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."