The Relevance Of Gold - Sprott

``The outlook for gold rests squarely on the mathematics that U.S. GDP can no longer service U.S credit-market debt without fresh credit creation on the order of nearly $2.0 trillion on an annual basis.  In essence, new debt claims on this order of magnitude are now necessary to support the burden of outstanding debts... We believe quantitative easing programs reflect the Fed's tacit and comparatively recent admission that a credit-creation backstop must be provided to forestall U.S. debt defaults whenever the U.S. economy's capacity for fresh credit creation stands at low ebb.''