Jim Rickards interviewed on The Investor’s Podcast
Interview starts around the 1:40 mark.
– Jim begins talking about fiat US dollar dominance as a tool of geopolitical power.
– How the Federal Reserve bailed out the European banking system in the 2008 financial crisis.
– How foreign central banks have since become more dependent to our empiric Federal Reserve note issuing private central bank.
– China and Russia are further along with a private blockchain and physical gold bullion settlement system on a net basis (un-hackable, virtually impossible to stop).
– Reflecting on US Treasury Secretary Steve Mnuchin’s PPT equity market intervention this past Christmas Eve 2018. How have we arrived to this point?
– How unprecedented central bank market interventions to date have reflated most popular asset market values yet annual average growth over this past 10-year timespan has been a depression in a historical sense. Fully 1% off of average GDP in the USA over the past decade. We’ve lost about $5 trillion in real growth thanks to these endless market interventions.
– How interest rates cuts in the next recession won’t be enough, some version of QE4 is also coming.
– The Federal Reserve is going to expand its balance sheet in the next recession (other highly respected macro investors are on record stating an $8 trillion USD balance sheet for the Federal Reserve is coming based on the western world demographic Retirement Crisis brewing).
– Decoding some of the ridiculous lexicon and word smithing code by Federal Reserve talking heads signaling market insiders in the know (e.g. patient, patience).
– The whole world economies are slowing down, the USA is the laggard. Fiat US dollar strength has been resultant, emerging market devaluations are another consequence (good for some foreign manufacturing sectors, but bad for foreigners importing more expensive items though).
– BIG PICTURE: the US is deeply concerned the whole world outside it goes into global synchronized recessions. There is no escaping that for us then, the trough is coming for trends are not looking good.
– In terms of never before seeing so much fiat currency expansion at near record peaks of financial asset values… ask yourself, “Would you rather have a 5 year expansion with 3.5% growth, followed by a 6 month recession with -1% growth, followed by another 5 year expansion with 3.5% growth again. Or would you rather a 10 year expansion with 2.25% growth without a recession.” The first scenario is mathematically better overall for prosperity for the common good.
– The 2008 Financial Crisis was so bad that they couldn’t let it play out. We’ve been paying for it ever since with depression-like growth levels.
– Business Cycle Recessions vs Financial Panics: understanding the key differences between the two separately historically and when combined (e.g. 2008).
– Jim’s got a new book dropping this coming summer 2019 called “Aftermath”.