Doug Casey on how to hedge against political risk in the Greater Depression
Welcome to Capital Account. Tonight, Mitt Romney and Barack Obama meet for their final presidential debate, amid tightening polls. While the candidates face off on foreign policy, we talk to our guest, Doug Casey of Casey Research, about his own foreign policy strategy: The strategy of the ‘international man.’ Casey explains how more and more Americans are moving their money and property offshore, and how a small but growing number of them are renouncing their citizenship entirely. What are these people afraid of, and from who or what are they trying to hide?
Plus, Caterpillar – a bellwether of the industrial economy – cut its forecast for 2012 for the second time this year. The world's largest maker of construction and mining equipment warned that the global economy was slowing faster than it had expected. Meanwhile, Japanese exports fell the most since the aftermath of last year’s earthquake, Bloomberg reports. We talk to Doug Casey, Chairman for Casey Research, about who will be hit hardest by this slowdown.
And after AIG was bailed out by taxpayers in 2009, AIG CEO Edward Liddy admitted to congress that "mistakes were made at AIG on a scale few could have ever imagined possible." Now, CEO Robert Benmosche seems to think AIG's "stellar" record deserves a thank-you from his cronies at the Fed and the Treasury.
In a recent New York magazine article, Benmosche said “The fact, is we now have succeeded in getting the Fed all of their money, and we’re just close to getting the Treasury paid back, and do you know, neither of them have ever said, ‘Thank you?’ Somebody should shout, ‘By golly, those AIG people made a promise, and they are living up to a promise!’” Lauren and Demetri discuss how the backdoor bailout of Wall Street through AIG was one of the most egregious incidents of the financial crisis.