Gold is the only financial asset that isn't someone else's liability
says Doug Casey
INTERNATIONAL. Doug Casey, economist, best selling author and founder of Casey Research, says there will be a deflationary period lasting up to one year, followed by catstrophic levels of inflation caused by the US government doing the opposite of the right thing. He warns that we have not yet seen the worst of the economic crisis.
“We’re just starting to see the beginning of what’s going to happen,” Casey says.
Speaking in an exclusive interview with Dan Mangru of www.Moneynews.com Casey said: We have already entered 'the Greater Depression,' one that will be much more serious than the 1930s. “This depression can be as long and as deep as you can possibly imagine.”
Casey says the Dollar will ultimately reach its intrinsic value but in the meantime the market is waving out trillion of dollars of phony capital, from defaults in bonds, stocks, real estate, that people thought were real assets but have now disappeared. This will lead to a defaltionary period of up to one year.
At the same tme the US government is printing dollars. This is a stupid thing to do, says Casey. That’s going to continue to deplete the value of the dollar and guarantee catastrophic inflation in the future.
How can investors hedge against inflation?
“If you’re relying on the US dollar, you’re relying on a figment of the US government’s imagination,” says Casey.
“To me, holding US dollars for the long term is about the most stupid thing you can do.”
Explaining the reasons for holding gold, Casey says: “Gold is the only financial asset that isn’t someone else’s liability.”
People go to gold because they don't trust paper money which could end up having the same fate as the Zimbabwe Dollar.
Casey goes on to say it is probable gold will go above US$1000 an ounce this year.
Continued - http://www.bi-me.com/main.php?id=39359&t=1&c=62&cg=4&mset=
Complete interview - http://link.brightcove.com/services/player/bcpid31073221001?...
So, does this mean that China owns the monopoly board?
. . . . and replaces the Fed?
And never forget, “Humans, despite our artistic pretensions, our sophistication and many accomplishments, owe the fact of our existence to a six-inch layer of topsoil and the fact that it rains.”
And never forget, “Humans, despite our artistic pretensions, our sophistication and many accomplishments, owe the fact of our existence to a six-inch layer of topsoil and the fact that it rains.”
Mr. Casey Makes a Lot Of Sense.
Here are 2 more good snips:
The only way to get out of the crisis is through higher savings and improvements in technology. "You produce wealth by producing more not consuming more,' Casey says.
"The average entrepreneur in China has a lot more freedom than the average entrepreneur does in the United States. He pays a lot less taxes ... he's got a lot less regulation," says Casey.
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China has also moved up to the number one Gold producer in the world, replacing South Africa.
The IMF has announced a Gold sale of 400 tonnes in 2010,,,watch China buy up most of it. They may be positioning themselves to replace the un backed American dollars with Gold backed Chinese money, which the world will gladly accept, in my opinion.
Spread the wealth through out the world by using sound money ! Gold/Silver !
beesting