October 17th, 2016
Legendary investor Doug Casey has a keen eye for capital markets, wealth preservation strategy and the many manipulations being used by financial elites to strip the wealth of entire nations. One year before global financial markets collapsed he warned that an economic and geo-political storm was coming. Now, nearly a decade on, he says that things are about to get a whole lot worse:
Where are we right now?
In 2007 I used the analogy that we entered a gigantic financial hurricane and we went through the leading edge of it in 2007, 2008, 2009 and 2010. We’ve been in the eye of the storm since then… and it’s a huge hurricane with a big eye… they’ve papered it over with trillion of currency units… not just the U.S… China, Europe, Japan, all the little countries… they’ve all done the same thing, foolishly.
Now, as we speak, we’re moving into the trailing edge and it’s going to be much worse, much longer lasting, and much different than the unpleasantness that we experienced back in 2008… so hold on to your hat.
In his latest interview with SGT Report Casey discusses what you’ll never get in a 30-second mainstream soundbite, including the upcoming Presidential election, suppression of alternative news media, the coming crash, hyperinflation, and preservation strategies your financial adviser won’t give you until after the panic starts:
Casey warns that what we have seen in Venezuela with people queued up in mile-long lines for food could become a reality in the United States as well, highlighting the fact that most of the money printed by the Federal Reserve has yet to hit the retail market. But when it does, look out, because the monetary collapse that follows will appear almost out of nowhere and take everyone by surprise:
The problem with all this money creation is that most of it hasn’t come down to the retail level. Most of it has stayed in the financial and capital markets… So, real estate is overpriced everywhere… stocks all over the world are in a bubble… bonds are in a super bubble.
.. nobody knows for sure, but let’s say there are 10 trillion U.S. dollars outside of the United States… but foreigners don’t have to use those dollars like Americans do because we have to settle in U.S. dollars… at some point when the panic hits they’re going to unload those U.S. dollars… so there will be much more paper money that will come back into this country and inflation could explode upwards… and very quickly.
With the many asset bubbles blown by the Federal Reserve and their central bank counterparts around the world, finding low priced assets may be a difficult proposition. But there is still one asset class that’s been ignored by most retail investors:
We’re almost in an area that seems metaphysically impossible where there is nothing that’s cheap… there really are no bargains except for the precious metals… they’re the only bargains I can think of… and the mining stocks…
The best and safest and highest potential place for your money now is the precious metals and you should have them in your own physical possession.
Because remember, gold and silver are the only financial assets that are not simultaneously someone else’s liability… That’s critical when most of the world’s financial institution are insolvent.
We’re in for real trouble.
As one of the world’s foremost experts in precious metals and resources, Casey suggests that we will see massive upside movement in gold and silver, and by extension, even bigger moves in the mining companies that pull them out of the ground:
The bottom came in January of this year. It was like a compressed spring. Everybody hated these stocks and nobody even wanted to talk about them… the fact that they’ve come up considerably since January, I think they have a long way to go because the basic dynamics that underlie gold are much more powerful than they’ve been almost any time before… I think it’s going to triple or quadruple in real terms… if that happens these stocks can catch fire.
If we get a mania in gold, and I think we’re likely too, it’ll be driven by both fear, as the economy falls apart, and greed as it goes higher… and prudence as people want to conserve assets.
If you get a mania in gold you’re going to get a super-mania in these little mining stocks… When the public gets interested in them and starts moving money into them it’s going to be like the contents of Hoover Dam trying to get through a garden hose… This has happened numerous times since 1970… These small stocks, as a group, regularly move up 10-to-1 with individuals companies moving up 50 to 100 times… I think it’ll happen again this time. This is a very good time to be positioned in them.
Make no mistake. There will be panic. And it will be epic.
As stock and bond markets around the world buckle we will see unprecedented capital outflows, the speed of which will be unbelievable to most.
And as Doug Casey has previously stated, there will also be panic buying of safe haven assets that will drive precious metals, the perceived last bastion of financial protection, to new all-time highs.
The time to get ready is now, because when the rush for the exit begins most will be trampled and left for dead.
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