From whom would you rather take investment advice: one of the thousands of bankers or wealth managers who did not see the financial crisis coming or one of the few economists who predicted it?
In his 2003 bestseller “The Dollar Crisis”, Richard Duncan forecast how the unbridled creation of liquidity was set to spark a financial crisis. Three years after the crisis unfolded, Duncan’s new book, “The Corruption of Capitalism”, paints an even bleaker future.
Duncan expects that, in the years ahead, governments will prop up economies with ever-bigger doses of fiscal and monetary stimulus, but that eventually the extreme imbalances in the world economy will be corrected by market forces.
This will probably involve a collapse of globalisation and a drastic reduction of the standard of living of almost everyone alive
So how can investors protect themselves from such a dire outlook? Duncan says that his books aim to give policy advice, not investment advice. In “The Corruption of Capitalism” he writes only one line, at the very end of the book, about how to prepare for lean years: