You can’t print your way to prosperity, and not even to recovery. There are a lot of dark economic and financial clouds on the horizon. From Frank Giustra at internationalman.com:
Doug Casey’s Note: In the over 30 years I’ve known him, my respect—and liking—for Frank Giustra has only grown. Not just because he’s a world-class businessman, having built Yorkton Securities into a powerhouse, and then founding Lionsgate Entertainment. More relevant to this interview, he’s a first-rate judge of the markets—one of the best I’ve ever met at seeing turning points and understanding trends.
He’s one of the few financiers in the “Master of the Universe” class that understands gold and economics. Frank knows what he’s talking about. I suggest you read this closely.
International Man: The coronavirus was the pin that popped the Everything Bubble. What do you think the economic ripple effects will be?
Frank Giustra: I think it was a bubble that was begging to be pricked. The cause was never the issue. I don’t think anybody predicted the cause would be a pandemic.
Last summer in an interview, I provided a list of things that might prick the bubble. A pandemic wasn’t on the list, but here we are.
As I said, the bubble was begging to be pricked. It was a bubble unlike any bubble we’ve ever seen in history—and it was a global bubble. It was a debt-driven bubble, spread over many asset classes.
I think the economic hit from COVID is going to be long-lasting. All the fiscal and monetary policy response is not going to address what is actually changing out there, which is a lack of demand.