Wednesday, October 13, 2010

Doug Casey on the Violence of the Storm, the Destruction of the Middle Class and the Coming Gold Standard

Daily Bell: Are we still headed for a Greater Depression?
Doug Casey: There is no question about that as far as I am concerned. The Greater Depression has started in earnest. Let's define the term. A depression is a period of time when most people's standard of living drops significantly; that's actually happening in the United States. Another definition of a depression is a period of time when distortions and misallocations of capital in the economy are liquidated – that happens largely through bankruptcies and unemployment. Both of those things are already high, and are going to increase significantly. Regrettably, and unnecessarily, the Greater Depression is going to last a long time. It was caused by government intervention in the economy, and the government is ensuring it will go on much longer than need be. We can't talk about recovery in a matter of months or even in a couple of years. I'm afraid this is going to be quite dismal for a lot of people ...
Daily Bell: You indicated we were in the eye of the storm in the summer. Are we emerging on the other side?
Doug Casey: I think as we come out the other side of the hurricane, it's going to be much more violent and longer lasting and further reaching than it was in 2007 and 2008 when it was quite unpleasant, so hang on to your hat. They've likely averted a deflation but have almost guaranteed very high levels of inflation. But it's not all gloom and doom. Many individuals will continue creating capital, and technology will continue advancing.
Daily Bell: Where is gold headed?
Doug Casey: I have been a gold bug philosophically for many, many years, but not always a gold bull. The higher something goes, generally, the less I like it. Although I always keep in mind that "the trend is your friend," I'm essentially a value buyer, not a trend follower. But the fact of the matter is, I don't know what else you can be in besides gold, and silver today. We are in a strange twilight zone right now, where there are no bargains in the world right now, everything seems to be over-priced. Gold itself is not cheap anymore, the way it was 10 years ago. But on the other hand, the gold bull market is intact and I think it is going significantly higher for a lot of reasons. You've got to own gold. It's the only financial asset that's not simultaneously someone else's liability. What's really hard to understand are "dollar bugs."
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  1. Most of us are fortunate if we have a couple hunderd bucks left over after we are done with bills etc. Gold is out of reach for most of us and that is reality. A little bit of silver maybe. Some food and other things we need stored up, yes. Lots of people won't even do that!!

  2. Lots of people won't even do that because they're asleep....or really just don't think anything bad will happen in the good 'ol US of A....

  3. It doesn't matter what the RICH own if we have CLASS WARFARE because they won't have it long no matter what political or economic theology they worship.
    Do the RICH ELITE think this will end well???

  4. China, Iran, Russia and India are betting the US will go down for the currency count. Gold is king.

  5. Gold is king.

    Yes it is,... yes it is. And it is stepping back onto its rightful throne.

  6. OMG anyone see the silver/gold surge in just the last 4 hours? Silver up $1.12/oz Gold up $31.89/oz. The death of the dollar maybe coming this week!

  7. yeah savers will be hardest hit this time next yr..already hard hit now with basics up and going up. didn't ben franklin mention that's the beauty of paper money, can be based and debased at will to suit gov's need...course those old continentals became worthless didn't they...they always go to far in playing with the currency and this one's global...oops
    "not worth a continental..doller"

  8. Best 7 comments yet...consistent and correct!!!

  9. Shadow Stats now says un- and under-employment is about 23%. Also that the latest gov't statistics about price inflation of 1.5% is a lie and it's really 10%. If you have any money left over, stock up now on what you need because prices are still going up thanks to the FED. And rather than gold and silver certificates, buy jewelry.

  10. I dont see how even a cheap cash deal on
    jewelry is good...gems maybe? but the markup
    over the metal cost is high...why not just
    one ounce silver eagles? isnt that a good
    wel known and identifiable medium of transfer?

  11. What about all the folks hoarding gold?

    Aren't they afraid the feds will seize it?

    Have the feds ever seized silver?

  12. Feds never called silver. Gold wasnt seized; that implies taking without compensation. people
    were paid for the gold, but then the feds changed the price and devalued the dollar.
    Collector coins did not have to be turned in.
    I have proof of a 150 acre farm being bought
    in the 1930s for a coin collection. GOLD...
    WITH IT.


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