As the world sinks deeper into what he calls the Greater Depression, Casey Research Chairman Doug Casey sees default on the U.S. national debt as inevitable -- albeit probably in the guise of currency destruction. He anticipates further contraction in real estate, particularly on the commercial front. As long as stocks remain overpriced, he'll shy away from equities -- except perhaps in favored sectors, such as gold. In fact, in this exclusive interview with The Gold Report, Doug posits that gold juniors might "go up by an order of magnitude or more, even while most other stocks are going down."
The Gold Report: Doug, at a recent conference you said that the U.S. ought to default on its national debt now. Why that rather than letting it play out?
Doug Casey: Several other things almost equally radical should be done besides defaulting on the debt. I recognize that an outright default is most unlikely, but the national debt should be defaulted on for several reasons.
To start with, once the U.S. government defaults on its debt, people will think twice before lending it any more money; giving politicians the ability to borrow is like giving a teenager a bottle of whisky and the keys to a Corvette. A second reason is that the debt is an albatross around the necks of the next several generations; it's criminal to make indentured servants out of people who aren't even born yet. A third reason would be to overtly punish those who have been lending money to the government, enabling it to do all the stupid and destructive things that the government does with that money.
The debt will be defaulted on one way or another. The trouble is they're almost certainly going to default on it through inflation, by destroying the currency, which is much worse than defaulting on it overtly. That's because inflation will wipe out the relatively few people who are prudent in this country, those who are actually saving money. Because they generally save in the form of dollars, they're going to wipe them out financially.
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Had a bad day, don't talk to me,
ReplyDeletegonna ride this out,
My little black heart, breaks apart,
with your big mouth.
And I'm sick of my sickness
Don't touch me, you'll get this.
I'm useless, lazy, perverted,
and you HATE me.
You can't save me,
You can't change me,
Well I'm waiting for my WAKE-UP call,
And everything, everything's my fault.
Went to the doctor, and I asked her,
to make this stop. (whoa)
Got medication, a new addiction,
F-ing thanks a lot.
I had to relapse, I'm bad at rehabs
It ruins everything. (whoa)
So point your finger, at the singer,
He's in the pharmacy.
You can't save me,
You can't change me,
Well I'm waiting for my wake up call,
and everything's my fault.
You can't save me,
You can't blame me,
Well I'm waiting here to take a fall,
and everything, and everything's my fault.
And I'm a death threat haven't slept yet,
Baby why the wake up call
I'm the bad boy tell the TABLOIDS
everything's my fault.
Whoa whoa whoa yeah, WRITE IT write it,
Whoa Whoa whoa everything's my fault,
everything's my fault.
I went to Heaven, but couldn't get in,
For what I have done.
I said please take me, they said You're Crazy
you were TOO MUCH FUN.
You can't save me,
You can't change me,
Well I'm waiting for my wake up call,
and everything's my fault.
You can't save me,
You can't blame me,
Well I'm waiting here to take a fall,
and everything, everything's my fault.
You can't save me,
You can't change me,
You can't save me,
You can't change me,
You can't save me,
You can't change me,(everything's my fault)
You can't save me,
You can't change me,
Everything's MY FAULT.
youtube.com/watch?v=vSVou7AZebQ
Party aint over yet, folks... Still lots of death, destruciones and treachory coming to a USA near you. A Default will mean some kind of war, also the money train is just getting warmed up, we have TRILLIONS more before any Default... Bank on it.
This man is brillant. Excellent analysis. Just wait and see.
ReplyDeleteHey this is america, they never do things right. There will be tons of pain to go around.
ReplyDeleteYet there are many still out there who think they have a leg up and are immune to what is coming because of there 700+ credit score and savings.
ReplyDeletePretty dumb idea, since the minute the US announces its going to default it would be the end of the US, and the standard of living for all Americans will take a nose dive.
ReplyDeleteI much rather have the US continuing the game until it physically can't anymore. Why would anyone want:
1. End of Oil imports into the US. leaving no fuel for your car, bus, train, etc to operate
2. Rolling electrical blackouts lasting days (if we are lucky
3. Empty store shelfs and no food (no fuel to transport food, and no fuel to run tractors).
4. No jobs, unemployment greater than 90%
5. No firemen, or police to provide security.
Read what happened during the Soviet Union collapse. Only there won't be any bailout by the IMF, ECB, etc for the US, we will be on our own. Unlike us, when the Soviet Union collapsed they were a net energy exports (still are today). Oil wasn't a problem for Russia, but it will be a huge problem for the US.
Doug Casey has a one track mind, and just wants gold to go to the moon. He doesn't consider the real consequences of a US default, and think's his PM investments will save him. I doubt that very much, since if the US defaulted, it would also confiscate all PMs in exchange to purchase Fuel imports to keeps atleast some trucks and tractors fueled to supply food. You can't eat gold or silver. Since Doug Casey is a high-profile gold bug, no doubt that the gov't put Doug near the top of thier list to confiscate his PMs.
PM confiscation can't happen. The population is way too well armed and won't tolerate the government stealing any more from them.
ReplyDelete11:14 you honestly believe people will give up their gold when a employee comes to the door? Here take my gold please and thanks. The faster the US defaults and it's INEVITABLE, the quicker we can go on with life instead of a thousand cuts.
ReplyDeleteDemocrats will meekly and obediently do whatever the Obama administration tells them to do. If he tells them to turn in their PMs, they will. They have been conditioned to never question the orders of the Democratic party in exchange for a unionized job and a steady paycheck.
ReplyDeleteYou guys who don't think the govt. can confiscate gold need to break out your history books. There were severe jail penalties for not turning it over when FDR did a recall.
ReplyDelete3:33
ReplyDeleteAsk yourself only one question.
HOW will THEY know you have it ?
Do THEY know how many rolls of toilet paper are in your bathroom right now ?
HOW would THEY find that information out ?
Don't be a complete 2nd grader here - time to grow up a little bit
You won't be able to spend gold if they make ownership illegal. If you are caught, you go to prision for ten years or more. They will post whistleblower rewards for people that turn in those holding gold.
ReplyDeleteLets say you go to purchase something with a gold coin. The seller takes your gold, turns the gold over to the gov't and gets a reward, plus a percentage (in paper money of course) of the gold the feds find in your possession when the raid your home in the middle of night and haul your butt to jail. Siezing all of your assets, including your home, bank accounts, etc. All the gov't has to do is make an incentive for people to turn in information that leads to a hoard go gold coins.
Have you already told your friends and neighbors that your bought gold? What are the odds that at least one of them will turn your in to collect a whistleblowers payment? And even if they are 100% trust worthy what are the odds that they meantioned it to someone they know, co-worker, family member, etc. (ie in casual conversation: "my Friend Steve got screwed because he bought a bunch of gold coins before the gov't made it illegal"...Or my friend Steve told be several years ago that he bought a bunch of gold coins".. or something along the lines)
Back in 1933 when FDR made gold ownership illegal The gov't forced everyone to present the contents of their safety deposit boxes. If you didn't show up, they simply confiscated your safety deposit box.
So if gold is made illegal, it will be worthless, since you don't know who you can trust. You can't go into the supermarket or the gas station and buy stuff. Perhaps if you can get it out of the country, but that will probably difficult, and the US will probably demand that foriegn banks turn over bank records for all US citizens as the did last year with US citizens that had swiss bank accounts. Plus you don't know which countries will follow the US making gold illegal so they can repose foriegner owner bank accounts. At the top of the list I would expect Austrialia, England, Most EU states, China and most south asian nations to follow it. Anyone nation that imports energy or food and has a large amount of US assets (ie in US treasury bonds).
The bottom line is there is no safe heaven. Gold bugs will get burned just like everyone else
Our current situation is the result of Reaganomics! I hope he's happy in Hell!
ReplyDelete"Our current situation is the result of Reaganomics! I hope he's happy in Hell!"
ReplyDeleteNo its not. The situation was began more than 40 years ago with LJB guns and butter policy, and industrialization of the third world. The third world has a vast nearly unlimited supply of cheap labor, with workers willing to work for 10 cents an hour, no worker safety, and no pollution laws to prevent mass dumping of toxic waste into the water and air.
The second issue is declining resources and over population. The US is about 50% over populated, yet americans go on having boat loads of babies, excerbating the problem.
funny how quickly people forget, they want to hurry up and get it over with but there is many things they are not considering such as in the depresson your kids gets a common cold and it can very easily be fatal cause you can get medical attention, and pm's would be worthless reasons were mentioned above, there is the barter system it works very well but it's also a pain in the butt. not to mention desprate people do desprate things so populated areas will be very dangerous to the meek and unarmed. those who can will take to the wild and possibly build small communitys which they can stay off the radar. soldiers will only work so long without a paycheck then there will be rogue military units doing what they have to to get by. this is just crap off the top of my head, what are other countries that are better off than us gonna do when we can nolonger protect our borders. just a few things to think about.
ReplyDelete