Rule - Greek Bailout & What it Means for Gold

February 21, 2012

On the heels of a Greek bailout, which has gold trading more than $20 higher and silver back above $34, today King World News interviewed Rick Rule, CEO of Sprott USA. Rick spoke with KWN about what has just taken place with Greece and what it means for gold. Here is what Rule had to say: “I don’t think Greece was bailed out, I think the banks that were stupid enough to lend Greece money were just bailed out. They have talked about an injection of fresh cash to maintain Greek living standards. Simultaneously, they have announced fairly aggressive cuts.”
Rick Rule continues:

“They are aiming at slashing the debt to 120% of GDP by 2020. This means if you believe that all of the assumptions they made are correct, then Greek debt will go from unserviceable to barely serviceable by 2020. It’s important to remember that the people who are making these assumptions are the same people who made the decision to lend money to Greece in the first place. This lending has Greece 160% in debt vs their GDP.

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