• Tag Archives Jim Rickards
  • Exploding Chinese Debt Could Threaten World Financial System

    The US national debt stands at over $21 trillion and neither political party in Washington D. C. seems inclined to do anything about it. In fact, the GOP tax planwinding its way through the political process will add an estimated $1.5 trillion more to the debt over the next decade. And that doesn’t even account for the increases in spending that Congress will certainly approve over that timespan.
    Of course, all of this government debt has serious ramifications. Corporations are also piling on credit. Last month, Mint Capital strategist Bill Blain predicted that ‘the great crash of 2018 is going to start in the deeper, darker depths of the credit market.’
    Now consider this. China has an even bigger debt problem than the US, and analysts say it could threaten global financial security.
    Jim Rickards recently listed a Chinese debt crisis as one of the possible snowflakes that could set off the next financial avalanche. As if on cue, the mainstream has picked up this narrative. As Business Insider reports it:
    China’s ballooning levels of debt and dependency on credit to fuel growth continues to pose a major financial stability threat to the global economy, and could be the catalyst for the next crisis, according to the International Monetary Fund.’

    This post was published at Schiffgold on DECEMBER 8, 2017.


  • Which Snowflake Will Trigger the Financial Avalanche?

    Loose monetary policy has dumped billions of dollars of easy money into the world’s financial systems over the last eight years, pumping up a whole slew of bubbles. We are still on the upside of the business cycle, with stock markets hitting record levels it seems like on a daily basis. But if history serves as any kind of indicator, a crisis is on the horizon.
    What will precipitate it? That’s the proverbial $64,000 question.
    Jim Rickards has compared financial crises to an avalanche. Snow piles up becoming increasingly unstable. Eventually, it reaches the point when all it takes is one more snowflake to set off an avalanche.
    In a recent column, Rickards highlights three potential ‘snowflakes’ that could set off the next deluge.
    Credit Crisis in China
    Earlier this month, Mint Capital strategist Bill Blain predicted that ‘the great crash of 2018 is going to start in the deeper, darker depths of the credit market.’ Hearing this, most Americans will immediately think of debt piling up in the US. But Rickards says China is actually in an even bigger credit bubble. He uses an anecdotal story to illustrate this point.

    This post was published at Schiffgold on NOVEMBER 30, 2017.


  • Electronic Gold: The Deep State’s Corrupt Threat to Human Prosperity and Freedom

    Stewart Dougherty returns with unique insight into the powerful Deep State forces behind the relentless manipulation of gold and silver. He also presents a searing look at Jim Rickards’ deceptive role as the Deep State’s grifter.
    ‘There are crooks everywhere you look now. The situation is desperate.’ Final blog entry by Daphne Caruana Galizia, 53, renowned Maltese investigative reporter who specialized in exposing state corruption; posted on 16 October 2017, one day before she and her vehicle were blown to bits by a car bomb in Bidnija, Malta
    In 2011, gold pulled a ‘Bitcoin’ before anyone even knew what Bitcoin was: its price went vertical to $1,900 per ounce. Inflation-adjusted, the price was still far below its 1980 all-time high, and from all indications, it was going to keep heading north toward its free market print.
    In surging, gold blurted out the Deep State Central Planners’ strategy for dealing with the Great Financial Crisis: the hyperinflation of bond, equities and real estate prices via the hyperinflation of both official and totally clandestine, off-the-books money supply, in order to create the hyperinflation of tax revenues desperately required by the government to forestall its fiscal collapse. Gold’s exposure of the Deep State Central Planners’ secret strategy was absolutely unacceptable to them, and had to be stopped.

    This post was published at Investment Research Dynamics on November 7, 2017.


  • The Greatest Fear Today: The Lack Of Fear

    Authored by James Rickards via The Daily Reckoning,
    Market crashes often happen not when everyone is worried about them, but when no one is worried about them.
    Complacency and overconfidence are good leading indicators of an overvalued market set for a correction or worse. Prominent magazine covers are notorious for declaring a boundless bull market right at the top just before a crash or correction.
    October 19 saw the thirtieth anniversary of the greatest one-day percentage stock market crash in U. S. history – a 22% fall on October 19, 1987. In today’s Dow points, a 22% decline would equal a one-day drop of over 5,000 points!
    I remember October 19, 1987 well. I was chief credit officer of a major government bond dealer. We didn’t have the internet back then, but we did have trading screens with live quotes. I couldn’t believe what I was watching at first, but by 2:00 in the afternoon we were all glued to our screens.
    It was like being a passenger on a plane that was crashing, but you had no way out of the plane. Our firm was fine (bonds rallied as stocks crashed), but we were concerned about counterparties going bankrupt and not being able to pay us on our winning bets in bonds.
    What’s troubling is that a lot of commentators said that the kind of crash that took place in 1987 couldn’t happen today and that markets were much safer. It’s true that circuit breakers and market closures could temporarily halt a slide better than we did in 1987. But those devices buy time, they don’t solve the underlying fear and panic that causes market crashes.

    This post was published at Zero Hedge on Nov 3, 2017.


  • Gold vs. Bitcoin: Goldman Sachs Weighs In

    Authored by James Rickards via The Daily Reckoning,
    I write and speak a lot on gold. In contrast – and this surprises some people – bitcoin is my least favorite topic. I’m made my views known many times.
    Still, interviewers love to get into the ‘gold versus bitcoin’ debate. I continually get dragged into discussing bitcoin in interviews on TV, radio and the internet. So I discuss it whether I want to or not.
    ***
    From my perspective, you might as well discuss gold versus watermelons or bicycles versus bitcoin. In other words, it’s a phony debate. I agree that gold and bitcoin are both forms of money, but they go their own ways.
    There’s no natural relationship between the two (what traders call a ‘basis’).
    The gold/bitcoin basis trade does not exist. But people love to discuss it, and I guess Goldman Sachs is no different.

    This post was published at Zero Hedge on Nov 1, 2017.


  • It’s a Phony Debate: Jim Rickards Weighs in on Bitcoin Vs. Gold

    Financial guru Jim Rickards weighed in on the Bitcoin vs. gold debate and came down firmly on the side of the yellow metal. In fact, he’s said there really shouldn’t be a debate. Bitcoin and gold are two totally different things.
    Rickards responded to a recent note published by Goldman Sachs declaring that Bitcoin is not the new gold in a column published at the Daily Reckoning. He said he doesn’t really like talking about Bitcoin and doesn’t think there is any real comparison between the cryptocurrency and gold.
    From my perspective, you might as well discuss gold versus watermelons or bicycles versus bitcoin. In other words, it’s a phony debate. I agree that gold and bitcoin are both forms of money, but they go their own ways. There’s no natural relationship between the two (what traders call a ‘basis’). The gold/bitcoin basis trade does not exist. But people love to discuss it, and I guess Goldman Sachs is no different.’

    This post was published at Schiffgold on OCTOBER 31, 2017.


  • China Catalyst To Send Gold Over $10,000 Per Ounce?

    Jim Rickards is on record forecasting $10,000 gold.
    But is China about to provide the catalyst to send gold even higher? And by how much?
    Today, we fare forth in the spirit of speculation… follow facts down strange roads… and arrive at a destination stranger still…
    China – the world’s largest oil importer – struck lightning through international markets recently.
    According to the Nikkei Asian Review, China has plans to buy imported oil with yuan instead of dollars.
    Exporters could then exchange that yuan for gold on the Shanghai Gold Exchange.
    Not only would the plan bypass the dollar entirely… it would restore gold’s role in international commerce for the first time since 1971, when Nixon hammered the last nail through Bretton Woods.

    This post was published at Gold Core on September 30, 2017.


  • Jim Rickards Warns “QT1 Will Lead To QE4”

    There are only three members of the Board of Governors who matter: Janet Yellen, Stan Fischer and Lael Brainard. There is only one Regional Reserve Bank President who matters: Bill Dudley of New York. Yellen, Fischer, Brainard and Dudley are the ‘Big Four.’
    They are the only ones worth listening to. They call the shots. The don’t like dots. Everything else is noise.
    ***
    Here’s the model the Big Four actually use:
    1. Raise rates 0.25% every March, June, September and December until rates reach 3.0% in late 2019.
    2. Take a ‘pause’ on rate hikes if one of three pause factors apply: disorderly asset price declines, jobs growth below 75,000 per month, or persistent disinflation.
    3. Put balance sheet normalization on auto-pilot and let it run ‘on background.’ Don’t use it as a policy tool.

    This post was published at Zero Hedge on Sep 21, 2017.


  • Trump Can Mold Federal Reserve in His Image

    President Donald Trump will have the opportunity to mold the Federal Reserve in his own image. But what that will look like remains to be seen.
    As Jim Rickards points out, Trump will appoint a higher percentage of the Fed’s board of governors than any president since Woodrow Wilson chose the original board.
    Seven members make up the Federal Reserve’s board of governors. Of course, regional reserve bank presidents also have some influence. But you find the real decision making power on the board. As of last week, four of the seven Fed board seats are vacant.
    Consider the power this gives the president. Four seats makes up a voting majority.
    Trump will own the Fed. Meaning, whatever the president wants monetary policy to be, he’ll get. In other words, Donald Trump will be able to shape the Fed’s majority. But the tricky part is figuring out how he plans to shape it.’

    This post was published at Schiffgold on SEPTEMBER 13, 2017.


  • Rickards: “There Are Three Things Going On With Gold Right Now”

    Jim Rickards joined Kitco News and Daniela Cambone to discuss the latest news and analysis from gold markets, geopolitics and even bitcoin. The Wall Street veteran took on the bigger picture facing metals investors and what could be just around the corner in a bubbling market.
    ***
    Jim Rickards is the editor of Strategic Intelligence and is the New York Times best-selling author of The Road to Ruin. Rickards’ worked on Wall Street for decades and has advised the U. S intelligence community on international finance, trade and financial warfare.

    This post was published at Zero Hedge on Sep 1, 2017.


  • Gold Reset To $10,000/oz Coming ‘By January 1, 2018’ – Rickards

    – Trump could be planning a radical ‘reboot’ of the U. S. dollar
    – Currency reboot will see leading nations devalue their currencies against gold
    – New gold price would be nearly 8 times higher at $10,000/oz
    – Price based on mass exit of foreign governments and investors from the US Dollar
    – US total debt now over $80 Trillion – $20T national debt and $60T consumer debt
    – Monetary reboot or currency devaluation seen frequently – even modern history
    – Buy gold eagles, silver eagles including monster boxes and gold bars
    – Have a 10% allocation to gold, smaller allocation to silver
    Editor: Mark O’Byrne
    A new monetary standard which will see the dollar ‘reboot’ and gold be revalued to $10,000/oz according to best-selling author and Pentagon insider Jim Rickards.
    A monetary ‘reboot’ is not unprecedented Articles about an imminent return to the gold standard are not exactly infrequent in the gold world and it can be easy to become immune to them and dismiss them without considering the facts and case being made.

    This post was published at Gold Core on August 30, 2017.


  • Weird Things Are Happening With Gold

    Authored by James Rickards via Daily Reckoning blog,
    Last week featured two unusual stories on gold – one strange and the other truly weird. These stories explain why gold is not just money but is the most politicized form of money.
    They show that while politicians publicly disparage gold, they quietly pay close attention to it.
    The first strange gold story involves Germany…
    The Deutsche Bundesbank, the central bank of Germany, announced that it had completed the repatriation of gold to Frankfurt from foreign vaults.
    The German story is the completion of a process that began in 2013. That’s when the Deutsche Bundesbank first requested a return of some of the German gold from vaults in Paris, in London and at the Federal Reserve Bank of New York.

    This post was published at Zero Hedge on Aug 30, 2017.


  • Four Factors that Could Help Sustain a Gold Bull Run

    Gold has entered a bull market.
    This according to an article in CityA. M., a London business daily.
    The authors cite four factors that could help support a sustained gold bull run.
    Global Interest Rates Will Stay Low
    Despite talk of monetary tightening in the US, interest rates worldwide remain low, and in many cases negative. Worldwide, economic growth remains relatively sluggish. Inflation is not hitting the central bankers’ target. In fact, Jim Rickards recently argued that the Fed won’t even continue with its interest rate normalization.
    The Fed will not hike rates again this year. Once the market wakes up to the reality of a prolonged ‘pause’ by the Fed, they will conclude correctly that the Fed is once again attempting to ease by ‘forward guidance.’ This relative ease will keep the dollar on its downward trend and be a boost to the dollar price of gold. The Fed will not hike rates regardless of the strong jobs report. The reason is that strong job growth was ‘mission accomplished’ for the Fed over a year ago. Jobs are not the determining factor in Fed rate decisions today. The determining factor is disinflation.’

    This post was published at Schiffgold on AUGUST 25, 2017.


  • Jim Rickards: Nobody Talks About It, But Our Whole System Is Based on Gold

    Earlier this week, US Treasury Secretary Steven Mnuchin paid a rare official visit to Fort Knox to check out the nation’s gold stash. He made headlines when he quipped about the possibility of the gold not being there. Later, the secretary assured the world the US gold is safe and sound.
    But why exactly does the US hold more than 8,000 tons of gold?
    As we’ve explained, gold is money and there is economic power in owning gold. But nuts and bolts reasons also exist that help explain why the US holds so much gold, and most people aren’t aware of them. Jim Rickards did a good job of explaining it in a recent article on the Daily Reckoning. He argues that the whole American system is still based on gold.
    So who actually owns America’s gold?
    That question is a little more complicated than you might think.
    Physically, the US Treasury owns the gold. But the Federal Reserve also has a claim on it. And at the end of the day, the US military controls it.

    This post was published at Schiffgold on AUGUST 24, 2017.


  • Where Is The United States’ Gold?

    A concocted public relations scheme – an event which resembled the annual Punxsutawney ground-hog viewing tradition – in which the Treasury Secretary emerges from Ft Knox and proclaims, ‘the gold is safe’ does not provide any evidence whatsoever.
    On cue, Jim Rickards followed up with a half-baked apology for the unwillingness of the U. S. Government to force a bona fide audit of the public’s gold being ‘safekept’ in the Fed’s custody.
    Bill ‘Midas’ Murphy asked my opinion on Rickard’s white washing of the topic:
    This is why I don’t read Rickards. I don’t know his deal is anymore. He was a front for the Pentagon’s goal to circulate the idea of the SDR replacing the dollar as the reserve currency. This is because they know the dollar is toast but the dollar is still the larges percentage share of the SDR so it still gives the U. S. control over the world’s reserve currency if it were to be the SDR.
    Now Rickards has pimped himself out to Agora, which really devalued Agora in my opinion. And he’s ripping off the public with his gold letter subscription. Total scam. I’ve had subscribers to my Mining Stock Journal tell me his subscription service is a farce.

    This post was published at Investment Research Dynamics on August 24, 2017.


  • Cyberwar Risk – Was U.S. Navy Victim Of Hacking?

    – U. S. Navy collisions: More than a coincidence?
    – Latest U. S. Navy collision is fourth involving a Seventh Fleet warship this year
    – Have US Navy vessels become victims of hacking asks Rickards
    – Chief of Naval Operations, Adm. John Richardson, has not ruled out cyber intrusion
    – ‘Once is happenstance. Twice is coincidence. The third time it’s enemy action…’ – Ian Fleming
    – Cyber security cause for concern in autonomous vehicles, aeroplanes and now ships
    – Serves as reminder that a connected world can expose and create vulnerabilities
    – Cyber security a major threat to banking and financial industry
    – Investors should hold physical gold as insurance against hacking, cyber attacks
    ***
    The tragic U. S. Navy incident of the USS John McCain earlier in the week has raised several questions about the cause. Many are wondering if it was more than human error given this is not an isolated incident.

    This post was published at Gold Core on August 24, 2017.


  • Rickards Exposes The Elite’s Plan To Freeze The Financial System

    Today’s complacent markets are faced with a number of potentially destabilizing shocks.
    Any one of them could potentially lead to another financial crisis. And the next crisis could see draconian measures by governments that most people are not prepared for today.
    You’ll see what I mean in a moment.

    This post was published at Zero Hedge on Aug 17, 2017.