The BIGGEST Bubble- fiat currency

In this interview with The Gold Report, Sprott Resource Corp. President and CEO Kevin Bambrough—who is also Market Strategist for Sprott Asset Management Inc
KB: I think the U.S. dollar becomes almost like the hot potato no one wants to hold. As soon as a country gets dollars, if they don't want to build up the reserves, they move them off. I think we'll start to see that trend. I'm very, very bearish on the U.S. dollar and most Western currencies over the next decade or two. The biggest bubble, which doesn't get spoken of enough, is the fiat currency bubble—the fact that paper currencies, especially the U.S. dollar, are given so much buying power when they're just being run off a printing press. That's ultimately the biggest bubble of all. There will be a day of reckoning for it for sure.
TGR: Do you put the Canadian dollar in that very bearish camp as well?
KB: I think the Canadian dollar is going to be much better off than the U.S. dollar just because it is viewed somewhat as a commodity currency, but it will weaken against gold and all commodities over the long run. If countries like China diversify away from their government bond holdings, increase their holdings of precious metals and realize that there aren't enough precious metals to go around for them to diversify in a really meaningful way; I anticipate them putting more effort into building strategic reserves of other commodities, whether it's increasing their oil reserves or other metals. There's been a lot of talk lately about China stepping up and starting to replace its copper reserves at some point in the next year. I mean, really, why not stockpile these things instead of U.S. government debt and GSE debt? They really have to deal with all the Fannie and Freddie paper; why see value in that, I don't know.