Friday, November 26, 2021

Jim Rickards: The Fed Does Not Have Our Backs!

James Rickards discusses the history of the Federal Reserve and delves into how they are only out to protect the "big fish". They could care less about the man on the street.

Will the Federal Reserve be able to save the system from total collapse in the coming, pending crisis? Tune in to find out if James Rickards believes they will be able to kick the can a little further.

Regardless, turbulent times lay ahead. Keep stacking.

Friday, November 19, 2021

Jim Rickards: All Currencies Are Going to Devalue Simultaneously Against Gold, Prices Are Destined to Move Higher

The IMF has a printing press as powerful as the Fed and ECB printing presses and can flood the world with their world money. Displacing the dollar would involve a meeting and agreement similar to the original Bretton Woods agreement of 1944. The agreement could take many forms. Still, the process would conform to what many call The Great Reset.

This process has been underway since 1969 when the SDR was created. Several issues of SDRs were distributed between 1970 and 1981, then none were issued until 2009 in the aftermath of the Global Financial Crisis of 2008. A new issue was distributed earlier this year.

Global elites see the COVID pandemic and climate alarm as a two-headed Trojan Horse that can be used to foist SDRs on a global population who have suddenly become accustomed to following government orders.

The recent COP26 meeting of elite climate alarmists and heads of state in Glasgow highlighted the use of central bankers and financial regulation to push the alarmist agenda by cutting off lending and underwriting services to energy companies that don’t promote renewables or that pursue oil and gas exploration (go here to learn all about a coming global climate tax, and also, how you can actually profit from it).

So, yes, the trend toward a single world currency is real also.

Still, things don’t happen that quickly in elite circles. Even Bretton Woods took over two years to design and another five years to implement even under the duress of World War II. The transition from sterling to the U.S. dollar as the leading reserve currency took thirty years from 1914 to 1944. As they say, it’s complicated.

At one level, there is no immediate change. A CBDC dollar is still a dollar. A CBDC euro is still a euro. Absent a new Bretton Woods type fixed-exchange rate regime, these currencies would still fluctuate against each other. Our analyses would continue as before. Still, there are three huge changes that could emerge from The Great Reset.

The first is that a new global currency regime would be an opportunity to devalue all major currencies in order to promote inflation and steal wealth from savers. All currencies cannot devalue against all other currencies at the same time; that’s a mathematical impossibility.

Yet, all currencies could devalue simultaneously against gold. This could easily drive gold prices to $5,000 per ounce or much higher to achieve the desired inflation. EUR/USD might remain around $1.16, but both EUR and USD would be worth far less when measured by weight of gold. This would be an accelerated version of what happened in stages between 1925 and 1933, between 1971 and 1980, and again between 1999 and 2011.

The second change would be that CBDCs make it much easier to impose negative interest rates, confiscations, and account freezes on some or all account holders. This can be used for simple policy purposes or as a tool of the total surveillance state. Surveillance of incorrect behavior as defined by the Communist Party is the real driver of the digital yuan more than any aspirations to a yuan reserve currency role.

The third change would be the widespread issuance of SDRs and their adoption as the sole global reserve currency. A new Bretton Woods could force countries to hold 100% of their reserves in SDRs, and major corporations could be forced to maintain their books in SDRs. This could lead to a fixed-exchange rate regime with a peg based not on gold but on SDRs.

All of these shifts are now underway. Whether they play out over years or mere months remains to be seen. Exact outcomes are uncertain. What is certain is that I will watch developments closely and keep you ahead of the power curve as the elites continue their push toward digital money, world money, and the end of cash.

- Source, James Rickards via the Daily Reckoning

Monday, November 15, 2021

James Rikcards: Towards a Single World Currency

Is the move toward central bank digital currencies real? And, if so, is it the first step toward a global reserve currency that will replace the dollar and euro as currencies of choice in reserve positions of major economies?

Well, yes and no.

Before I expand on that answer and explain the impact central bank digital currencies will have on the more familiar world of foreign exchange, it’s helpful to say a bit more about what central bank digital currencies (CBDCs) are.

CBDCs are not cryptocurrencies. The CBDCs are digital in form, are recorded on a ledger (maintained by a central bank or Finance Ministry), and the message traffic is encrypted. Still, the resemblance to cryptos ends there.

The CBDC ledgers do not use blockchain, and CBDCs definitely do not embrace the decentralized issuance model hailed by the crypto crowd. CBDCs will be highly centralized and tightly controlled by central banks.

CBDCs are not new currencies. They are the same currencies you already know (dollars, yuan, euros, yen, sterling) in a new form, using new payment channels. They are a technological advance, but they do not replace existing reserve currencies.

CBDCs are currently being introduced by major central banks around the world. Countries are at different stages of deployment. China is the furthest along. They have a working prototype of a digital yuan that will be showcased at the Beijing Winter Olympics in February 2022.

If you’re there and want to buy tickets, meals, souvenirs or pay for hotel rooms, you’ll be expected to pay with the new digital yuan using a mobile phone app or other digital payment channel.

The European Central Bank has also moved quickly on a CBDC version of the euro. They are not yet at the prototype stage, but they have made material advances and are getting close to that stage. Japan and the U.S. are at the back of the line.

The Fed has a research and development project underway with MIT to study how a digital dollar might intersect with or even replace the existing dollar payments system (which is already digitized, albeit without a centralized ledger).

The U.S. is probably several years away from its own CBDC at best.

So, yes, the move toward central bank digital currencies is real. How does this relate to what is sometimes called The Great Reset? This would be the movement toward a single global reserve currency.

This movement would be nominally led by the International Monetary Fund acting as a kind of world central bank. Still, the IMF cannot make decisions of this magnitude without U.S. approval. (The U.S. has just enough voting power in the IMF to veto any material decisions it does not like).

In turn, U.S. approval would require a global consensus among major economies including China, the UK, Germany, France, Italy, and other members of the G7 and G20.

This desire to create true world money would involve the creation of a digital special drawing right (SDR). SDRs are issued by the IMF to member nations and may be issued to other multilateral institutions such as the United Nations...

- Source, The Daily Reckoning, read the full article here

Friday, November 5, 2021

The Future Of Money with Jim Rickards, Danielle DiMartino Booth, John Najarian & Russ Gray

Interested in protecting the purchasing power of your wealth from inflation, learning how the US dollar and other world currencies are likely to perform from here, the roles of gold silver & cryptocurrencies, or whether the Federal Reserve & other central banks are going to soon issue digital currencies (CBDCs)? 

Then watch this video. Recently, I had the pleasure of hosting a panel on The Future Of Money at the New Orleans Investment Conference. 

It had an absolute killer line-up: Jim Rickards, Danielle DiMartino Booth, Jon Najarian and Russell Gray. As expected, the level of financial expertise and sheer neural power that ensued was off-the-charts amazing. 

So I begged Brien Lundin and his team, the folks who produce the conference, to allow me to share a replay of the panel here with you on Wealthion. 

Both to benefit from it’s insights, as well as to see the extremely high caliber of idea-exchange that happens amongst the fantastic experts at this event. Maybe you’ll want to join me there next year.

- Source, Wealthion

Friday, October 29, 2021

Jim Rickards: Why Would You Own This...

Jim Rickards talks about the growing world debt levels, dwindling confidence levels in the system as a whole and spiraling out of control inflation levels.

Rickards breaks down how owning precious metals is one of the only safe plays that you can make moving forward. The ability to pivot once the system comes crashing down on the worlds head will be non existent. Those who act now, will be handsomely rewarded.

We live in a fiat world and it is only a matter of time before the masses see through the illusion that it is.

Tuesday, October 12, 2021

Jim Rickards: It's Not Over Yet, Something You Never Heard Before

James G. Rickards is an American lawyer, economist, investment banker, speaker, media commentator, and author on matters of finance and precious metals. He is the author of Currency Wars: The Making of the Next Global Crisis (2011) and six other books. He lives in New Hampshire, USA.

Saturday, October 2, 2021

Jim Rickards What Does Afghanistan Mean for Defence Stocks?

Within weeks of the botched withdrawal from Afghanistan, Australia has announced a new defence deal with the UK and US, and our intention to acquire nuclear submarines and Tomahawk missiles. 

And Australia isn’t alone. Japan’s Ground Self-Defense Force is doing its first nationwide war drills since the Cold War, and the European Commission is agitating for a defence force of its own so that it isn’t reliant on the US for protection. 

It seems Biden’s announcement that the US won’t be as active in dictating the world’s affairs has woken everyone up to the need to protect themselves. 

When it comes to untangling the messy withdrawal from Afghanistan, and the long-term implications, Jim Rickards is your man.

Friday, September 24, 2021

Jim Rickards on Connecting the Dots, The Economy and Our Future Moving Forward

Usually, Jim’s issues take a deep dive on a range of topics that affect markets and your portfolio, economic growth, central bank policy, inflation, deflation, currencies, gold, stocks, bonds, demographics, geopolitics, and a lot more. 

But this month he did something different… He took two steps back, looking at all of these topics from a broader perspective. 

Instead of picking one and diving in, he took the major factors that drive markets and synthesized them into a big picture. 

It’s like when you go to the theatre to watch a play… A structural narrative forms the background and scenery that’s being performed by actors in the foreground. 

Most people focus on the actors. But it’s important not to forget about the scenery. That’s where the villains hide.