Jim Rickards Interview
A very good interview. Topics discussed: G20 meeting and Annual Report, viewed through the lens of Austrian economics. G20 quote: "Macroeconomic support has its limits. The limits to fiscal stimulus has been reached in a number of countries. Immediate front loaded fiscal consolidation is required", being banker-speak for austerity and cutting budget defecits. "Keeping intrest rates near zero for too long with abundant liquidity leads to distortion and creates risk for financial and monetary stability". This is very much in line with an Austrian economic philosophy. Interest rates are simply the price of money and when money is kept artifically cheap by central bank policy, misallocation of resources (asset bubbles) becomes prevalent. Views on reigning in the debt crisis from the European perspective, and how a debt crisis cannot be solve by more debt, but only by saving. Recognition of debt satuation within the G20 (at least by Europe, the US is still in denial). The ineffectiveness of the Financial Regulation Bill. Exemptions to the Volcker Rule. Swaps on commodities into subsidiaries (exemption being gold and silver, interesting). Bigger market share of the banks that are 'too big to fail'. Regulatory capture. Inflation vs. Deflation. Answer is both (which is my position), market forces are deflationary, policy decisions are inflationary, but this is not price stability. Severe deflation and QE. Realizing that gold is money helps to put the behavior of both into perspective. Discussion of ways to and stability to the money supply. The possiblity of a Depression. Another possibility of a loss of confidence in the currency. Economic and Financial attacks. The instability of the US Dollar being a National Security issue.
Jim Rickards, Interview on King World News
Thursday, July 1, 2010
Jim Rickards is Senior Managing Director for Market Intelligence at Omnis, Inc. and has been a direct participant in many of the most significant financial events over the past 30 years including the 1981 release of hostages from Iran and was also the principal negotiator for the government sponsored bailout of LTCM. His clients include private investment funds, investment banks and government directorates in national security and defense. He is an advisor to the Committee on Foreign Investment in the United States and Support Group of the Director of National Intelligence and recently testified before Congress on the causes of the financial crisis. In this interview Jim discusses the G20 meeting in Toronto, the Bank For International Settlements (BIS), asset bubbles, a coming financial catastrophe, financial regulation, central bank manipulation of the gold market, inflation/deflation, how this is going to end, potential for chaos and much more.
Follow Jim Rickards on Twitter at twitter.com/JamesGRickards
Biography of James G. Rickards
James G. Rickards is a writer, lawyer and economist with over 30 years experience in global capital markets. He is Senior Managing Director at Omnis, Inc., a consulting firm in McLean, VA and is the leading practitioner at the intersection of global capital markets and national security. His advice to clients from 2002 to 2006 included early warning of impending financial collapse, the rise of sovereign wealth funds, the decline of the dollar and the sharp rise in gold prices years in advance of these events. He has held senior executive positions at Citibank, Long-Term Capital Management and Caxton Associates. In 1998, he was the principal negotiator of the rescue of LTCM sponsored by the Federal Reserve Bank of New York. His clients include private investment funds, investment banks and government directorates in national security and defense. He is the national security columnist for The Daily Caller, www.dailycaller.com, has been the interviewed in The Wall Street Journal, has appeared regularly on CNBC's Squawk Box, as well as Fox, CNN, C-SPAN and NPR and is an Op-Ed contributor to the New York Times and the Washington Post. Mr. Rickards is a visiting lecturer at the Kellogg School and the School of Advanced International Studies, has delivered papers on econophysics at the Applied Physics Laboratory and the Los Alamos National Laboratory and has written articles on cognitive diversity, network science and risk management. He is an advisor to the Committee on Foreign Investment in the United States (CFIUS) Support Group of the Director of National Intelligence and recently testified before Congress on the causes of the financial crisis. Mr. Rickards holds an LL.M. (Taxation) from the New York University School of Law; a J.D. from the University of Pennsylvania Law School; an M.A. in international economics from the School of Advanced International Studies, Washington DC, and a B.A. from The Johns Hopkins University. Follow Mr. Rickards at twitter.com/JamesGRickards.
LISTEN TO INTERVIEW HERE