Wednesday, November 26, 2014

Jim Rickards China went viral and how steel costs as much as cabbage

Thursday, November 20, 2014

Why Lower Gas Prices Are NOT “Bullish Indicators”

I don’t think the data is bullish at all.Lower gas prices put more money in consumers’ pockets.

But there’s an alternative to spending… Which is saving or reducing debt – which is the same thing.

I don’t consider these bullish indicators. They tell me an economy is running out of steam.

An economy is nothing more than two things: How many people are working and how productive are they?

Labor force participation is going down – which means fewer people are working. And productivity is also going down. Real wages are stagnant. 50 million people are on food stamps. 7 million people have part-time jobs who wish they had full-time jobs.

These data points are not bullish indicators.

We’re in a global depression.

There’s a slow down in Japan, China, Europe and the U.S. — the whole world is in a global depression.

There’s enough fights to go around, but in a fight between the ECB (European Central Bank) and Germany, Germany wins.

The ECB is only doing $2.5 billion worth of asset buying, while the FED has been doing almost $1 trillion a year. So the ECB is going through the motions but they’re not doing anything like QE. They’re not buying soveirgn debt. They’re buying some asset-backed securities, but there aren’t even enough of those to have much of an impact.

The ECB’s Mario Draghi is the best Central Banker in the world. He understands that Central Banks are essentially impotent.

When you’re impotent you have to talk a good game — so Draghi says little and does less.

The U.S. FED is the opposite. They don’t understand how impotent they.

China is the biggest credit bubble in the world.

The U.S. has created a bubble in housing and stocks with easy money, but there’s no bigger bubble in the world than China. They have a greater capacity to keep it going because their investors have fewer alternatives.

Project Prophecy 2.0 with Jim Rickards

Friday, October 31, 2014

Jim Rickards: Obama’s Abandoning the Saudis for Iran and Dooming the Petrodollar

By Alex Daley, Chief Technology Investment Strategist

I sat down with Jim Rickards, author of many best-selling economics and investing books, including his latest, titled The Death of Money. In this exclusive interview, Jim shares his view on the changes in US foreign policy—the newly announced partnership with Iran to help fight ISIS and recent moves away from the petrodollar deal with Saudi Arabia—and what they mean for the dollar, gold, and investment markets in general.

This interview just scratches the surface of the topics Jim covered in his speech at the most  recent Casey Research Summit in San Antonio. You can grab a complete recording of that speech, and all 25 of the others, in the Summit Audio Collection, which is on sale with a juicy preorder discount for just a few more days.

Alex Daley
Chief Technology Investment Strategist
Casey Research

Tuesday, October 28, 2014

CIA Expert Warns Of A Disaster That Would Make The Great Depression Seem Harmless

The Misery Index combines the true inflation rate with the true unemployment rate.
Why don’t you hear about this in the mainstream news? It is because the Federal Reserve has repeatedly changed how the Misery Index is calculated.
Rickards believes that the way the Misery Index is being calculated is being used to hide the true state of the economy.
He said:
“Today you rarely hear the government talk about the Misery Index with the public. The reason is they may not want you to know the truth. And the truth is, the Misery Index has reached more dangerous levels than we saw prior to the Great Depression. This is a signal of a complex system that’s about to collapse.”
Rickards specifically pinpointed how he thought the crash will come about:
“I expect the first phase will appear as a nearly instantaneous 70% stock market crash. From the outside, nobody will see it coming. Once it becomes clear that it’s not a flash crash – it’s a systemic meltdown in the economy itself, that’s when the gravity of the situation will sink in. And there will be no digging out from it. $100 trillion is a conservative estimate for the damage. A lot can happen over 25-years as our country struggles to recover from this.”
There you have it. A CIA economic expert reveals how he thinks a 25 year depression is about to hit America. Jim Rickards can’t be dismissed as a crackpot. So what do you think will happen to the country’s economic situation over the next 25 years?

- Source, WJ

Saturday, October 25, 2014

The World is in a Depression and There is No Getting Out

We are in a depression. This is a global depression. It started in 2007 and it is going to continue indefinitely. Depressions are structural, monetary solutions are cyclical: you cannot solve a structural problem with a cyclical remedy - monetary policy will not work. What it could do eventually is cause inflation. So far people say: “Where is the inflation?...We printed trillions of dollars, there is no inflation”. That is because we would have had deflation, extreme deflation, but for the money printing. It did produce inflation to the extent that it offset the deflation… The world is in depression, we are not getting out of it.

- Source, Jim Rickards via RT

Wednesday, October 22, 2014

Chinese Growth is Set to Slowdown Further

I have been going for Chinese growth to get to 3 or 4%. I would say that China`s growth is already at 4%. I know they print 7.5%. But about half of the GDP they produce is wasted. So if I build a $5 billion train station in a small town that is $5 billion of GDP- this money is completely wasted because 10 people getting on the train are not going to pay for a $5 billion station. So you go around China with these ghost cities we have talked about before... So it is generating GDP, but it is completely wasted. If you adjusted the published GDP figures for the amount of waste, their actual growth is probably already roughly 4%. That is going to go lower.

- Source, Jim Rickards via RT

Monday, October 20, 2014

The Currency War Goes On

I think this is one long “currency war”. We are now getting into more of a battle, more of a confrontation. The US dollar is the only strong currency that cannot last: the US cannot have a strong currency, because we are desperate for inflation. We have done all thequantitative easing, we have raised the zero, we have issued further guidance, we have done a twist, and we have done three versions of QE. We have done everything possible. The only thing left is to try to cheapen the currency and in fact the dollar is getting stronger. The Fed might not have minded a stronger dollar. Six months ago it did look like the economy was getting stronger. We saw strong second quarter GDP. So it was a little bit of a good day. And Europe was desperate for the help: they were stepping into recession. Japan`s economy collapsed in the second quarter. So you could see the feds saying “okwe will have a stronger dollar and give Europe and Japan a break”. But that is over. Now the US is becoming a loser and we are the ones who need to take a break. The only way to get it is a cheaper dollar. I would look for that in the months ahead.

- Source, Jim Rickards via Russia Today