Obama Ending Alliance with Saudi Arabia and Killing the Petrodollar

At the San Antonio Casey Research Summit, Jim Rickards sat down with Alex Daley to talk about the pain ahead for the US Dollar, why we'll soon see SDRs...

Jim Rickards United States Recession Will Force Euro Shorts To Cover 2015

Jim Rickards: the Fed & Weak US economy, Dollar depreciation; Greece and Europe

Powerful investment wisdom from Jim Rickards The economy is on a knife’s edge

Erin sits down with Jim Rickards – author of “The Death of Money” and chief global strategist at West Shore Funds – to discuss the US and Europe. In October ...

Which Will Happen: QE4 or a Fed Funds Rate Hike?

Jim Rickards on faltering US economy, Karl Denninger on misallocation

A sharp sell-off in major eurozone bond markets deepened Thursday as rising oil prices and a stalemate in Greece’s funding talks raise questions about the sustainability of record low borrowing costs. The decline sent yields on Germany’s 10-year bond – the region’s benchmark sovereign securities – to the highest levels seen this year. German 10-year bond yields climbed seven basis points, to .59%. Erin weighs in. 

Then, Erin sits down with Jim Rickards – chief global strategist at West Shore Funds and author of “The Death of Money.” Jim tells us what the likelihood of the Federal Reserve raising rates or reverting back to the QE is and gives us his take on why the US economy is faltering.

James Rickards - The Death of Money

The Fed Will Start QE4 In 2015

Jim Rickards appears on Fox business, where he discusses deflation and the stagnant economy. Where is the US heading next?

Jim Rickards on Oil Prices Collapse & Russian Currency Crisis

European Central Bank QE and What It Means for Gold

Jim Rickards discusses the recent QE program unleashed by the European Central bank and the effects it is going to have on the global markets.

- Source, Russia Today

The Fed Is Trying to Import Inflation

The Market Collapse Investors Won’t Expect

The forces of inflation and deflation that we’ve talked about take a while to play out, but this market collapse could happen very suddenly and catch investors completely unaware.

Now, the thing is, we’ve come within hours or days of total global financial gridlock, total market collapse in the last 14 years. Everyone knows about 2008. People have a sense of that.

But it also happened in 1998 as a result of the Russia default and the collapse of hedge fund Long-Term Capital Management. At the time, I was involved with Long- Term Capital Management…I actually negotiated that bailout. I was in the room. I saw the $4 billion moved into our bank accounts to prop up the balance sheet. The money came from Wall Street. But there was a lot of give and take that almost didn’t happen and we were literally hours away from markets collapsing. We muddled through that. We kind of found the runways and got through.

But, people learned all the wrong lessons. Instead of banning derivatives and backing away from overleverage and putting a lid on banks, public policy did the opposite. We repealed Glass-Steagall, which allowed banks to act like hedge funds; we repealed Schwab’s regulation, which meant that you could do derivatives on anything. We repealed or increased broker dealer leverage from 15 to 1 to 30 to 1. The SCC did that in 2006 and the Boswell three capital requirements to allow greater bank leverage.

So, we said, game’s on. You can do whatever you want with as much leverage as you want and as much opaqueness as you want because of the use of derivatives. Is it any surprise that in 2008 we had another market collapse? Now, Bear Stearns goes down, Fannie goes down, Freddie goes down, Lehman goes down, AIG goes down – one by one the dominos were falling. We were days away.

Morgan Stanley would have been next, Goldman right behind it and then Citi then Bank of America and then J.P. Morgan — so all the dominos were falling. The government dropped a steel curtain between two of the dominos. They stopped it after Lehman and AIG so Morgan Stanley didn’t fall, but Morgan Stanley was days away from collapse.

- Source, Jim Rickards, via The Daily Reckoning