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Doug Casey - Inflation to Start Running 20% - 40% Per Year

With gold and silver taking off the to the upside, today King World News interviewed Doug Casey, Founder & Chairman of Casey Research. “I think these people are fools. What’s going on here is that the dollar is going to reach its intrinsic value in the next few years. This is really serious because the prudent people in this country, the people that produce more than they consume and save the difference, generally save in terms of dollars. With Bernanke creating trillions of the things (dollars) or having created trillions of them, and they’ll be creating trillions more, the value of the dollar is going to be destroyed.”

Casey continues:

“Inflation in the next few years is likely to start running ahead at 20% or 30% or even 40% per year or more and that’s going to devastate the prudent people in this country and perversely it’s going to reward the imprudent ones, the grasshoppers in our society that are deeply in debt because it will wipe their debt out. This is all quite perverse, very bad.

When asked if the imprudent will also pay because they will have a tough time sustaining themselves during that period of rapid inflation Casey responded, “Well they might because they may be unemployed. With inflation at high levels, the standard of living is going to go down rapidly.

There is going to be more unemployment. There are going to be more business failures and even if your debt is being wiped out by inflation there is no guarantee that you are going to be able to service it in the meantime. This is pretty much a lose, lose proposition. Nobody wins when an economy is destroyed and that’s what the US government is doing to what’s left of the US economy at this point.

In South America where this (hpyerinflation) has happened in the past to other countries, it’s very bad in the country when they destroy the currency, but the rich people, the smart people all have significant wealth outside of the country. The rest of the world looks at it and they bring capital in to take advantage of the bargains and they invest.

The problem is when the US government destroys the dollar in the next few years, very few Americans have diversified outside of the United States, so they are not going to be able to bring anything back in to rebuild. The US dollar is the savings vehicle for most people around the world, so it’s going to turn out that billions of people around the world are going to be wiped out when the dollar is destroyed, not just the Americans.”

Doug Casey covered the gold market, destruction of the US dollar and how this cycle will ultimately end. The KWN audio interview with Doug Casey is available now and you can listen to it by CLICKING HERE.

Eric King

KingWorldNews.com

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