Inflation Like the 70’s but on Steroids-Chris Casey
By Greg Hunter’s USAWatchdog.com
Wealth manager Chris Casey says, “The bust is the eventual end and, quite frankly, it has to occur based on what the Federal Reserve has done over the last five or six years. I would envision it’s going to be like the seventies, but on steroids.” As far as timing goes, Casey goes on to say, “Whether it’s in the next 12 months or the next 3 years, I can’t really say for sure . . . We are big believers in you have to have physical gold. Things could get so bad that you really want to have it in your hands . . . held outside of the banking system.” As far as the Fed cutting back or “tapering” the money printing, Casey says, “U.S. debt is completely out of control, and it’s a huge incentive to continue to inflate the money supply. Also, the Fed is buying 90% of the Treasury market. So, if they taper or scale back what they’re doing, it would certainly send interest rates spiking.” Join Greg Hunter as he goes One-on-One with Chris Casey of WindRock Wealth Management.
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About the Author
Greg Hunter
Greg is the producer and creator of USAWatchdog.com. The site’s slogan is “analyzing the news to give you a clear picture of what’s really going on.” The site will keep an eye on the government, your financial interests and cut through the media spin. USAWatchdog.com is neither Democrat nor Republican, Liberal or Conservative. Before creating and producing the site, Greg spent nearly 9 years as a network and investigative correspondent. He worked for ABC News and Good Morning America for nearly 6 years. Most recently, Greg worked for CNN for shows such as Paula Zahn Now, American Morning and various CNN business shows.
Greg this was a fascinating interview. I’m not sure how Mr. Casey came up with the 70’s economic theory he presented you? I don’t recall 47 Million people on food stamps, and massive government programs in the 70’s. Not like now. In the regard of high interest rates, high gas prices, and inflation, I would probably agree. But the manufacturing base was much stronger then, than it is now. It is virtually non-existent now. And we didn’t have the massive debt that we have now. NAFDA and government regulation has totally destroyed the free enterprise base of this country. If you figure the numbers of people on welfare, disability, unemployment , government jobs, prisons, and all the other programs this government has created, it leaves a very small tax pool to draw out of. For all intensive purposes we have followed the European model of socialism. And we all know how that has worked out. With the arrival of the Affordable Care Act in October, which will ramp up even more spending by the Federal Government, even Ben Bernake can’t print enough money to keep up with all the money this Government is planning on spending. Great interview Greg. Thanks for sharing a different perspective with us.
Great observations
Greg, Another real winner! Keep these guys coming…feet on the ground and a good grasp of where we really are today as an economy and a nation. No grand predictions but a solid perspective and what to expect in the future. Thanks.
Awesome interview, Greg. The train wreck is coming and the passengers really don’t understand what’s happening and what the end result will be. Amongst my peers it’s not even discussed. Once again, history will repeat itself in the sense that the masses will end up on the losing side of all of this because they didn’t take the time to investigate this for themselves. What’s aggravating is that I have an in law who has a large sum of money invested in annuities and have been warning him for years about what is coming and he just doesn’t get it or doesn’t want to deal with the thought of the consequences. When he’s wiped out on the other end of this collapse it’s going to be a sad day. I’m afraid it’s going to be a common theme and that this is going to lead to the dissolution of our republic and replaced with a dictatorship in our country.
Greg, and Chris Casey. Thanks for the interview. Altho I am as prepared as I can be with my limited income. Well I may invest in some chickens. I would like to know what Chris Casey thinks about the G20 meeting scheduled in Aug ?
Seeing that the G7 will not be invited. Thanks agian.
g8 http://www.brookings.edu/blogs/up-front/posts/2009/09/30-g20-kaufmann
I agree
JC, I have to defer to the comedian Fred Allen who once said “A conference is a gathering of people who singly can do nothing, but together can decide that nothing can be done.”
Interesting report,Greg.As a kid growing up, I learned how to earn money, but never seen to find out how to hang on to it. Family sickness comes along an takes what left after the government takes it’s share. Never needed help from the government to makes ends meet. Somehow, someway we made it thru till payday. Just wanted to say thanks to all of the politicians, who spent all the taxes we have paid in since I was born in 1955. Gold my be the only rainy day fund left. Appreciate you trying to look out for us John & Jane Does. Take care. Southern Patriot
southernpatriot,
Thank you for your comment and support.
Greg
What I fail to understand about the people calling for mass inflation is that they never identify the mechinism by which the money that is going to cause inflation is going to get into the economy.
All the money which the Fed is supplying has been going to purchase toxic assets and some of that has been going into stocks and treasuries. In order for that money printing to be inflationary it must find it’s way into the mainstream economy. How is that going to happen?
Jim H,
A least $12 trillion in liquid U.S. dollar assets are held outside of the U.S. What happens when foreign holders of those “assets” start selling? I don’t know how it’s all really going to end up but it is going to be ugly.
Greg
It depends, if we are talking about the treasury holdings in places like China, then the actual transaction is little more than some computer key strokes. In todays world the ammout of actual cash in circulation is a small fraction of the money supply. The vast majority of monitary assets are in fact virtual, simply keystrokes on a computer. The great reconing of foreign debt is a stawman which is based on a misunderstanding of the actual monitay system.
Jim,
Whenever the Fed buys an asset with newly created money, regardless as to the nature of the asset, it has injected money into the system. There are two situations which I can think of where that axiom may not hold true. First, the U.S. economy is not a closed system. To the extent dollars circulate outside of the U.S., whether as “petrodollars” or as the de facto national currency of a foreign country, the diversion of such dollars from the U.S. economy effectively reduces the money supply. So the Fed buying a Treasury from a foreign economic actor may not be inflationary (temporarily) if those dollars do not make their way back to the U.S.
Second, if banks receiving the newly printed money sit on these deposits. This is why there is such a discrepancy between the BASE money supply and MZM, M-2, etc. – the banks appear to prefer the “risk-free” rate of 0.25% from the Fed relative to rates they can receive in lending. However, as interest rates rise, they can no longer afford to ignore lending, and other money supply metrics should rise to levels more comparable to that of BASE.
Chris
Mr. Casey appears to be one of the few managers with “skin in the game” to admit publicly that all of the answers will NOT be found in lower Manhattan or in D.C.
Thanks for the interview Greg. I may inquire with WindRock to salvage (or at least safeguard) my meager pension.
Patrick,
You simply must do something with at least part of your assets outside the system no matter who you get to help you. Thank you for your comment.
Greg
Already(way)ahead of 99% of my fellow Americans. (For whom I will still do my best)
The quandary remains with soon to be worthless greenbacks that would be cut in half if I don’t roll over into a “legal” home.
P.S. I’m sending a couple of fiats your way…Just promise to invest in your adult beverage of choice, to be enjoyed as the sun sets beyond those we love and respect.
Some people kinda suck.. But life is still good!
Thank you Patrick for the FRN’s and your support!
Greg
Nice interview.
I think we all know that this bull market is going to end at some point. I struggle with how to use this information.The last3-4 days the market has gone sideways which is a clear indication that its struggling to keep up this abnormal climb to the stars. But when do we the people loose faith and walk away? When will stimulus lose its effectivness? Bottomline: Bernenke wants to get out of the bond buying buisness but he doesnt want to be the reason the markets fall over. he is absolutly stuck between a rock and a hard place
This bull maket is just what it is, BULL!
Anyone doing the grocery shopping knows that the USD is losing its purchasing power. I do not need a government report to tell me that my dollar is not going as far as it did two years ago.
The lies and the deception along with the non stories of racism and homosexuality are all diversions. Look at what is going on all over the world – economic stress. In addition it is interesting that others had/have real estate bubbles as we did…. coincidence , I don’t think so.
This is all about destroying the old system in order to bring in the new. We will have a hand full of haves and many have nots. I would be very worried about population control at this point by war, illness, or other means.
I liked the interview, but am afraid many younger viewers will not understand what you/he are talking about, just because they have not lived through the 70’s. I was young, but I remember that my Mom lost her job, we were afraid to travel any great distance for vacations since the gas lines were so long and sometimes gas was non-existent, and we made did with the clothes we had. I remember too, that I didn’t like the 70’s!!!
Anne Elliott,
Thank you for adding your 70’s perspective. The 70’s were not that much fun, nothing like the TV show.
Greg
The banks didn’t make bad loans in the 70s. I think lying on loan applications was a no no then.
In the 70s wages were always blame for inflation. Maybe we were inflating to pay off a war back then. Maybe all the lying and laws base on lies causes inflation.
If you grafts out slimballs in government to inflation you would find slimballs is the cause of inflation over the years. Peace
Im wondering if paying off my 15 year mortgage at 3.25 % , at only 1 year in, constitutes “getting out of the system.” ???
If one considers dollars will inflate, and become worth less over time, then Id be paying off that mortgage with cheaper dollars if I keep it. Also if rates rise as folks expect, it’d be nice to have 3.25% money, when others are paying for 6% money with higher rates.
My mortgage however, is roughly only a third of my home’s estimated market value on Zillow, which is fairly close to its assessed value by the county assessor for the purposes of property taxes.
If I use the cash that’s sitting in the bank now, which according to Sinclair is “at risk” of a bailin over the next 2 to 3 years, this action of paying off the mortgage gets that money “out of the bankers dirty hands.” also then my home is no longer under the auspices of any bank, which could I suppose ” call my loan in” if they need the money , or if for some reason times get tough later and I can’t make those payments. Owning it free and clear, does remove that risk of being in the system via a mortgage.
So it’s sort of like two different ways I’m “getting out of the system” and then my cash outgo is lowered by around $1000 per month. Every couple of months, I can buy a gold coin with the former mortgage payment I had. At least until POG is over $2000.
Not sure if it’s a smart move or not. I can rationalize either choice a dozen different ways. Alternatively, should I put that cash into more gold and silver bullion, right now, and keep the mortgage and the corresponding risk ?
Mike R,
If you pay off your house you must make sure you get clear title at closing.
Greg
If 262.5 TroyOZ’s of the devils metal is needed for one cruise missile, how much is in a drone? What is the Military Industrial Complex for $500.00 Alex.
Greg,
If these were normal times everyone would naturally want to be be “ahead of the curve” and through an understanding of money make some hay out of a total bust (which is what this is). The only problem is these arent normal times. I have elvolved to a point where I think the safest place to be is away from population centers on a remote strip of arable land with guns, seeds and horses along with a “high capability of roughing it.”
You can buy gold or silver or anything, but the world has gotten so dangerous that it might be stolen before you have a chance to use it or redeem it. Consider that today just after the Trayvon Martin verdict, you have an angry black (or African American if you prefer) mob shut down a major highway in Houston (of all places). Then you have a government that if gold becomes a focal point will come after you to confiscate it along with the funds in your bank account (bail ins), and threaten us with endless surveillance, SWAT teams, FEMA, Homeland Security and harass us with the TSA and VIPR road blocks.
I think Ann Barnhardt nailed it when she warned that the fix is in and the government and finance oligarchs in Wall Street have finally pulled off a coup against us. Perhaps not recognized for what it is, but a coup nonetheless. These are very troubling times and it is doubtful that merely owning gold can save anyone until a true civil society is re-established within the confines of the rule of law. If laws can be conjured up based on convenience by those in power or ignored at will by the same, we have no chance to implement a wise hard money strategy even though it is prudent under normal circumstances, but again these ARE NOT NORMAL CIRCUMSTANCES ! (EMPHASIS ADDED)
I originall followed Ann until she went off the deep.end. early.posts she wrote had merit. Now i fear for her sanity
Some of what she.posts now is so looney that it is beyond the pale.
The Austrian Right vs The Keynesian Left.
Never a dull moment.
An interesting experiment.
Too bad that the consequences will be so harsh
Good morning Greg from the other Jim H
The stock market will stay strong until they get rid of Social Security and have most everyone forced into the bogus 401K’s at which time they will be able to loot without regulation or oversight. All I know for sure is the NWO organizer’s have made great headway in building unions such as the European, South American, African etc. and having huge Corporations swallowing smaller companies as never before. They want digits on chips so they will have them. There is no oversight so no way to tell what’s real. They hid all the toilet paper in Fannie Mae and AIG (taxpayer billfolds)and call it payback for the bailouts. For us to use any of the old rules to try to figure what happens next is futile. I have turned off all MSM except NPR because it’s funded by the Neo Liberals (Rockefeller, Carnegie and Bill & Melinda Gates Foundations) who still after being funded by these guy’s have the audacity to ask us for money. Sometimes I feel our best chance is for them to grow a conscience but I think the “creamation of care” took care of that. Thanks for all you do Greg.
I love your site. I come here daily. I love your style unlike other sites I visit where the owners have two faces. I see them on CNBC at times where they present this polished correct moral appearance but on their site they degenerate into foul language and degrading comments which border on the racist, the immoral and many other such inappropriate ways. That’s why I like your site Greg and from that I like you as a person though never having met you personally. Now to my point.
I agree with the thesis on hyper-inflation and such but with one caveat. I do see it coming but I believe that when hyper-inflation hits (via FED ineptness or the 12 trillion abroad coming back) the FED would raise rates to the point of defending the dollar even if it craters the economy into pieces. I think they’ll realize at that point that by not defending the dollar they’ll lose the economy and the dollar. So better to save one and lose the other. I don’t think they’ll risk losing both with the hopes of saving the economy.
Josecito,
Thank you for your kind words and feed back. You make good points. Thank you for making them here.
Greg
Greg I just saw the new un-employment record for July this morning. They were celebrating the fact that it was 324,000. new filings instead of 340,000. new filings. Am I missing something? Why is it good news when over a quarter of a million people lost their jobs? Is anybody working? I’m hearing from my contacts in St. Louis that gas is now $4.10 a gallon. I guess we’ll be celebrating that it isn’t $5.00.
George Orwell was right. Newspeak is alive and well in America.
Thank you Jerry,
Greg