There is a lot of truth in the article, but also some misses. The writer is correct about the PTB continuing to walk the tightrope between inflation and deflation. They are successful so far stopping both from going into a runaway.
I think they can do this for much longer than most people like the writer believe.
Most Popular
1.Why The Government Is Destroying The U.S. Dollar - Dan_Amerman
2.Economic Collapse, We Still Dont Get It - Andy_Sutton
3.Stock Market Kiss of Death, Get Out the Popcorn, The Show is About to Begin - Anthony_Cherniawski
4.What to Do When Every Market Is Manipulated, Hint: cut the strings - Dr_Martenson
5.Stock Market Running On Empty! - UnpuncturedCycle
6.UK CPI Inflation Rise Surprises Mainstream Press, Illustrates Olympics Lasting Debt Legacy -Nadeem_Walayat
7.The Hitch-Hiker’s Guide to Markets, Inflation and Deflation Over the Next 8 Years - David_Petch
8.Gold Price Disillusionment - Jan_Skoyles
9.Signs of Collapse Mr. President, What the Last Roman Emperor Would Tell Obama Today - Keith Fitz-Gerald
10.Gold in Stocks Bear Market - Zeal_LLC
Last 5 Days Analysis
The Day of Economic Reckoning Is Near - 25th Aug 12
Gold Coins Render Unto Caesar - 25th Aug 12
U.S. Economy: The Financial Tectonic Plates Are Shifting Once Again - 25th Aug 12
Gold Futures Contrary Speculation - 25th Aug 12
Investor Opportunity Before The Financial Storm - 25th Aug 12
U.S. Water Shortages to Impact Power Supply - 25th Aug 12
Gold and the $600 Billion Question - 24th Aug 12
Gold Is in Very Strong Bull Market - 24th Aug 12
Why Gold Minings Still a Great Place to Make Money - 24th Aug 12
Gold and Silver Perfect Storm As MSGM Risks Align - 24th Aug 12
Even the Eurozone Debt Crisis Gets a Vacation But Not For Long - 24th Aug 12
Welcome to Soviet America, Naomi Wolf on the Crackdown of Dissent - 24th Aug 12
Professor Bernankes Terrifying Blindness on the Great Depression - 24th Aug 12
Gold vs Stocks, Are You The Markets Sucker? - 24th Aug 12
Why Uranium Prices Will Spike in 2013 - 24th Aug 12
The Key to Huge Biotech Profits - 24th Aug 12
Fixing the U.S. Mortgage Market Mess - 23rd Aug 12
What Do the Rise and Fall of Empires Suggest? - 23rd Aug 12
Gold And Platinum Surge As Mining Unrest Spreads - 23rd Aug 12
Post FOMC Market Analysis and Trade Setups - 23rd Aug 12
A History of Exchange-rate Regimes Infographic - 23rd Aug 12
Science Wrestles With A Crisis Worse Than Global Warming - 23rd Aug 12
Is Germany Entering a Recession? - 23rd Aug 12
What Happened To The Debt? - 22nd Aug 12
Four of the Best Currencies to Invest in for 2012 - 22nd Aug 12
Gold for Escape from Slavery - 22nd Aug 12
Who Rules America? Class Warfare in 2012 - 22nd Aug 12
America Governed by Organized Crime! - 22nd Aug 12
Power Politics vs. American Prosperity - 22nd Aug 12
Going Beyond The Global Financial Crisis, Self-Assembling Dynamic Networks - 22nd Aug 12
The Only Way to Win with Gold Stocks - 22nd Aug 12
Adding Technical Indicators To Dividend Stock Selection Increases Total Returns - 22nd Aug 12
Dividends Provide An Stock Investors Return Bonus - 22nd Aug 12
Busting the Peak Oil Myth - 22nd Aug 12
Investing in Companies to Play Rising Natural Gas Price - 21st Aug 12
How to Be Safely Diversified and Earn Hefty Dividend Yields - 21st Aug 12
Gold and Silver Shine on Weaker U.S. Dollar - 21st Aug 12
Gold Love Trade Cools as Central Banks Gold Demand Heats Up - 21st Aug 12
Foundations of Successful Trading - “The Commodity Markets Take No Prisoners” - 21st Aug 12
Gold Price Forecast, Indian Demand Shifting Trends - 21st Aug 12
Copper Prices Signaling Stock Market Top - 21st Aug 12
Significant Stock Market Top, Next Leg Down: Export led World Economic Collapse UNDERWAY - 21st Aug 12
The Romney and Netanyahu Brotherhood - 21st Aug 12
The French Fake Global Warming ‘Crisis’ - 21st Aug 12
These Biotech Firms Will Literally Change the World - 20th Aug 12
What Skirt Lengths Tell You About The Stock Market - 20th Aug 12
U.S. Extortion Against Standard Chartered Bank Shows Bias Against Iran - 20th Aug 12
Trade of the Year - Gold Versus Paper - 20th Aug 12
India Power Black Out: The Shape of Things to Come? - 20th Aug 12
Bernanke’s Dual Mandate Trap - 20th Aug 12
Ubiquity, Complexity Theory, and Sandpiles, How Change Happens - 19th Aug 12
Financial Markets, Politics, and the New Reality - 19th Aug 12
Gold $2,000 Will Soon Kickstart Mining Shares - 19th Aug 12
Labour Sheffield Council Black Bins Collections 50% Cut Encouraging Fly Tipping, Veolia Profits Jump 18.4% - 19th Aug 12
Market Manipulation, What Do Stocks Get That Credit and Bonds Dont? - 18th Aug 12
What The MainStream Media is Hiding from Investors - 18th Aug 12
Canadas Housing Market Boom Or Bust? - 18th Aug 12
Gold in Stocks Bear Market - 18th Aug 12
Free Instant Analysis
Market Oracle FREE Newsletter
Subscribe Now
The Day of Economic Reckoning Is Near
Economics / Great Depression IIAug 25, 2012 - 01:23 PM
By: The_Gold_Report
It is a deal with the devil: Governments churn out more and more cash for the promise of continued prosperity. But the day of reckoning is near, according to Doug Casey, chairman of Casey Research and an expert on crisis investing. As the epic battle between inflation and deflation continues on, Casey discusses his predictions for the new world market in this exclusive interview with The Gold Report.
The Gold Report: There will be a Casey Research Summit on “Navigating the Politicized Economy” in Carlsbad, Calif., in September. The thesis behind the summit is that governments have made a Faustian bargain, a pact with the devil, that saves the empire with overspending, but drives it to the brink of collapse by creating fiat currencies. Doug, where in that story is the economy currently?
Doug Casey: It’s extremely late in the day. Since World War II, and especially since 1971 when the link between the dollar and gold was broken, governments around the world have accepted the Keynesian theory of economics, which boils down to a belief that printing money can stimulate the economy and create prosperity. The result has been to create huge amounts of individual and government debt. It’s become insupportable. All it has done is purchase a few extra years of artificial prosperity, and we’re heading deeper into a very real depression as a result.
“Let me define the word depression. It’s a period of time when most peoples’ standard of living declines significantly.”
This is an important statement. My favorite word in the second sentence is “most”. The secret is to be in the minority in this case. Barring that, one must fall back to the idea of losing less than most others.
I think we are headed for mild inflation, not hyper or even high inflation.
The writer never touches on the most important new change in the world, one that can save America given the right leadership. Rapid development of America’s energy potential is the best way through the coming problems. Millions of jobs that actually produce things are just waiting to be activated. This would lower the price of oil, and keep the price of nat gas low.
America can break OPEC and rule the energy markets. What is required is an administration willing to work with the energy industry instead of against it. This doesn’t mean all peaches and cream in the near future, but it could cushion the worst part of the depression and help turn things around.
We have the technology and the labor base. We just need the political will to use both to our advantage.
Sorry, had some kind of copy and paste glitch above. Apologies.