In the above-linked interview (h/t Kitco), Frank Giustra, founder of both Lion's Gate
Entertainment and Goldcorp (two multi-billion dollar corporations) discusses his prognosis for the American economy's coming decades. He
concludes that there will be inflation and dollar collapse.
These would lead to a collapse in American power. He compares the United States to 16th century
Spain. He is non-partisan. He attributes the coming American collapse to the political system. He suggests that it is a waste of time to try to change the political system because the
incentives are too large; the politicians have zero incentive to do anything
other than to inflate and cause the monetary system to collapse.
Although he does not mention Mitt Romney, the process he describes by which inflation transfers wealth to the
wealthy and destroys those who hold cash or CDs, or earn wages, is exemplified by Mitt Romney's career. Making money through inflation is largely what hedge funds do.
The best way out, according to Giustra, is to make money
off the coming currency collapse. This
can be done by buying farmland, gold, or junior mining stocks (junior mining stocks
are a leveraged way to invest in gold and other precious metals).
Giustra is saying that the system is too corrupt, and the public too misled, for
political activism to make a difference at this point.
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