Billionaire Eric Sprott – Western Central Banks Near Total Surrender

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Billionaire Eric Sprott – Entities Wiped Out Overnight As Western Central Banks Near Total Surrender

published on King World News,  on January 25, 2015

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Today billionaire Eric Sprott warned King World News that as entities are being wiped out overnight, Western central banks are nearing the point of total surrender.  This interview takes a trip down the rabbit hole of desperate central banks coming to the realization that it’s nearly game over.

Eric Sprott:  “I find it very ironic that the most volatile asset class these days is currencies.  This seems very strange with global stock markets just treading water here.  Yet we have currencies that are flailing all over the place, including the euro, yen, ruble, and the Canadian dollar.  It strikes me that we are living in a very bizarre financial world as the currency wars continue to rage with various governments and central banks.

Eric, I’ve always wondered, how do we deal with this one quadrillion dollars of derivatives?  These are tied to various instruments, including currencies.  We already saw what happened when the Swiss franc was revalued and companies went broke overnight….

You have to wonder to yourself:  How are these banks positioned in these derivatives?  We see this huge volatility in currencies and a lot of it must be by way of derivatives.  Well, this was the problem with the foreign-exchange companies that were wiped out overnight.”

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Entities See Violent Change In Their Situation

But there are derivative problems in the price of oil, emerging markets, and bond markets.  So you have to wonder:  How is thattranslating into the derivatives books of these various banks?  We have seen a lot of entities who have seen their financial situation change violently in a very short period of time.”

Radical Gold Revaluation?

Eric King:  “It was interesting that after the radical overnight revaluation of the Swiss franc that many people began to discuss the possibility of this happening in the gold market at some point — a radical overnight upside revaluation of the gold price.”

Sprott:  “We have this massive volatility in the currency markets and gold is a currency.  Gold has attracted a lot of attention here.  Something like 84 percent of the world’s population would have made money if they were invested in gold in the past year.  I think we can safely say that nearly 100 percent of the world’s population would have made money if they owned gold in the month of January.