- Rick Rule – The Frightening Global Ponzi Scheme Continues!
Today Rick Rule told King World News the frightening global Ponzi scheme continues. Rule also stated that he thinks, “… it’s very, very scary.” Rule, who is now part of Sprott Asset Management, also believes the current action in gold, “… will lead to a much stronger gold market.”
Rule also warned about the ongoing bank run in Europe: “… about 5% of the retail deposits in Spanish banks have been pulled out of the banks in the last two weeks.” But first, here is what Rule had to say regarding the gold market: “I’ve looked at a lot of speculation concerning the reason for the increase in the gold price in the last two or three weeks. There are a lot of factors involved. Obviously there is some fear involved, and what I think is really healthy, in terms of the price increase, is that it doesn’t seem to have come about from an increase in institutional demand, that is from hot money.”
“It doesn’t seem to be a momentum or greed trade, but rather a fear trade. These are concerns about international bank solvency or concerns about what might happen at Jackson Hole, or what might happen with quantitative easing. I think it’s constructive that the gold price is moving on fundamental news, rather than the way it moved in 2010, which was a response to institutional momentum buying. This will lead to a much stronger gold market….