Doug Casey: "We Are Living In The Middle Of The Biggest Bubble In History."

Tyler Durden's picture

The recovery since the 2008 financial crisis is just an illusion created by the papering-over of our insolvency by central-bank printing. Doug Casey adds that the current state is akin to being "in the eye of the hurricane thanks to this 'cover'" and believes the printing which will ultimately lead to very high inflation once bank lending starts to pick up again. This excellent interview moves from Casey's view of a looming loss of confidence in the dollar (and the impact of mass repatriation) to what must the Keynesians be thinking as the "apparency of prosperity" remains all that we have to lift animal spirits. With an eye to gold (and non-western central banks behavior towards it as they realize "the USD is just an unsecured liability of a bankrupt government"), he evaluates the likelihood of a western economic collapse in 2013 and what that would imply for an implicit gold standard in the world. From Austrian economist Hans Herman-Hoppe's view of a post-Keynesian-crash era to his potential triggers for this collapse (such as gold-energy barter and non-dollar blocs), Casey succinctly reminds us that there is not just one asset-class bubble but that "we are living in the middle of the biggest bubble in history."


Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
derek_vineyard's picture

why does money honey give a frick about retirement.......she gets w/e she wants via old school her networking method to find gross pigs w/ big wallets.  i tink jamie d. is perfect for her.

Randall Cabot's picture

"We Are Living In The Middle Of The Biggest Bubble In History."

Is he saying we're only halfway through it?

WmMcK's picture

A dog can only run halfway into the woods ...

hidingfromhelis's picture

Since bears shit in the woods, I guess we're in the middle of the shit.  

TWSceptic's picture

Just because you woke up from the Matrix doesn't mean people should stop talking about it. What about showing some respect for people who understood all this long before you did.

Capitalist Exploits's picture

Doug says it like it needs saying. Love his philosophy. here is another recent one with him on "the virtues of capitalism"

Snakeeyes's picture

We never really got over the housing bubble, and now The Fed is propping up a mega bubble of ALL assets.

Queue the Shirley Bassey song "Goldfinger."

localsavage's picture

Tungsten Standard > Gold Standard

kliguy38's picture

Of course they are keenly aware of the tungsten problem....and it will not surface again. The lack of unallocated gold is now the only issue and cannot be adjusted. If you believe its just going to "go away" with manipulation then you don't understand the intricacies of the Currency Wars. Gold is at the heart of the problem and it is the Achilles heal of the Ponzi. But here is what is going to disturb you the most. Three guesses who has control of the bulk of the bullion? That's guessed it. When the time is right they will reset.

savagegoose's picture

oh you mean the bankers? fuck this shit. ill work for hash  not gold.

Tango in the Blight's picture

The Rothschilds and their ilk having more than half the world's gold supply (which of course doesn't show up in any statistic)? Maybe a gold standard is just what they want as the Golden Rule states: "He who has the most gold rules."

gdogus erectus's picture

Exactly. That they will take out so many banks at the same time as wiping out so many savers who don't own gold is but a bonus. Will distract most of us into thinking the bad guys got taken out too. No- just a few of their lieutenants. The cochroaches will be back behind some new gold backed central bank. This is why I like silver better. I think it's their Achilles heel since they don't have much of it.

Inthemix96's picture


The amount of folk now, in real time thanks to this cursed interweb, who know all about the rothchilds, rockefellors etc etc.  And increasing at an exponential rate daily?

Sorry mate, the genie is well and truly out the bottle.  We go down?  I can give you a cast in iron guarantee that they come with us, not for all the fucking gold in the world do they come before my kids, and a whole load of other folk are well aware of this.  This jig is up, (almost), and if we go, they go.

There are no winners here mate, none at all.

FEDbuster's picture

That is why right now they don't care about your gold or silver, they want your guns and ammo.  Then they will take away your food, they always do.  When you are hungry and defenseless (offenseless?), then they will trade for or take your gold, silver and whatever else they want.  

Harbanger's picture

The manipulation of the paper markets is coming to an end folks! This is your last opportunity to buy physical assets. If you don't, you will regret it for the rest of your life.

AllWorkedUp's picture

Agree with you about physical, but what makes you think the manipulation will end anytime soon? Seems to me they are getting better and more blatant at it. They used to fight it every $10, now they are able to fight it every $2 up. The algo's seem to have this thing wired.

 Probably the most frustrating market to watch of any in history.

DCFusor's picture

The "eye of the financial hurricane" phrase was coined by Todd Harrison years ago, FWIW.

ebworthen's picture

Todd's been a bit of a sell out since 2009.

TWSceptic's picture

It will just keep on growing.

We learned differently in Europe.

cranky-old-geezer's picture



Yes, but what KIND of bubble? 

Last decade it was housing.  Banks pouring cheap (printed) money into mortgages with lending standards stripped away by govt edict, give a mortgage to anyone, doesn't matter who they are.

It was a bank-led bubble.  Banks providing the cheap money, and it poured into the economy, Main Street.

Then in '07 Fed started raising interest rates, topping out around 6% by '08.  It was a key factor in the '08 housing bust.   Fed doing its "pump & dump" routine.  Pump the bubble up with low interest rates then raise 'em suddenly and watch the dump happen, exactly what we saw in '08.

This bubble we're in now isn't a bank-led bubble.  Banks aren't pouring money into Main Street now.  Private sector lending has nearly been choked off completely.

This bubble is a Fed-led bubble.  Fed pouring (printed) money into Wall Street, not Main Street.   Helping Wall Street not only recover, but go way beyond, making enormous profits, paying bigger bonuses than ever.

While Main Street just sorta collapses.  While the economy just sorta collapses.  Not that they care. 

This isn't a bubble in the classical sense.  It's not helping the economy. 

It's more like looting.  Looting the economy.  Draining wealth out of the economy, giving it to Wall Street.  That's not a bubble. It's looting. They're looting the economy now.

We've never seen a "bubble" like this.   Fed  never has done anything like this.  We've never seen TARP and LSAP and POMO and QE before.  We've never seen Fed buying hundreds of billions of dollars of worthless trash securities before, paying full price for 'em.

This isn't just another bubble.  It's the LAST bubble.  The end-game bubble.  Fed knows we're approaching currency collapse, and they're looting all the wealth out of the economy they can, giving it to their Wall Street banker masters of course, and some to the govt for playing long.

That's the important point.  This is the LAST bubble before the US dollar collapses.  The final looting of the economy before it all comes down.

FEDbuster's picture

What do they gain by crashing the system?  Do they end up with all the money and properties like the end of a good Monopoly game?  Right now they have money, power, every material desire, they are above the law, etc... What do they gain by riots, starvation, martial law, mayhem, etc...?  

Did George Carlin answer this question for us already?

Motorhead's picture

Doug Casey, bitchez!

hairball48's picture

Casey will have the last laugh.

Triple A's picture

i know what is not in a bubble, it is housing prices. "I am long anything US housing"-Kyle Bass

Calmyourself's picture

Approximate date of the Bass housing quote, please?

Calmyourself's picture

No Shit... Incomes cannot support the price of housing and their is massive shadow inventory still being processed..  Wow, wish I had watched that interview...

fonzannoon's picture

kyle is all in. all the shit he shorted, he now owns.

gjp's picture

Just another cog in the bubble, Kyle is, going on about the rest of the world's problems, all in on the American/Anglo financial pillage of the world

cranky-old-geezer's picture



Earth to KB:  Housing isn't coming back.  Forget it.


Calmyourself's picture

Thanks harbanger, my google fu is weak today, but whiskey is still strong..  Could be related I suppose..

Pairadimes's picture

Who the hell are banks going to start lending to again? There literally is no collateral left (well, there is, but its not coming out of my safe).

NotApplicable's picture

Which is funny, because no bank I know of would consider it collateral. I tried once with a jeweler who was always advertising loans against jewelry/coins, but would only beat rates given by pawn shops, which in his words, "are my only competition." This was even after only being willing to loan 60% of current market price (which I was okay with).

I laughed at him and told him he really must not want to earn risk free income for a reasonable fee if he was going to try and leverage my need to that extent, just because he could.

Dr. Richard Head's picture

How about collateralized car equity and associated default swaps and derivatives. Can't make this shit up - see if for yourself

gdogus erectus's picture

Maybe they don't plan on lending again. Maybe they are going to use all these massive excess reserves to buy up all these shadow inventory homes for pennies on the dollar when banking holidays cause another 50% drop in housing prices?

max2205's picture

Tear down this wall of worry.  Its fucking real!

Seasmoke's picture

Collapsing Upwards.......MEMORIZE IT !

h0oS's picture

Stock markets at 2008 levels, gold being repatriated, more countries than ever establishing bilateral non dollar transactions, western block starting new wars in Africa, governments printing money knowing they are going out of business. Honestly, how stupid do you have to be not to hedge against this mess.

The Sikh leaders of post independence India had a saying for summing up their turmoil, "The Hindus saw trouble on the horizon, the muslims the day before it arrived, the Sikhs saw the mayhem only once it had passed over them".

NotApplicable's picture

Just think of when all of those petrodollars repatriate. Benron will have to steal them all in order to stem off the inevitable hyper-inflation that will ensue once people see their purchasing power diminish in real time.

Then again, there may be no markets left by that time...

Tinky's picture

"Honestly, how stupid do you have to be not to hedge against this mess."

As stupid as the average American, apparently. Good quote, by the way.

dirtbagger's picture

Well damn - listened to the Mayans and lost everything shorting the 2012 collapse.  Nothing left to bet on the 2013 collapse

Sudden Debt's picture

it's just money.
and when it pops, we'll just start over.

spinone's picture

Exactly.  There have been several "dollars" in use in the US over the years.

And we are on the 3rd central bank.  Life goes on.

Carl Spackler's picture

Yes, we have the 3rd central bank.

But when that implodes, the better news will be that we have the 1st military...which is why the petro-dollars will repatriate instead of the commodities and resources being extracted for overseas consumption.

Those with more pistols will get more pesos.

Rusty Shorts's picture

but..but, I thought the Federal Reserve's 99 year charter expired last year???