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Doug Casey believes that the Federal Reserve has created a catastrophe — and it’s the average person who is going to get hurt the worst. The dollar is going to be destroyed, the bond market is in a super bubble, the stock market is grossly overpriced, and the powers-that-be are only going to create more bubbles in the future.
In this exclusive interview with Birch Gold Group, see why Casey says people should buy gold to protect themselves against the economy.
Sheldon Anderson: This is Sheldon Anderson working for Birch Gold. Working with Doug Casey. And I wondered, you know, you’ve written investing books on how to invest in crisis, and in the 90’s again in crisis.Doug Casey: Yeah.
Sheldon Anderson: What about given the state of the economy now, what kind of impressions do you…
Doug Casey: You know, it’s going to be a s**t storm. That’s all I can say.
[The economy is] going to be a s**t storm. That’s all I can say.
Sheldon Anderson: So, what do you think people can do right now to protect themselves?
Doug Casey: I’d buy gold.
Sheldon Anderson: So you’re somebody that obviously believes in gold. What are your thoughts on what the Federal Reserve has done to the dollar over the past decade?
Doug Casey: It’s a catastrophe. They’re going to wind up destroying it. The Federal Reserve should be abolished.
Sheldon Anderson: What does that look like for the individual at the end day and how does that destruction manifest?
Doug Casey: Well, it means that the average person’s gonna get hurt worse than anybody. Because the average person doesn’t have the knowledge. He doesn’t have, can’t hire the lawyers, the accountants, the investment advisers to protect themselves from the destruction of the currency. The average person mostly just holds dollars. If he has any money at all. So he’s gonna get hurt worse. It’s just going to finish the destruction of the American middle class.
The average person’s gonna get hurt worse than anybody… It’s just going to finish the destruction of the American middle class.
Sheldon Anderson: I talked to a lot of people that say, “But, we don’t know when it’s going to happen.” And for those people that are waiting for something to manifest, a crisis in the market, what would you say they would do prior to that?
Doug Casey: You know, get out of the bond market. That’s a super bubble. I think the stock market is grossly overpriced, it’s a bubble. And learn to speculate because they’re going to be creating a lot more bubbles in the future.
Sheldon Anderson: If a person only knew that they needed to get out of those markets, and you thought they should get into gold, do you advocate a percentage? Do you tell them what they can do aside from gold? What do you say to those people?
Doug Casey: No. I look at all markets. I look at commodities. I look at world stock markets. I look at the world real estate market. And I’m actually involved in all of those things. But at this particular time, you should have a significant amount of money — not just 5% percent — but a significant amount of money in gold because it’s the only financial asset that’s not simultaneously somebody else’s liability.
At this particular time, you should have a significant amount of money — not just 5% percent — but a significant amount of money in gold because it’s the only financial asset that’s not simultaneously somebody else’s liability.
Sheldon Anderson: What do you think about the derivatives market, and how the system itself might be at risk to something like that?
Doug Casey: I think Buffett is right. It’s a hydrogen bomb waiting to explode.
Sheldon Anderson: What do you think will be the catalyst for that to begin to unravel?
Doug Casey: It’s hard to say. Somebody defaults. They can’t pay the next guy. That guy can’t pay the next guy. It’s a long daisy chain. That’s the problem.
Sheldon Anderson: Okay. Thanks so much for your time.