Thursday, October 31, 2013

Tuesday, October 29, 2013

China Wants Out of the Dollar

Nothing gets printed there that they are not in agreement with. It basically calls for a de-Americanization of the world. It is a signed op-ed go up — calling for de-Americanization and basically saying that the global dollar has been abused by the US. 

The intentions are clear, China wants out of the dollar, but they do not have the capability. This could be kind of a five- year project, which they are now pursuing in earnest. This is a shoving match between China and the US. behind the scenes at the IMF.

- Jim Rickards

Sunday, October 27, 2013

This Game Will Come to a End in the Next Couple Years

“When the international monetary system collapses and it comes time to rewrite the rules of the game and create a new system…[it's] going to be [all about] how much gold you have. So it’s not surprising that everyone is trying to get their hands on as much gold as possible.”

“It’s a very deep game but you can see it playing out and it will come to an end in the next couple years”

- Source, Bull Market Thinking:

Friday, October 25, 2013

Countries Want Physical Gold

The Fed’s money-printing approach to solving the problem has resulted in a financial ‘backhanding’ of emerging markets and currencies James explains, in that, “Emerging markets [keep] most of their reserves denominated in dollars…and the Fed is manipulating the dollar, manipulating interest rates, manipulating exchange rates…manipulating every market in the world…[So] the Fed is like a drunk driver running over pedestrians and then blaming the pedestrians for being in the way…Things could easily spin out of control because of the Fed’s lack of understanding of how the emerging markets are really reacting to and dependent upon the Fed manipulation.”

In response to the continued Fed mismanagement and growing world currency war, it’s becoming clear according to Jim, that, “[Countries] want physical custody of gold…[they're] positioning for the day when there’s a massive loss of confidence in paper money…You’re seeing it with massive acquisitions of gold by Russia and China taking place through channels that bypass the London Bullion Market Association…They’re buying mines in Western Australia. They’re having the ore refined right there in Australia at the Perth Mint, and then shipping the gold straight to Shanghai. They’re completely bypassing the London market where they minimize their market impact, which is a smart move. That’s what you would do if you were trying to buy gold and not run up the price. You would do everything in secret and that’s what’s going on.”

- Source, Bull Market Thinking:

Wednesday, October 23, 2013

It Really is a Loss in Confidence

It will play out in all markets. When I say collapse, it is a loss of confidence in paper money.

Take the Fed, for example. The Fed has printed almost $3 trillion since 2007. Now, that is without a liquidity crisis. I mean, we did have a liquidity crisis in 2008. And the first round – I would say QE1 was a legitimate central-bank response to liquidity crisis. But QE2 and QE3: we will look back over them and we will see them as enormous blunders in one of the greatest failed experiments in economic history.

But the problem is, the Fed printed trillions of dollars without a liquidity crisis. What is going to happen when we do have a liquidity crisis, which I expect in the next couple years, where there is a 2008 panic starting again? What are they going to do? Print $6 trillion? $9 trillion? There is a limit on what they can do. And so at some point, it is going to get handed over to the IMF, and they are going to have to print SDRs (special drawing rights). That is the IMF world money. Because none of the central banks have clean balance sheets at this point; they look like hedge funds.

And so it really is a loss of confidence. Confidence is the key word – a loss of confidence in paper money. And that confidence is going to have to be restored somehow. And there are really only two ways.

One is the SDR, which no one understands. So maybe they can re-liquify the world by printing SDRs and that will create massive inflation, but no one will really understand where it is coming from.

And the other way is gold, which would restore confidence. But to have a non-deflationary price of gold, you are looking at $7,000 an ounce – very possibly higher, maybe as high as $9-10,000 an ounce. I know that sounds extreme. But it is really just eighth-grade math, if you look at the money supplies and look at the physical amount of gold. People say you cannot have a gold standard because there is not enough gold. Well, that is not true. There is always enough gold; it is just a question of price. So the theoretical question is, what is a non-deflationary price for gold if you have to go back to a gold standard? And the answer is, it's north of $7,000 and up.

So that is the kind of thing that you might see. It is not what any central bank wants. It is not what the elites want. But it is the kind of thing you could get if you had to restore confidence. So that is what the future of the international monetary system will look like. But right now, the Fed is still behind the wheel, and they are still driving the bus over the cliff.

- Jim Rickards via Peak Prosperity:

Saturday, October 19, 2013

European Union Economic Crisis

Jim Rickards discusses the ongoing currency wars and European banking policy. Managing the debt crisis. Can we?

Thursday, October 17, 2013

Fed Knows Gold Has To Go Higher

Kitco News was in New York City for Platinum Week and caught up with best-selling author Jim Rickards to talk the fed, gold and the international monetary system. According to Rickards, the Fed knows gold has to go higher but taper talks continue to put downward pressure on the yellow metal. Rickards expects the Fed to continue "tapering into weakness" and says there may even be a recession next year. Tune in now to hear his take on the global economy and hear more about his latest book entitled "The Death of Money & the Coming Collapse of the international Monetary System" due for release in April.

- Source, Kitco News:

Tuesday, October 15, 2013

Jim Rickards - Bernanke and the Federal Reserve

Five years ago, Federal Reserve Chairman Ben Bernanke warned members of Congress that without an emergency bailout for Wall Street "we may not have an economy on Monday." Lehman Brothers collapsed, Fannie Mae and Freddie Mac were placed into conservatorship, and AIG was seized by the federal government. In providing nearly $1 trillion to Wall Street, President George W. Bush said that he "abandoned free market principles to save the free market system." Did we save the free market system or merely allow the Federal Reserve to forestall yet another economic catastrophe? Author and managing director of Tangent Capital James G. Rickards has claimed that the Federal Reserve is "playing with a nuclear reactor." As the Bernanke-era draws to a close, Rickards will discuss the Fed chairman's legacy, the inherent vulnerabilities facing the U.S. dollar, and the challenges ahead for the new occupant at the Eccles Building.

- James Rickards via

Sunday, October 13, 2013

We Could Do Without A Central Bank

James Rickards, author of the bestselling book, Currency Wars, explains why he thinks the United States could do without a Central Bank.

- Source,

Friday, October 11, 2013

Deflation Blowback is Coming

James Rickards, author of the best-selling book, Currency Wars, explains how the United States' manipulation of the dollar caused inflation in China and will eventually cycle back.

- Source,

Monday, October 7, 2013

I Would Expect that this Depression Will Continue Indefinitely

“[But] most of them don’t understand what’s going on in the economy. They’re using the wrong models. Everyone is using cyclical models…expecting some kind of robust recovery…they’ve been wrong every single time, [and] the reason is that we’re not in a cyclical recovery…We’re in a depression. We are in a depression for the first time since the 1930s…[So] if you’re curious and you want to know what a depression feels like, it feels like this because we’re in one.”

“The problem with a depression,” James continued, “is that it’s not a business cycle. It’s a different [economic] condition and so cyclical remedies such as monetary easing don’t work…You need a structural remedy and that means changes in tax laws, labor mobility, regulatory policy, fiscal policy etc…I don’t see any resolution of the structural issues on the table and therefore I would expect that this depression will continue indefinitely.”

- Source, Bull Market Thinking:

Saturday, October 5, 2013

The FEDs Are Inflating

“The Feds are inflating the [stock] bubble as they did in the late-90s, and as they did in the mid-2000s with money printing and monetary easing…[it's] just money printing. It’s another bubble that will end badly, but the thing with bubbles is they can go on a lot longer than you expect. I mean it could go on well into next year before correcting.”

- Source, Bull Market Thinking:

Thursday, October 3, 2013

We're Witnessing One of the Greatest Failed Experiments in Economic History

Jim Rickards, author of the best-seller Currency Wars, sees the world's central banks embroiled in a "race to debase" their currencies in order to restore -- at any cost -- growth to their weakened economies.

In the midst of the fight, the US Federal Reserve wields oversized power due to the dollar's unique position as the global reserve currency. As a result, actions by the Fed create huge percussive ripples across the battlefield, often influencing events in ways little understood by the players -- and especially by the Fed itself.

In Rickards' words, the policymakers at the Fed "think they are dialing a thermostat up and down, but they're actually playing with a nuclear reactor -- and they could melt the whole thing down".

- Source, Peak Prosperity:

Tuesday, October 1, 2013

U.S. Treasury's Extraordinary Measures

As Congress prepares itself for a big debate on raising the debt ceiling, there's one thing to keep in mind -- the US already hit its borrowing limit on May 19th of this year. The US Treasury is legally only allowed to rack up $16.7 trillion in debt, but it has finagled a way to legally spend an additional $260 billion, using what it calls "extraordinary measures."

- Source, Russia Today: