When the currency system as we know it dies, some people will become very wealthy. In this report from the Casey Research/Sprott Inc. Summit "When the Money Dies," The Gold Report talks to Rick Rule, Louis James and Marin Katusa.
Author: Karen Roche and JT LongPosted: Saturday , 08 Oct 2011
PETALUMA, CA (THE GOLD REPORT) -
The Gold Report: Since we are at a conference called "When Money Dies," please explain who killed money and how, after all these years of governments around the world trying everything from quantitative easing to bank bailouts, we are still in the midst of the weakest global economy in this generation's history?
Rick Rule: The answer is in an old Pogo Cartoon that reads: "I have seen the enemy and he is us." Collectively in the West, we have lived beyond our means for a substantial amount of time. We rely on a government that we have paid to steal from our neighbors. Money is how we deal with transfers. Dealing with transfers dishonestly by making more of the medium that isn't backed by any value is the process by which money dies.
Louis James: The problem is that you are asking the guardian who has stolen the goods to recover them. Government has been in charge of money for hundreds of years. When it is debased, you have to ask: "Who was watching the hens in the hen house?" When you discover who the fox is, you don't want to put him back in charge.
TGR: We are looking at quantitative easing 3 (QE3) in the U.S. Europe is considering the same thing. Even China is doing its version. Will money actually die or will it all inflate together?
Marin Katusa: I am going to take the contrarian view. With all this quantitative easing, there is actually asset deflation occurring right now if you look at the valuations from an equity standpoint. Trillions will be printed, but look at the deflation in the assets. He who has cash will be king because he can afford to buy these discounted stocks. If you do your homework and be sharp, you will make a fortune in the next three years.
TGR: But money is an asset; cash is an asset. If you are holding your wealth in money wouldn't it all deflate? .........
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