The Casey Report’s David Galland: The End of QE2: Major Policy Shift Ahead
(Interviewed by Louis James, Editor,
David Galland, Casey Research partner and managing editor of
, sees a major shift in Federal Reserve policy ahead and has advice on how to investaccordingly. Time is short, so we’ve asked David to share his thoughts with us.
: David, in recent editorials you’ve warned of what could be an important shift in Fed policy – can you fill us in?
: Sure. The purpose of
The Casey Report
is to keep subscribers well positioned inpowerful, long-term trends – the kind of trend that will keep giving and giving. The trend inprecious metals – gold and silver – which we’ve been heavily recommending for ten years is agood example. The overarching goal of
The Casey Report
is first and foremost to identify thosecritical larger trends and then closely monitor them until they play out – which is another way of saying that we aren’t big about market timing or jumping in and out of trades. I mention this toset the context for the coming shift in Fed policy.
: And that context is?
: That the shift, and it is imminent, will not change the larger trend, but it has the potentialto be quite disruptive over the short term.
: In terms of the larger trends, the fundamentals that have caused so much pain andeconomic woe over the last ten years or so remain intact. If anything, they’ve gotten worse.We’ve gotten currency debasement, not just in the U.S., but especially in the U.S. dollar, whichis not just any currency, but the world’s reserve currency.We’ve got a truly mind-boggling expansion of the reach of government into all aspects of societyand the economy, with all that that implies in terms of regulation, taxation, controls over investments and finance, impact on personal liberty, and so forth. By recognizing this destructivetrend for what it is, investors can position themselves to avoid the worst, and to profit by bettingon things like the continuing debasement of the dollar.So that’s the big picture.There is growing evidence that in the next month or two, we will head into a very dangerousperiod. The Fed has been extremely supportive of the U.S. government’s insane spending,