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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."



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Fri, 01/18/2013 - 20:20 | 3167963 ebworthen
ebworthen's picture

Despite the clanging bells, flashing lights, clink of coins, and clamor of excitement among the folks in the casino I'm keeping my cash in my pocket; thank you very much.

Fri, 01/18/2013 - 20:06 | 3167924 billsbest
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The US Fed Has Stolen the German Bundesbank's Central Bank Gold Reserves

Fri, 01/18/2013 - 20:32 | 3167989 AgAu_man
AgAu_man's picture

We all accept that if I get close enough to an aggressive animal (chained up dog, big cat, alligator, or a mythical vampire), that I shall fall prey.  No one blames the 'aggressive animal', as it is merely being true to its nature, and I "should know better".

So, it's the German Bundesbank's own damn fault for storing their gold with -- of all people -- NY Bankers!  LMAO.  What a bunch of educated and gullible, malleable Dummkopfs!  They get no sympathy from me for their willful stupidity.

But you know the Germans -- especially the Bureaucratic kind -- they just LOVE their "Obrigkeitsbewust".  Which is cowtowing to all forms of official authority.  Even in today's Germany, and I know this from first-hand experience, the youth make fun of their parents' "Obrigkeitsbewust". 

Sat, 01/19/2013 - 13:55 | 3169030 TheMerryPrankster
TheMerryPrankster's picture

Its really difficult to argue with an occupying army. Th e USA still has lots of troops and bases in Germany and lots of nuclear weapons.

Sometimes you have to go along to get along.

The Germans are not stupid. I would not underestimate them as the British did. They can play strategy with the best.

Most of American GDP of the latter half of the 20th century was based on stolen German technology. The tape recorder and all the entertainment industries it allowed/created, such as rock music and the video recorder are all based off a few German Tape Recorders stolen from Berlin by a GI.


Fri, 01/18/2013 - 20:19 | 3167964 q99x2
q99x2's picture

William Gibson Bitchez

Fri, 01/18/2013 - 20:36 | 3168005 AgAu_man
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Warren Buffe(t):  "Given that more and more people will be buying this old relic called gold, and given that Tungsten has the same density, you should expect more and more tungsten-filled bullions and coins.  It's a good thing I bought big-time into the Tungsten market and its value-chain last year.  Check it out.  LOL."

Fri, 01/18/2013 - 20:46 | 3168016 AgAu_man
AgAu_man's picture

Doug, look, I luv you buddy and agree with you overall, but...

As for 2013 being USD/FDR D-Day, well, I'm not so sure.  Reason being, these  guys employ the smartest rocket scientists and Ponzi schemers that fiat can buy.  All sitting in their Think Tanks, DARPA and Advanced Physics Lab places, like the kind Jim Rickards describes in his book Currency Wars, and runnings their currency-war scenarios.  Jim, I'm sure they've souped up your game quite a bit since your days.

I suspect that they'll keep the dog & pony show going a little while longer.  Somehow.  Keep buying Phyz-PM on fiat-price-dips.

In the meantime, enjoy the 'Dip & (Precious) Chips', baby!

Fri, 01/18/2013 - 23:48 | 3168351 Northern Lights
Northern Lights's picture

You think the Ponzi schemers and rocket scientists considered that Germany and other countries would start asking for their gold back?

Sat, 01/19/2013 - 13:48 | 3169013 TheMerryPrankster
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Bernanke and company have solved the problems of the fiscal crisis and the depression.

Now they are working on the implementation, the major problem seems to be how to convince Japan to bomb Pearl Harbor again.

Fri, 01/18/2013 - 21:05 | 3168060 quietdude
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Casey has been predicting a hyperinflationary crash since 1990. Can we crash already? The garage is so full of wheat I have to park the car outside :-)

Fri, 01/18/2013 - 21:21 | 3168090 AgAu_man
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I suspect that many can relate, but may not want to admit it.  I have a saying:

"One string does not a violin make, and one violin does not an orchestra make".

PM's are great, but I would not and do not hold more than 20% of my assets in PM's, lest I miss opportunities in other investments.  Rentable real estate (no 3rd party risk, no paper printing), and stock in specific companies (i.e. my own, self-managed Mutual Fund), maybe corporate bonds in companies that I understand and managers that are FAR from Wall St influence and their 'Financial Planner' shills.

Fri, 01/18/2013 - 21:21 | 3168093 orangegeek
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Gold has been moving sideways for some time.


US Dollar was up today - sideways up for some time.


But the Euro - when Europe collapses, the US Dollar will head sharply upward - and that should change a lot.

Fri, 01/18/2013 - 21:28 | 3168110 akak
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But the Euro - when Europe collapses, the US Dollar will head sharply upward


Once again, you confuse and conflate the US dollar with the US Dollar INDEX --- the two things, while vaguely related, are NOT the same thing, not by a long shot!

Fri, 01/18/2013 - 22:08 | 3168189 goldenbuddha454
goldenbuddha454's picture

Is it possible that technology is so good now that the speed at which we know something now v.s. 1929/1987 is so fast that the computer dweebs in govts. around the world, who have so handily tweaked their computers to respond to the slightest miscalculation/drop in the market/currencies etc.. to adjust to these situations, that they have become so complacent in their beliefs that something can go wrong that when it all comes crashing down in terms of currencies collapsing worldwide they will be stunned that their safety mechanisms didn't trigger to stop it?  Something that will happen overnight?  I believe china is hoarding commodities/gold/silver to be able to peg their currency directly to it to which the U.S. Dollar and Yen and Euro will be incalculable in terms of their actual value when the YUAN becomes the new world currency pegged to the gold standard.

Fri, 01/18/2013 - 22:25 | 3168213 joego1
joego1's picture

Technology is like stacking BBs. When things get unplugged look around you because that is what you will have.

Sat, 01/19/2013 - 13:14 | 3168915 TheMerryPrankster
TheMerryPrankster's picture

a strong sunspot and we are all on our knees. How's that online banking gonna work without computers or electricity?

How do we pump water or gasoline without a functioning power grid?

Go long pop-tarts. The MRE's of the middle class.

Mon, 01/21/2013 - 01:52 | 3172095 MeelionDollerBogus
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I'm pretty sure everything will be triggered.

And that WILL be the problem.

Bottoms, up!

Fri, 01/18/2013 - 22:10 | 3168194 joego1
joego1's picture

I listen to this idea of storing gold abroad from these guys in places like Singapore and in the next sentence they say we are do for some hot wars as things unravel. This leads me to believe that travel may become to expensive or impossible. In addition, after the US clobbers some unnamed Asian  county why would anyone think they would be welcome in that region? 

Sat, 01/19/2013 - 00:09 | 3168375 hawk nation
hawk nation's picture

After traveling to find a fallout shelter country i came to the conclusion i am better off staying in the usa and living with like minded people when the SHTF

No small country will be safe with dictators free to pillage any country they can

Sat, 01/19/2013 - 13:11 | 3168907 TheMerryPrankster
TheMerryPrankster's picture

safest bet is to become a doorman at an underground bunker for the oligarchy. Try D.C. its got more miles of underground than the London Subway.

Sun, 01/20/2013 - 07:58 | 3170354 MeelionDollerBogus
MeelionDollerBogus's picture

the pillaging will start en masse in the USA because the people are so passive & have so much to lose.

They'll trade their children for food today. That's the key.


Fri, 01/18/2013 - 23:33 | 3168334 Fix It Again Timmy
Fix It Again Timmy's picture

The amount of debt keeps growing (+) while the amount of tax revenues keeps dwindling (-); (+) (-) they cancel each other out - Whatz da problem?

Fri, 01/18/2013 - 23:51 | 3168356 uncle reggie
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"The best way to destroy the capitalist system is to debauch the currency. By a continuing process of inflation, government can confiscate, secretly and unobserved, an important part of the wealth of their citizens." John Maynard Keynes

Sat, 01/19/2013 - 00:06 | 3168368 hawk nation
hawk nation's picture

At the end of the day the Rothchilds and their ilk will have to trust someone to do their heavy lifting and that will be their mistake. Good moral people will not allow them to prosper from their actions

Sat, 01/19/2013 - 07:47 | 3168589 Poor Grogman
Poor Grogman's picture

Look on the bright side.

If it wasn't for the "Greatest Bubble Ever" we wouldn't have ZH

A silver ( or gold) lining so to speak.

Sat, 01/19/2013 - 09:25 | 3168629 s2man
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After the bond bubble bursts, then the last bubble; the USD bubble

Sat, 01/19/2013 - 14:17 | 3169086 bobbydelgreco
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i am sorry zhers the man you love to hate john maynard keynes coined a term called the liquidity trap what does that mean? it means that "when the banks begin to loan" are the 6 stupidist words on the planet

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