dailyreckoning.com / By Doug Casey / March 13, 2013
The Gold Report: In the conversation titled On 2013, you say 2013 will be ugly, but merely a warm-up for 2014. Yet the economic trends appear to be positive: the end of quantitative easing by year-end, increased domestic oil and gas production resulting in inexpensive energy for decades to come, more manufacturing jobs, and less unemployment. Is this slow-growing economic recovery masking the effects of the deficit and unfunded liabilities, thus allowing politicians to kick the can further down the road? Why do you think 2013 and 2014 will be so bad?
Doug Casey: In 2007, we started into the leading edge of a financial hurricane. In 2010 through 2012, governments around the world printed trillions of new currency. At some point those dollars, which are currently sequestered, will start coming into circulation. That will result in huge price rises of everything.
You can’t solve problems just by printing pieces of paper. You become prosperous by producing more than you consume and by saving the difference. However, the US, Western Europe, and many other parts of the world consume more than they produce. They have been living on borrowed money and mortgaging our future with debt. That holds true for governments and for individuals.
