After years of recovery, albeit the weakest since WWII, Doug Casey continues to predict a “Greater Recession” ahead. While Casey and the Peter Schiff’s of the world have been wrong for many years, it is worthwhile to review these mindsets as both economic forecasters have been proven hugely right in the past.
What is this going to look like to the man on the street when the economy melts down again? Financial expert Doug Casey says,
“The country has been living way above its means. The U.S. runs about a trillion dollar trade deficit with the rest of the world, but it’s a great deal for us. The U.S. prints up dollars and we ship them dollars, and they send us Sonys and Mercedes and coffee and all sorts of things imported into this country, but that can’t go on forever. So, what’s it going to look like? It will be very high levels of inflation. In 2007 to 2009, people lost their jobs. When a society is living above its means, people like waiters and bartenders . . . they’re fired because people are going to have to do those things for themselves. So, you are going to see lots of unemployment. There could be a lot of social upsets in this country.”
What about gold and silver? Casey says,
“A number of governments around the world, not the U.S. but the Russians and the Chinese, are buying a lot of gold. Why? Because it’s the only financial asset that is not simultaneously somebody else’s liability. It doesn’t matter whether we have runaway inflation or catastrophic deflation, the gold is there. It’s an actual asset unlike the paper governments’ print up. There is no point in owning paper today because interest rates are so low. Interest rates are below the level of actual inflation at this point. People should buy gold and they should buy silver. . . . They’re going to both go up. I’ll say this again, gold and silver are the only assets that are not simultaneously someone else’s liability. So, there is going to be a panic into them at some point, and some point soon I think.”
Join Greg Hunter as he goes One-On-One with financial expert Doug Casey and the best-selling author of his new novel called “Speculator.”