With continued volatility in gold, silver and oil, today King World News interviewed Rick Rule, CEO of Sprott USA. Rule told KWN the world is out of $60 oil and maybe out of $70 oil. He also said the circumstances in Greece bring up the issue of moral hazard and the situation is extremely dangerous. Here is what Rule had to say: “I don’t know if it spins out of control, but it’s clearly fraud. Greece had an engineered default, which they chose not to call a default. This is just plain fraud and if you and I tried to do this, in the context of a private issue, we would go to jail. The fact that people who operate under a sovereign do it is very strange and very dangerous.”
Rick Rule continues:
“This situation brings up the issue of moral hazard. This causes people’s behavior to change. We are now living in the era of payback for moral hazards. The idea that you have this broadly sanctioned fraud, which holds harmless the idiots who bought Greek debt, this encourages the same type of behavior.
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