Rickards attended the Forex World Istanbul—and delivered a presentation on currency wars at the event last Friday. I found the opportunity to ask him a couple of questions following his book signing event. I am sharing this short interview and Rickards’ exclusive comments here.
EÖ – My first question is, what do you think about ‘Abenomics’ this historical money printing experiment taking place in Japan?
JR – Japan has been in depression since 1990 so it's a 25 year depression. Depressions cannot be solved with liquidity or monetary solutions. Depressions can be solved with structural solutions. You have structural problems so you need structural solutions. Through all this time Japan tried monetary solutions. They tried money printing, they tried lower interest rates, they tried stimulus but they could not make fundamental structural reforms for their economy. So that’s why they were not able to get out of the depression.
Abenomics will fail. It will fail unless they make structural solutions. But since they haven't, I expect their depression to continue and spread throughout the world.
This post was published at Financial Flood
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