Eric Sprott: Negative Interest Rate Policy, the Death Knell of the Financial System

The Two Erics get together again on King World News, to discuss negative interest rates around the world, and the pointlessness this engenders within the current financial system.

Why should you give a pension fund manager all of your spare cash each month, when the best they can get is a negative real interest rate, and where they take a handsome fee for even this small service of draining your wealth on a continual basis?

In short, once people start to wake up and realise we live in an age of financial repression and negative interest rates, they are going to begin pulling their savings out of pension funds – the milk elephants of the financial world – and spend them instead on real wealth-holding assets, such as property, commodities, silver, or gold.

When people do this, the financial world – as it currently exists – is going to dry up and blow away, taking all of its huge salaries and legions of well-paid functionaries with it.

As someone who makes his own living out of the current financial system, as a lecturer in securities and derivatives, I take a close personal interest in these kinds of discussions between the Two Erics. You may take such an interest, too.

As well as the underlying mechanism of negative interest rates as a deliberate central bank policy in the western world, to fool the people to bail out various profligate western governments, they also spend a little time examining gold’s upcoming new status as a Tier-1 capital instrument, starting in January next year:

Here is the report to which bad boy billionaire, Mr Sprott, refers in the interview above:

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About Andy Duncan

An Austrian Internet Vigilante trying to live Outside the Asylum
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