event.’
Ever since we saw what
happened when Lehman was liquidated,
they realized we can’t go there. Fannie was taken over as well as AIG and GM
to prevent this liquidity event. But I think the market is just liquidating,
irrespective of whether
the powers that be want it
or not.
I just think that process is picking up into a tsunami
and the world will start focusing back again on precious metals."
Eric Sprott, interview
at King World News
I tend to agree with
Eric. If the markets see Greece slip out of the Euro and fold
its debts up and toss them away,
the consequences for the banks
and debt in some of the other Euro countries are going
to be enormous.
They are deathly afraid of uncontrolled runs on the banks. And even moreso, they are concerned of contagion
to US and UK banks, and a run
on the currencies. At the
end of the day, when the fundamentals are shot to hell, its all down to running a
confidence game.
That is why I think that they
will fight the inclusion
of gold and silver in the world currency
systems tooth and nail. Once you open the door to alternatives, you erode the span of your control. And that is fatal to an overextended
control fraud, which is what the paper
financial markets look like today.
And that is why the price of gold and silver have to be controlled. They have an
objective, but they need
to avoid panics and sudden
uncontrolled movements from the chose path to reach it.
The key word is 'orderly.'
Make no mistake and have
no illusions. For all their bravado,
I think these guys are scared shitless. You can have faith in your free market gurus I'm sure. Faith that they
will drop you a postcard of gratitude and encouragement from Paraguay and Switzerland,
Abu Dhabi and Singapore.
And when they inevitably lose control it could go quite
a few ways, but no matter
which way it goes, it
is likely to be memorable.
 
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