Eric Sprott: Gold Momentum's Picking Up Dramatically

The Gold Report: You have written quite a bit about the U.S. government's growing debt and a whole bunch on unfunded liabilities leading to a default on obligations or printing more money.

Eric Sprott: There aren't too many choices when you're in debt to the level that the U.S. government is. As we've outlined in some of our recent articles, one way of calculating it says there's $72 trillion of debt and other way suggests it is $100 trillion. It's almost academic which calculation you use; it's just an overwhelmingly serious problem.

Thank goodness we have a zero interest rate policy. Otherwise, the cost of those obligations would be unbearable. As we analyze where we are and look at all the things that the administration is doing, it certainly seems that they're going to try to spend their way out of it. Last week's announcement regarding the extension of the homeowner credit, in addition to giving corporations loss carry-backs while paying unemployment benefits for an additional 20 weeks—these are all signs of trying to spend their way out of it. It is looking more and more like it will be an inflationary scenario. It could even be hyperinflationary. (more)