Today, as promised, we're sharing part two of this Conversations With Casey. Read on below to hear Doug's thoughts on the true consequences of this pandemic… and what he considers the only solution that could restore some normalcy.
Daily Dispatch: Doug, what will be the true economic outcome from the pandemic? And what especially does it mean for the people within the economy?
Doug Casey: Well look, first of all, there's less real wealth being created across the board because nobody is working. And a lot of real wealth is actually being destroyed, with farmers breaking eggs, slaughtering livestock, and plowing under vegetables. Mines and factories are shut down. It's supposed to be a consumer service economy, but services have been hit even worse.
Real wealth is not being created and lots of wealth is being actively destroyed.
That's going to reduce the amount of real wealth in the world at the same time as the amount of purchasing media (money in circulation) goes up. So this is going to be inflationary in the longer run. But it could turn into a deflation, if there are too many bankruptcies, bond defaults, a stock market collapse, and the like. But the State fears a deflation and will fight it at all costs by printing money.