Marketfolly reports Sprott's December Commentary: "Is It All Just a Ponzi Scheme?".
Tuesday, December 29, 2009
Sprott's December Commentary: "Is It All Just a Ponzi Scheme?"
Hedge fund firm Sprott Asset Management sent out their December market commentary a while back and we wanted to make sure everyone has seen it because it's quite a strong piece entitled, "Is It All Just a Ponzi Scheme?" in reference to the Fed. This piece comes after we learned that Sprott would be launching a physical gold trust for investors that will compete with the popular exchange traded fund, GLD. Their December commentary is also somewhat of an add-on from their October piece entitled, "Dead Government Walking." Their viewpoints on the government and their actions have become quite clear.
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You can also download the .pdf here.
We've been posting up other great market commentary from hedge funds such as Woodbine Capital with their piece Gold: The Anti-Goldilocks. Sprott is more bullish on precious metals as evidenced by their research, Gold: The Ultimate Triple-A Asset so as you can see it's always interesting to check out the varying viewpoints amongst money managers. Sprott have clearly outlined their point of view and have positioned their portfolio accordingly, taking a defensive posture.
My reaction: The answer is yes, it is all just a ponzi scheme. I also recommend downloading and reading the pdf.
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On zerohedge, they did also a research and confirmed it's possible...
It is all just a ponzi scheme. The U.S./england/Israel at the top. The blood of royalty at the top.
This ponzi scheme should have collapsed in the 70's or 80's but the chinese came in and kept the scheme going by buying our treasuries.
We passed out our dollars to the world, claiming it was worth something. They accepted it without much of a choice. It's either that or get blackballed like N. Korea/Iran/Venezuela.
But now, we don't have any more new players. China is pretty much done contributing to the scheme. Once that money dries up, there won't be enough cash to keep the game going and it should all come down like a house of cards, built without solid foundation.
That my friends is a ponzi scheme. The central bankers have used this scheme for hundreds of years, if not thousands.
Keep up the good work, Eric.
One thing occured to me to justify the passage of wealth from developing nations to developed nations. The technology was invented in the developed nations. Computers, the internet, automated machinery -- this was not created in China or Africa or South America.
Somehow under the prevailing economic system the 1st world nations developed new technology. Now you have the developing world interested in enjoying the same technology.
"Look at what you can have! All you have to do is slave for a while, and it's yours."
So we give 'em dollars, they turn around and buy stuff with it, including factories, college educations, machinery for making the cool stuff, and the technology little by little is spread over to them.
Now the 1st world nations no longer have any leg up. The developing nations can produce and advance the technology all on their own. So they don't need dollars to get into the game.
Should the 1st world nations have just given the technology to them outright? Who knows? But we're where we are.
Business as usual is not going to happen. What a great time to be alive.
btw, I sent some russian comments to you lat week, as a joke. Did they make any sense...
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