From reader WJ:

Today billionaire Eric Sprott warned King World News that the entire global financial system is now facing the greatest danger in history. He then issued the most dire prediction of 2015.

Eric King: “We had (the stock market collapse) of 2001 – 2003. Then we had (the more intense collapse of) 2007, 2008, 2009. The next one (collapse) is going to be worse because that’s just how these cycles progress. As you know, they (seizures in the global financial system) get more violent and the collapses become more and more intense. People couldn’t imagine it would get worse than 2001 – 2003, and yet we had 2007 – 2009. This one that’s in front of us, I’m assuming it's going to be the mother of all collapses.”

Eric Sprott: “Two words that come to my mind, Eric, ‘No bid.’ In other words, if you take the central planners out of the market, there is no bid….

It’s So Preposterous

“So who’s going to buy it? Who in their right mind would be buying bonds with a negative yield? It’s just so preposterous. And all of the sudden if the bond buyer is not there — we used to think it was so great that China would buy our bonds. They don’t buy our bonds (anymore). Russia used to buy our bonds — they (now) sell our bonds.

King World News - This Is The First Time We've Seen This Major Warning Signal In 8 Years

No Bid Means Collapse

The only entities buying the bonds are the central banks. Well, you take the central bank out of it and there’s no bid. That’s why I use the phrase, ‘I hope we are not right one day,’ that all of the sudden it (the entire global financial system) just collapses.

King World News Sprott I 3:13:2015

Game Over

They (central banks) may just look in the cupboard and say, ‘It’s over. We’ve tried our best and it’s not working. We’ve got to stop buying these bonds because our (central bank) balance sheets are getting so torqued out.’

King World News Sprott II 3:14:2015

It Will Have To Stop

The Debt/GDP numbers are getting so egregious that at some point they will have to stop. It’s a lot like when Greece finally came out and said, ‘We’re a bankrupt state.’ Well, yes, we knew you were a bankrupt state and finally somebody admitted it and he won’t be the last guy either. (Laughter).

KWN Fitzwilson VI 2:22:2015

More Bankrupt Countries

There will be lots of those coming along because every country has done the same thing: increase the debt, GDP goes down and tax revenue goes down — ‘Hey, I can’t pay you back.’ That’s the definition of bankruptcy — ‘I can’t pay you back.’ Just like the U.S. government is not going to be able to honor their promises!

KWN Roberts VII 2:23:2015

Central Banks Controlling Markets

When are they (the U.S. government) finally going to say they can’t pay you back? I don’t know when that’s going to happen but I can be as patient as Janet Yellen can. I don’t know when that day comes, Eric, but we see signs of it everyday. And we keep wondering how the market holds itself together? I’m sure the central planners are involved.

If it was up to me to try to keep the market up, I would put an order in to buy the S&P futures for $100 million or $1 billion, or whatever the number is, send it down the slowest pipe I can — everybody front-runs me and the market miraculously goes up because of all the high-frequency traders (HFTs) trying to beat me to the punch.