I couldn't agree more with Seymour's thoughts on the commodities when the world's economy turns around. This is what I have been saying since summer time, these projects take time and when more and more are getting moth-balled you will see huge shortages in the future. Along with that will be very big inflation rates which in turn could send the U.S. into another recession. The U.S. needs to get their act together and start paying down their debt or it will make this last recession look like a little bump. I think the values of commodities could go higher than what Seymour sees, my reasoning is the devaluation of the greenback, it will have to happen sooner or later. The fact that the dollar has stayed relatively strong remains a mystery to many, it should be in the crapper right now. Anyways, this is a great little read, enjoy!

Born in Montreal almost 69 years ago -- his birthday is on Tuesday -- Seymour Schulich has had a series of careers following graduation from McGill University with a degree in science and a post-graduate degree in business administration. He worked as a certified financial analyst with Beutel Goodman & Co. for many years and formed Franco Nevada, which was acquired a decade later by Newmont Mining Corp. Investors were well rewarded with 30% compound annual average returns. He then became a large investor in the oil sands and other commodities, wrote a best-selling book (almost 100,000 copies sold) and became one the country's largest benefactors with $250-million in donations to universities and hospitals. Now a resident of Toronto, he loves to walk in the city's ravines and parks and has just traded in his 15-year-old car -- largely because spare parts were becoming harder to find -- for an "overengineered" Cadillac. By his own admission, the recipient of the Order of Canada has been "truly blessed." Here is an edited interview with FP columnist Barry Critchley.

Q What stage are you now, both in life and work?

A I am still a consultant to Newmont. I work at home two days a week and in the office three days a week. I walk with a lot of guys. I am as busy as I want to be. I try to pick up a lot of wisdom and keep active. That's the key. I read a book a week. A terrific book, absolutely outstanding is [Malcolm] Gladwell's latest, Outliers: The Story Of Success.

Q Have you ever seen the economy in worse shape?

A This is the worst ever. The period 1973-74 was like this but in slow motion. The real damage has been done in the past [two months]. It's carnage out there. I am amazed at what's happened to the commodities, how quickly the prices have come down. But we are destroying some [energy] projects that take five to seven years to build so that when the demand does pick up there will be enormous shortages, and the price levels on the next cycle will make past levels pale by comparison. You'll get US$300 oil, US$50 nickel and US$10 copper. But I don't know if next time will be three-four-five years away.

Q What's the real reason for how we got here?

A We have gotten away from the things that the capital markets are all about. They should be about raising money to build infrastructure, real estate, oil fields, power plants and employ people. Instead of that we and the banks, particularly, have evolved into a giant casino society. There's two culprits: derivatives, or bets that have been made that can't be paid off, and hedge funds. You have $1.5-trillion running around creating havoc in the world. What they have done is harvest companies prematurely. But that problem will solve itself with redemptions. Their origins were greed and their demise will be greed.

Q What's different about this crisis compared with other bad cycles?

A The difference is the preponderance of derivatives and hedge funds. The banks have been Canadian icons for 20 years. I think the securitization leg and the derivative leg are broken. They are back to investment banking and loans. Their model is broken. Banks won't be great performers for the foreseeable future. The dummies aren't there to buy those products.

Q If you were running the country, what would you do?

A The outlook is pretty grim. I would amend the government accounting system [to treat capital spending differently from current spending]. I would get some mega-projects going [including] the Lower Churchill [hydro development]. But they take time. I have been trying to get a subway to York University [in Toronto] for five years. It will take seven years to build, so 12 years to build something that's all of five miles. In China they would have that sucker built in one year.

Q Do you have any regrets in your career?

A Maybe I should have taken up golf earlier. But I would have wasted a lot of time. But thanks to the computer, I have evolved into a connector. If I learned golf, I might have been a connector earlier. If I was younger, I think I would get into politics. I would be a Liberal. Right now the Liberals match more what I think and believe than the Conservatives do.

Q What is the most meaningful thing you have done in your professional life?

A Business is a means to an end. I have had lots of successful deals and Franco was the highest profile. But $250-million in benefactions is by far and away the most meaningful thing I have done in my professional life. I also have $50-million out there in matching pledges.

Q What's the next big thing?

A I still haven't given up on the income-trust sector. If the Liberals get in, it's in their plank. I would like to save the existing trusts, especially the energy trusts. I converted to the Liberals over the [Tories'] income-trust changes.