Posted on 05/01/2022 2:40:22 PM PDT by blam
Five-time, best-selling financial author James G. Rickards says, “We could be in a recession right now,” but the title of his most recent book “The New Great Depression” says where we are definitely going soon.
Rickards says, “The current crisis is not like 2008 or even 1929. The New Depression that has emerged from the COVID pandemic is the worst economic crisis in U.S. history…”
“Most fired employees will remain redundant. Bankruptcies will be common, and banks will buckle under the weight of bad debts. Deflation, debt and demography will wreck any chance of recovery, and social disorder will follow closely on the heels of market chaos.”
Rickards says there are many negatives to the current economy, Covid, inflation, war, sanctions, supply destruction, and on top of all that, Rickards says the Fed will ultimately kill the economy with a policy mistake. Rickards explains,
“Probably in May they are going to have quantitative tightening, which means you actually reduce the money supply. So, this is triple tightening: Three interest rate hikes, no more taper . . . and doing quantitative tightening at a very rapid rate. What just happened? We had a down quarter. The economy was at recession levels in the first quarter, and the stock market is on the way down. So, here we go again. The Fed is tightening into weakness. It’s tightening into certainly a stock market bubble, and they are probably going to destroy the markets again.”
Inflation, according to Rickards, is very serious, and he explains, “It is the worst inflation in 40 years. You can’t argue about it, it’s there…”
“The inflation we are seeing now does not come from the demand side… It’s from the supply side. It’s because of the war in Ukraine. That’s a supply side disruption. It’s also from the ‘Zero Covid’ policy in China. They locked down two of the biggest cities in the world. . . . There are multiple reasons for supply chain disruptions…
By the time you pay for gas and groceries, if you can, there is not much left over…
That’s going to kill discretionary spending.”
Rickards says the signs that gold is going way up are global. Rickards contends, “The world could not destroy the dollar, but we could…”
“If you are putting sanctions on dollars and kicking people out of dollar accounts . . . why would I want dollars? The U.S. destroyed trust. . . .
If you want to get away from the dollar, there is not a currency or bond market you can go to, but there is gold…
Gold is money good, and it’s the only form of money the whole world can agree on.”
Rickards says the minimum gold price is $15,000 per ounce in the not-so-distant future. Rickards says depending on the backing and math, it could go up in value much higher. Rickards likes silver, too, and food for the common guy. Food prices are going to go much higher according to Rickards, and in some places in the world, he expects out right starvation.
There is much more in the 55-minute interview.
Join Greg Hunter of USAWatchdog.com as he goes One-on-One with five-time, best-selling author James G. Rickards for 4.30.22.
(Please click to the site to see the video)
It’s happening very slowly.
The US didn’t do it.
The Democratic Party DID it.
Sorry, this guy has been wrong for all the years I have read his articles.
At least silver is $100 per oz, oh wait it is not, and has been going down since like 1980
Because there was no inflation before the Russian troops rolled across the Ukrainian border on February 24th.
They are called ‘gold nuts’ for a reason.
Millions will suffer financially from the recklessness of Biden and his Democrats, but we will survive.
Gold is money good, and it’s the only form of money the whole world can agree on.”
An interesting observation from Armstrong economics.
“Sorry, this guy has been wrong for all the years I have read his articles.”
Yes indeed. This one should make you smile.
James Rickards: The US Dollar is a Shadow Gold Currency – The New Case for Gold
Wednesday April 06, 2016 10:18
Jim Rickards is a failed hedge fund manager turned newsletter writer. I’d like to see his cumulative performance numbers, averaged out by year, both at his fund and his newsletter.
The problem with his thesis is that he posits that the dollar’s reserve currency status is the reason for the size of US economy. In reality, the size of the US economy is the reason for dollar’s reserve currency status. In many ways, the strength of the dollar is a brake on the US’s economic performance.
A strong dollar is great for American consumers. The problem is that it’s also a drag on the performance of American exporters. Everything they sell abroad is more expensive than it could be, to their foreign customers. US exporters are happy to see the dollar’s value fall relative to foreign currencies.
The reason the dollar stays stubbornly strong? Names like Microsoft, Amazon, Google, Boeing, Pfizer, Caterpillar, GE, Bank of America, and so on. Large US corporations at the top of their game that are among the best at what they do globally, peddle their goods and services abroad and receive large sums of foreign currency profits that they repatriate to the US by selling that currency and buying US dollars.
When foreign company products and services replace the American names listed above, that will be the time the US economy starts to stumble. Until then, the caterwauling about reserve currency status is just a carnival barker’s way of peddling his wares to a bunch of people he considers rubes. What I’d like to see is where Rickards’s money is actually invested - the wares he plays up or a mix of index and bond funds. Truth in advertising almost requires it.
“does not come from the demand side…”
Baloney. There was huge pent up demand after the lockdowns were ending that caused price spikes due to big demand and supply still not fully ramped up.
Just to be clear I am not Anti Silver or Gold.
hopefully y’all have some.
Everyone should have at least their body weight in exchangeable Metals, even if it is mostly brass and lead.
“Until then, the caterwauling about reserve currency status is just a carnival barker’s way of peddling his wares to a bunch of people he considers rubes. “
That is funny and perfectly nails the reality of these death if the dollar hucksters.
““The US Destroyed Trust” Jim Rickards Says “The World Is Turning To Gold””
i know i have ... i take my little sack of gold dust and a digital grain scale with me everywhere i go shopping ... sometimes the stores won’t take my gold so i turn to the more acceptable bitcoin, dogecoin, or ethereum ... cash is so yesterday ...
[That is funny and perfectly nails the reality of these death if the dollar hucksters.]
The gold coin/bullion sellers always hype the death of the dollar to push product. Plus the obscene bid/ask spreads can be explained away by “Hey who cares if you are instantly down 20% on those gold coins, any moment the dollar crash is going to start and then you’ll make a small fortune on your gold so don’t worry about the spread...”
“Slowly at first, then all at once.”
Massively printing money for CARES Act largesse and similar had nothing to do with it either.
>>At least silver is $100 per oz, oh wait it is not, and has been going down since like 1980<<
Peaked in 1980’s around $130oz, then crashed in early 90’s to around $7.00oz. Been trading sideways pretty much since then.
Regardless of whether the guy is spot on or wrong as hell. h
He could be a snake oil salesman for all I know. The real picture is here: https://usdebtclock.org/
Take a gander at the U.S.Debt clock. Stare at it for a while.
This sort of debt cannot go on forever. Flooding the country with the world’s poorest of the poor.
$90 Trillion total U.S. debt when factoring everything in. $169 T T T Trillion unfunded liabilities. It’s gonna break, just a matter of when. I’ll be happy as a lark to own some precious metals.
Been reading this for 20 years. Although I like the metals, one must be ready to see their investment in them underwater or flat for a lot of years. While your money is in the metals, your money is pretty much dead.
Answer me this: In the midst of the financial crisis 2008/9, gold first hit $1800. Nobody could have imagined the massive moves Bernanke pulled to “save the US/world economy”, but the point is, that fully unrestrained money creation saved the day.
From that point until today, money creation has run virtually unabated; yet gold is only up about 5% and 2-3 months ago was only up to the mid 1800’s. Now we are raising interest rates and the USD has been pretty strong; which is bad for gold. But if the raw creation of money allegedly impacts the price of gold (POG) then gold should already be at $5K.
Again, I have read Rickards and Dave Morgan and Mike Maloney and Ted Butler and a dozen more for 20 years. Their arguments make perfect sense. But reality appears to have just as strong ar argument.
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