When they stop buying bonds, the game is over

Watch the full 32-minute video at http://www.goldmoney.com/sprott-turk-.... Eric Sprott, Chairman of Sprott Asset Management, and James Turk, Director of the GoldMoney Foundation, talk about the short-term focus of political decisions and the bad omens for the dollar as a world reserve currency. Kicking the can down the road is increasingly not an option for bankrupt governments, as even the bond markets are increasingly uncooperative with new stimulus efforts. As an example the recent failed attempt by the EFSF to raise 3 billion.

They talk about the IMF creating $280 Billion SDRs out of thin air and ask whether that will keep the party going a bit longer.

This interview was recorded on November 4th 2011 in Munich.

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[Randall Beck]

@1:20 We are at a point where severe shocks can occur with little or no warning. Value has been established through trust; people trust those in political position, so the fundamental structures to observe should be the decisions of policy makers.

The end of the current system may occur in layers. Concern over the debt ceiling may arise in February 2013.

[eyeswideopennimrod]

It's like a group of people going to a bar and opening a tab, each person will manage that tab for 1 hour each, this requires asking for an equal amount from each in the group while still allowing the beer to flow. Each person will want the good time to keep going and not want to spoil it by asking for as much as is needed because they know someone else will take charge of the tab soon. Well it's closing time soon and we are holding the tab, fun over :(

[firefox666moll]

buy silver.

[ramjamflimflam]

I agree we need to refresh, but it staggers me to think of the toil and strife this will wreck on the lives of so many people who are ill prepared to cope.

[Deez Nuts]

woohoo first ......can't wait for the collapse so we can start over this ponsey scheme bs needs to stop