Sprott warns of history's biggest Ponzi scheme

Eric Sprott, the chairman of Sprott Asset Management, says the US is currently mired in the "biggest Ponzi scheme of all-time," and claims that the recent release of Fed minutes was simply a ploy to restrain inflation.

Speaking to King World News Sprott says that the purpose of the release of Federal Reserve meeting minutes evincing a desire to end QE3 before the end of the year was simply for the purpose of "keep[ing] the real indicators of inflation at bay."

Sprott nonetheless believes that money printing by Western central banks will continue unabated, as will its deleterious effects upon the economy and a concomitant rise in prices for precious bullion:

If everyone continues to print like they have, and there is certainly no sense that anyone is stopping, in fact, there is even more printing now than the last time we spoke and by a large factor, the price of gold and silver have to go to new highs here. That’s fully what I expect to see happen this year.

The veteran investor further claims that 2013 could be the year that "the biggest Ponzi scheme of all-time" finally unravels, following almost five years of stimulus in the US and more than a decade of similar measures in a stagnant Japan.

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