Monday, January 23, 2017

James Rickards: An End to Globalism

Jim Rickards joined the BBC’s Gordon Brewer on Radio Scotland to discuss globalism and his latest best seller The Road to Ruin. During the conversation Rickards outlines exactly what he believes is a strategy by global elites’ to disguise a looming financial collapse.

When asked about the Donald Trump positioning he responded, “Donald Trump is not a conservative. He is a populist. He is a nationalist. He is a bit of a “Trumpist.” His policies are mercurial, subject to change. He ran as a “champion of working people.” That’s why he got those votes in Pennsylvania, Michigan and Wisconsin that broke up Hillary Clinton’s “blue wall.” So I could very well imagine Trump adopting pro-labor policies to help the working man.”

Jim Rickards is a lawyer and financial analyst who just released his New York Times best selling book, The Road to Ruin. Rickards has advised the U.S intelligence community and has also worked in the world of Wall Street for decades.

When asked about the big thesis of his latest book, The Road to Ruin, he is asked to explain what Ice 9 and the premise of his book relates to when examining the next financial crisis. “I look at three crises. I look at 1998, 2008 and 2018 – which is obviously hypothetical. But the point is it could be tomorrow. Each crisis is bigger than the one before it. Each response is bigger than the one before.”

“We are now at the point where central banks no longer have the ability to respond because they have not normalized their balance sheets or interest rates following the crisis of 2008. All of the money that was printed is still there, those near-zero interest rates are still there. The ability to print more money and lower rates is highly constrained.”

“The question is, where will the money come from? How will we reliquify the system in the next global liquidity crisis, which is – as I have said – just a matter of time? The answer is the International Monetary Fund (IMF). The IMF can print world money. They call it the Special Drawing Rights, or SDR, which is a rather technical name designed to throw people off. It is world money, printed by a world printing press and run by the IMF.”

“(But when the crisis happens) it will take three to six months to gather some consensus… so what will happen when the entire world wants their money back but there is no money? The answer is, they will lock down the system. Money market funds will suspend redemptions, ATMs will be reprogrammed to only allow a certain amount of money.”

- Source, Daily Reckoning