Doug Casey Warns "We're Going To Have Financial Chaos... It's A Dangerous Situation"

Tyler Durden's picture

Submitted by Mac Slavo via,

Doug Casey is the founder of Casey Research and well known for his forecasting prowess, having accurately called the crash of 2008 and many other trends over the last four decades. In his latest interview with Future Money Trends Casey explains what a Donald Trump Presidency will mean for financial markets, economic stimulus, and geo-politics. As he’s noted previously, 2008 was just the first part of the storm and we are rapidly approaching the trailing edge of the hurricane. This time around it’s going to last much longer and be much worse than what we experienced before.

In short, as Casey succinctly explains:

The one thing I feel very confident of is we’re going to have financial chaos in years to come and that’s going to drive people into gold and to a lesser degree into silver.



There’s absolutely  no reason from  fundamental point of view for bonds and stocks to be as high as they are right now… We’re in for a huge political, financial, demographic and military upset… these people might start World War III or seem like they’re trying to with the Russians… It’s a very dangerous situation.

(Watch At Youtube)

With Donald Trump set to take office in late January 2017, Casey believes his infrastructure initiatives will be a boon for the commodities industry:

I really believe him. I think that they’re going to push for doing lots of infrastructure in the U.S. and that’s going to take a lot of metals, so that’s a favorable short-term influence for metals… I can be talked into buying a copper or zinc or cobalt stock, but I want to stick with gold… and also uranium… I really think that the future of power generation is going to be in solar related things…. but at the present moment, by far the cheapest, the cleanest and the safest form of mass power generation is still nuclear… that’s exactly the opposite of what everybody is told… but especially if we have a de-regulated environment in the future, nuclear is going to do well… There are about 150 new nuclear plants under construction around the world… most of them in China and India… I’m very bullish on uranium… it’s selling below the cost of production.

But despite President Trump’s best efforts, says Casey, he won’t be able to stop the bloodbath coming in the bond market, a preview of which has been available for all to view in China, where the government halted trading last week following a record bond market crash.

People forget that the last peak in interest was between 1980-1982 when T-Bills were yielding over 16%… since then interest rates have been in a 35 year bear market going to below zero, which i thought was metaphysically impossible… So, interest rates are going to go up… Low interest rates and negative interest rates are actually destructive of capital and civilization because it discourages people from savings.


It doesn’t matter what these stupid governments do… interest rates are headed up… and I think they’re headed way up for a long time at this point… so if you own bonds sell them… hit the bid. 

Ever the skeptic when it comes to information, disinformation and misinformation emanating from the mainstream media, Casey warns that the narratives being spun to divide Americans are dangerous to the stability of the nation and could lead to civil war:

It’s extremely serious.. The real fake news is what you hear on CNN, MSNBC, and even Fox… I don’t trust anything I hear… the mass media is basically the mouthpiece of the deep state… these people that have the money and have the power and basically treat the rest of the country as peons… they’re very dangerous… I actually think that the U.S. is on the ragged edge of a civil war… because the people that elected Trump are hated on a visceral level by the preachers that are around the Democratic Party and the Deep State, and that includes Republicans…

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Debugas's picture

financial chaos means debt holders are in panic mode about the debt obligations they hold have zero value as indebted population will never repay the debt


Most of the ordinary people do not hold any of this mess and could not care less, thank you

JohnGaltUk's picture

Except a truck load of pension funds, they will just lose their pensions that's all

KittyKittyBangBang's picture


dem crazy libtard losers are wantin obumma too throw out the electin result... ... ..nd hav the don arrestid

DownWithYogaPants's picture

Please do not link to that stupid site "acredited times" .......because we know when you do that you are associate with it....

.......cause no one else would link to that poorly done site.

old naughty's picture

So many “warns…”


PCR warns, Doug Casey warns, Brandon Smith warns, Goldman warns,

Geert Wilders warns, Krelmin warns,…



Signs of the time?

DjangoCat's picture

Downwithpants, tell me about it.  Butt ugly.

JRobby's picture

Civil War is what they fear.

ATM's picture

What they fear is not civil war but pitchforks and torches.

WakeUpPeeeeeople's picture

And guillotines and stretched necks

Mustafa Kemal's picture

Indeed, when the pension funds collaps watchout. You can see the beginnings in Texas and Illinois

actionjacksonbrownie's picture

If you have any money in any bank, you are an unsecured debt holder, whether you realise it or not. When the big boys stop makin' payments, then the little guy gets the shaft, so "most people" better wake up.

ATM's picture

Do you conduct commerce in dollars, euros, yuan, yen or any other fiat currency?

If the answer is yes, and most ordinary people will, then you and they have a problem. A very, very big problem as the basis of society is being destroyed. That destruction will wrteak havoc first on those that think it doesn't apply to them.

DjangoCat's picture

dump the debt. cancel it too.

buzzsaw99's picture

trump has zero friends in congress bitchez. he won't be able to do jack shit (which is the best thing we can hope for).

equity_momo's picture

Regarding Trumps infrasctructure plans , Buzzsaw is correct.

Theyre no different than the Chinese racking up debt to build ghost cities.  When Krugman talks about broken window fallacy or shovel-ready jobs for the sake of it , we all laugh. But because Trump says it , we agree?   I think Trump was the best option the US had but it doesnt mean he is beyond reproach.  Trump is a handbrake on Globalisation - that means LESS infrastructure is needed. There will be LESS airtraffic. LESS everything.   We are just at that stage of the Malthusian curve.

His Goldman picks and debt bonanza ideas are fucking terrible. End the fucknig Fed and drain the fucking swamp. And stop thinking debt is going to MAGA.

Nockian's picture

Trumponomics is just the new deal all over again. It didn't work out the first time and of course the debt levels were not as high as now, nor the interest rate so low,

However, it can be seen that pumping money into the asset owning classes has produced very little for the rest of the population, so, it could be argued that at least there will be some gain (infrastructure) from all the debt creation. That said, the money will of course leak out of the restraints of the stock market and into a general increase in wages-resulting in severe price inflation.

The reality is that there is no way out of the current financial mess, there are just various ways in which the collapse will occur. It can be faster, slower, delayed, immediate, or with a big fanfare and flames, or a more quiet crumpling.

DjangoCat's picture

Yeah, they build it, and it lasts for a while and the debt mountain gets higher.  Then, then... we run out of stuff.  There is no way out of the final solution.

Chris Dakota's picture
Chris Dakota (not verified) equity_momo Dec 22, 2016 7:26 AM

We need to make stuff again, nothing else will fix it.

Let it be known who is starting a CIVIL WAR, it is the left that lost all across the country not just to Trump. They lost because they are mentally ill, immature, brainwashed  and can not govern successfully. They didn't even see this loss coming because they were in their safe spaces, which is always going to skew your sense of whats coming.

The civil war won't last that long though, they will get their teeth kicked in just like they did in the election.

NoPension's picture

Wake me up when fundamentals matter again.

So here is the solution, as I see it......

Growth...and exponential growth needs to cease to be the underlying principle. We need to assume a position of sustainable existence. Close and manage the borders. Let in those who are " best" for the overall society. I tend to believe nature will do it anyhow...better to get ahead of the curve.

Zero-Hegemon's picture

I hope they do get their teeth kicked in, and soon. The laws of "Evolution of the Species" will finally take effect. Grow a brain, or die.

DeathMerchant's picture

So Affirmative Action will not apply if there is a civil war ??

Cloud9.5's picture

History shows that it is easy to underestimate civil wars.  When secession was a hot topic in 1860,  A. W. Venable at one of the conventions memorably quipped that if war broke out, he would be able wipe up every drop of blood that would be shed with a handkerchief.   There is a lot of rancor in this country and it comes from more than one faction.  There is the urban rural divide.  There is racial tension.  There is the left and right conflict.  And of course, there is the ongoing war between religions.


Unlike 1860, we have a very fragile infrastructure.  Less than a hundred determined men, with the correct information and the requisite skills, could plunge the country into darkness, a darkness from which most of us would not emerge. 

Oldwood's picture

Agreed. We are on a knife's edge. There are plenty of reasons to be divided but a hell of a lot better reasons to be together. This thing can come unwound in a minute. We are armed to the teeth for it and a significant number just begging for it. They are ignorant to the true cost. We have a massive population of absolutely dependent people with virtually no skills for survival beyond killing one another. I wish I knew the answer but fear everything has gone too far. Most are in denial that it will ever happen while fully acknowledging they have never seen it worse. We just can't let ourselves admit it.

Sadly there are powers aligned that will benefit greatly from this potential hell and are actively trying to make it happen. These are not stupid people. Their power does not come from force but from manipulation, coercion, bribery and only occasionally violence. As such we can never be certain that we are not their unwitting soldiers actually advancing their agenda in belief that it is our own.

This is why I continually warn against reactionary violence. I am not a "nonviolent" person, but see decades of indoctrination that simultaneously seems to embrace violence from the left while constantly warning of the dangers from right wing extremism....Implied violence that has seldom gone beyond our words. They are goading us into violence and using it to give cause to even greater tyrannies and loss of freedom. This is ramping us into an explosive environment of which I see no way out beyond Galt's Gulch. 

Any interaction, any effort to debate ideas is met with ever greater hostility. I believe that the only thing that will reunite us is common hardship, something we will ultimately impose on ourselves...Probably violently.

bluez's picture

{Quote} We need to make stuff again, nothing else will fix it. {End quote}

This is true. But it will take too long. And first we have to bring back genuine education.

It's very strange to say: "it is the left that lost all across the country." The terms "left" and "right" in this context never meant anything anyway. If you are thinking of the crowd, please understand that these people are not real social justice activists -- they are just stooges financed by Soros and the Democrats, and coddled by certain lame college professors.

And Hillary clinton certainly has no interest in promoting social justice -- she is nothing but a war-mongering neocon whore.

I am a real social justice advocate (and activist), and we are the real silent majority. If you are not a shill, you must have no clue of what I actually believe in. By the way, I voted for Trump because he doesn't want a nuclear war, and because Clinton is really a neocon, and does.

Please don't make crazy assumptions based on what the stupid CIA/Soros supported stooge "left wingers" are always shouting about.

iLLivaniLLi's picture

What do you mean by "Genuine Education"? I'm guessing since you're a leftist that entails some version of a centralized and state sponsored Prussian system? Isn't that how we got here in the first place? Sounds very social justice-y of you. Please enlighten me to what JUST form of social justice entails and which groups are most deserving of recompense.

bluez's picture

I am not some fake "leftist". I am against centralizing excessively. When I was a kid we had great public schools, and we knew more than most of today's college grads when we got out of high school. Social justice advocates believe in fairness, simple common sense, and that there should be some things money cannot buy -- not idealistic nonsense. Check out this:

John Taylor Gatto

iLLivaniLLi's picture

Liberalism seems to be the belief that all that should matter is money, that who the money is attached to should not. It was the Communist Progressives who subverted money to hyper-impose that credo and Liberals seemed to go right along with it. How is it you think "Fairness" coincides with the belief that there are "some things money shouldn't be able to buy." Just seems illogical to me. If people are not equal, only fools expect equal outcomes.

DjangoCat's picture

Education.  The Globe and Mail this morning, i forget which article, quoted an "education expert" speaking to a crowd, that we face catastrophe if we hire "masculine" teachers.  Something to the effect that we need sissies and gay men.  Gender is not the problem, but masculinity is.  This was a guy talking here. Boys and men are a problem if they exhibit masculine traits. 

What bullshit is this???

DeathMerchant's picture

Hank Williams Jr, "A Country Boy Can Survive" says it all about who would win that conflict.


"A Country Boy Can Survive"

The preacher man says it's the end of time
And the Mississippi River she's a goin' dry
The interest is up and the Stock Markets down
And you only get mugged if you go down town

I live back in the woods, you see
A woman and the kids, and the dogs, and me
I got a shotgun, a rifle, and a 4-wheel drive
And a country boy can survive
Country folks can survive

I can plow a field all day long
I can catch catfish from dusk 'til dawn
We make our own whiskey and our own smoke, too
Ain't too many things these ole boys can't do
We grow good ole tomatoes and homemade wine
And a country boy can survive
Country folks can survive

Because you can't starve us out
And you can't make us run
'Cause one-of-'em old boys raised on shotgun
And we say grace and we say Ma'am
And if you ain't into that we don't give a damn

We came from the West Virginia coal mines
And the Rocky Mountains and the and the western skies
And we can skin a buck; we can run a trotline
And a country boy can survive
Country folks can survive

I had a good friend in New York City
He never called me by my name, just hillbilly
My grandpa taught me how to live off the land
And his taught him to be a businessman
He used to send me pictures of the Broadway nights
And I'd send him some homemade wine

But he was killed by a man with a switchblade knife
For 43 dollars my friend lost his life
I'd love to spit some beech nut in that dude's eyes
And shoot him with my old 45
'Cause a country boy can survive
Country folks can survive

'Cause you can't starve us out and you can't make us run
'Cause one-of-'em old boys raised on shotgun
And we say grace and we say Ma'am
And if you ain't into that we don't give a damn

We're from North California and south Alabama
And little towns all around this land
And we can skin a buck; we can run a trotline
And a country boy can survive
Country folks can survive

Verniercaliper's picture

It's not about left or right anymore....left want government everywhere, right want to sell out America to the highest bidder. Both love globalization, both are elitists and both hate ordinary Americans. The solution has to come from the outside. Trump isn't the answer, but he's a message to right and left that the natives are restless....

overmedicatedundersexed's picture

so you have inside info on his economic plans do you?? sure sure you do.

idiot spewing MSM false info as if it was real..

Trump has always said he likes "suprise" as a tool..perhaps you don't have any clue how or what he is going to do..

cause cause nobody but Trump does and he has not laid it out yet..



robobbob's picture

theres a difference between fixing a window that you yourself broke or building empty tower blocks, and fixing the falling down highway bridge or dredging a silted up port. as a businessman, lets hope trump will knows the difference and that congress can keep their pork barrel to a minimum.

there are a lot of things to build or fix that will boost real productivity.

ebear's picture

Executive Order, bitchez.

Look it up.

Dugald's picture

You really are a very stupid person.....sadly, there are a lot of you!

DeathMerchant's picture

Deplorables, they are everywhere.

JRobby's picture

Trump has zero friends in congress just like the rest of us who they steal money from.

Civil War

DeathMerchant's picture

That's why there are midterms. If Trump is stymied by congressional fucks I would guess he will twitter their asses like he did his opponents and make them known to the people. They will either comply or lose at the polls. All he need do is start deportations and create some jobs and he continues his momentum.

back to basics's picture

" years to come....."

Anyone who makes a prediction in this manner is a scam artist not a forecaster.


Arnold's picture

Whenever I see a Casey prediction , my mind goes to Edgar, rather than Doug.

Yeah speled different.

Batman11's picture

The markets have been pumped up with a lot of imaginary wealth and we don't want it evaporating too quickly.

Wealth - real and imaginary.

Central Banks and the wealth effect.

Real wealth comes from the real economy where real products and services are traded. This involves hard work which is something the financial sector is not interested in.

The financial sector is interested in imaginary wealth – the wealth effect.

They look for some existing asset they can inflate the price of, like the national housing stock. They then pour money into this asset to create imaginary wealth, the bubble bursts and all the imaginary wealth disappears.

1929 – US (margin lending into US stocks)
1989 – Japan (real estate)
2008 – US (real estate bubble leveraged up with derivatives for global contagion)
2010 – Ireland (real estate)
2012 – Spain (real estate)
2015 – China (margin lending into Chinese stocks)

Central Banks have now got in on the act with QE and have gone for an “inflate all financial asset prices” strategy to generate a wealth effect (imaginary wealth). The bubble bursts and all the imaginary wealth disappears.

The wealth effect – it’s like real wealth but it’s only temporary.

The markets are high but there is a lot of imaginary wealth there after all that QE. Get ready for when the imaginary wealth starts to evaporate, its only temporary. Refer to the “fundamentals” to gauge the imaginary wealth in the markets; it’s what “fundamentals” are for.

Canadian, Australian, Swedish and Norwegian housing markets are full of imaginary wealth. Get ready for when the imaginary wealth starts to evaporate, its only temporary. Refer to the “fundamentals” to gauge the imaginary wealth in these housing markets; it’s what “fundamentals” are for.

Remember when we were panicking about the Chinese stock markets falling last year?

Have a look at the Shanghai Composite on any web-site with the scale set to max., you can see the ridiculous bubble of imaginary wealth as clear as day.

The Chinese stock markets were artificially inflated creating imaginary wealth in Chinese stocks, it was only temporary and it evaporated.

It’s what happens.

2008 was just the rapid evaporation of the imaginary wealth associated with the US housing market, there is a lot of it about.

1929 was just the rapid evaporation of the imaginary wealth associated with the US stock market.

It led to the Great Depression.

Does anyone know why we still go in for this imaginary wealth?

It’s bad news when it evaporates. 

Miss Informed's picture

I would question the "forecasting prowess" Of Doug Casey. Of course he called the crash of 2008. He's been calling for crash every year since 1970. He's not particularly good at anything except getting free publicity.

Buster Cherry's picture

I think of the money I'd still have in the bank if I'd never heard of him or Porter Stansbury .


Bwana's picture

I had to laugh. Porter Stansbury is the only person I have ever heard that has made a living by his articles where he only talks or writes about himself. I read and listened to him about five years ago. Every one of his "articles" was bait to sell something worthless which took 10 minutes of reading or 45 minutes of listening to his slow talking speech while his site displayed in print what he was saying. What he was saying was all about what he did in the past, how great he was and nothing that anyone could consider economic advice. Every word he said was about him in the past and he never said anything else. This left such a lasting impression that every time I see or attempt to read an article and it starts with the text printed as the author engages the listener in the slow speech I move on to something that may be real. In short from the Porter Stansbury method of delivery I know it is a scam. 

Batman11's picture

All members of the US billionaire class believe in trickledown.

They forgot they made it up in the first place. All the evidence says the system trickles up and Adam Smith was aware of the trickle up of capitalism in the 18th century. Well, it’s more of a steady stream than a  trickle.

Since we started believing in trickledown and cut taxes on the wealthy, look what’s happened:

2016– “Richest 62 people as wealthy as half of world's population”

We assumed there was trickledown when the system flows upwards, no wonder there are problems with global aggregate demand.

Strong progressive taxation compensates for the upward flow of the system and led to the lowest levels of inequality in the developed world in history. The system needs strong progressive taxation to recycle the surplus and maintain demand.

Trump, test trickledown to destruction.

Thinking about trickledown.

Do companies employ people to make its employees rich?

No they employ people to make a profit, the productive output of all employees is split to take a profit for the company, cover costs and pay wages.

The employee loses a slice of their productive output to the company for the company to take as profit. The employee takes out less than he puts in.

Someone with a trust fund receives an income from their trust fund without the fund going down. They take out more than they put in.

The system trickles up and assuming it trickledown to lower taxes on the wealthy has polarized personal wealth and is hitting global aggregate demand.

Where did the idea of trickledown come from?

US billionaires after a long liquid lunch.

Someone has got to test the trickledown idea to destruction and who better than a US billionaire?

Donald test the trickledown idea to destruction.

Adam Smith looked out on a world of small state, raw capitalism and observed:

“The Labour and time of the poor is in civilised countries sacrificed to the maintaining of the rich in ease and luxury. The Landlord is maintained in idleness and luxury by the labour of his tenants. The moneyed man is supported by his extractions from the industrious merchant and the needy who are obliged to support him in ease by a return for the use of his money. But every savage has the full fruits of his own labours; there are no landlords, no usurers and no tax gatherers.”

He sees the lazy people at the top living off "unearned" income from their land and capital.

He sees the upward flow of Capitalism:

1) Those with excess capital collect rent and interest.

2) Those with insufficient capital pay rent and interest.

Looking at 5,000 years of human civilisation the Classical Economists of the 18th Century believed the poor would never rise out of a bare subsistence existence. This was the way it always had been and always would be.

Every social system since the dawn of civilization has been set up to support a Leisure Class at the top who are maintained in luxury and leisure through the economically productive, hard work of the middle and lower classes.

The lower class does the manual work; the middle class does the administrative and managerial work and the upper class lives a life of luxury and leisure.

The UK Aristocracy were there during the transition from Feudalism to Capitalism and barely noticed the difference as their life of luxury and leisure continued as before.

As if those at the top were ever going put a system in place that trickled down, the very idea is absurd.

Those that start companies do it to make themselves wealthy not their employees.

The employees are just the mechanism that capitalism uses to create profit and this is extracted from a portion of the employees productive output. The employee gets paid a wage and the employer extracts the surplus after wages and overheads.

Trump, test trickle down to destruction.

Batman11's picture

If Capitalism trickles down I'll eat my hat.

Come on Donald, get on with the test.

If you lose you have to eat your wig.

JRobby's picture

Trickle Down was the biggest lie. It says "trust us". A slap in the face and kick in the balls. It's gone south ever since.