TSX:SGR.UN - Post by User
Post by
halcroon Sep 21, 2015 1:30pm
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Post# 24122345
Attributed to Eric Sprott
Attributed to Eric Sprott(who we do know is heavily invested in the stock markets, especially in conjunction with 2176423 Ontario Ltd, whereby he and the numbered company held 41.8 per cent of the issued and outstanding shares of BGM as of July 8, 2015).
Sunday, September 20, 2015
Inflation is Way Beyond What is Reported
We have this constant interference by the powers-that-be to not let the markets function properly. In the bond market, its through low interest rates. I personally suspect that governments are in the stock market. We know the Japanese buy stocks. We know that the Swiss national bank buys stocks. We dont know for a fact that the US government buys stocks but there might be methods by which they can convince people to keep it together. Every time we get a little correction, it bounces right back up again.
So thats just the environment were in. Weve spent all this money. Weve taken rates as low as we can get them and were just hanging in there. Even recently we had the GDP for 2011 to 2014 revised down so that it turned out to be 2% a year. Of course the 2% is a function of the inflation rate. Say, if inflation was reported as 1% but is really 3%, then you had no growth because GDP is just a dollar number.
My own feeling is that inflation is way beyond whats reported. If inflation really was 5%, and you said GDP growth was 2%, then the real growth is -3%.
So Im not a believer that there is any economic recovery thats sustainable. I always say were trying to get liftoff. But we dont get liftoff because we havent finished the cleansing process yet.
- Eric Sprott via Proactive Investors
https://ericsprott.blogspot.ca/