3 Minute Gold News
A Quick Read for Busy People
A 3 minute synopsis of the April 8, 2014 interview with Jim Rickards, author of The Death of Money: The Coming Collapse of the International Monetary System and portfolio manager at West Shore Funds, by Lauren Lyster from Yahoo! Finance – The Daily Ticker
The conflict between the U.S. and Russia will continue because the Ukraine conflict is continuing, but no one thinks we should use military force.
Neither NATO or the United States is going to intervene militarily at this stage.
We are engaging in a kind of financial warfare. The White House calls it economic sanctions but it’s just financial warfare by another name.
It will not go very far.
You’ll have a few token sanctions but it won’t go far because Russia has a great ability to retaliate.
This is exactly like the cold war – they had a lot of missiles and we had a lot of missiles.
Nobody ever fired them because there was always a second strike capability.
Like two scorpions in a bottle – one can sting but the victim can strike back.
So we’re not going to escalate it.
We’re not going to freeze Putin’s assets. The two largest banks in Russia could be kicked out of the U.S. dollar payment system, or try to get our allies to kick them out of SWIFT, the international payment system. We did that to Iran and it was very effective.
We’re not doing that.
Russia has said they will retaliate. In the extreme they could unleash their hackers and shut down the New York Stock Exchange – they’re capable of that.
Nobody wants to go there.
Russia could also dump their U.S. Treasuries. That would cause interest rates to go up, sink our stock market because we’re leveraged with margin, and hurt our housing market.
We could damage their economy as well, but who wins? We have the bigger economy so we would lose.
Putin is thinking three or four moves ahead and the White House isn’t.
Sanctions will be token and won’t be meaningful. Putin will do what he wants in the Ukraine and we’ll see what China and East Asia do.
Coins and Crowns
words and music Elaine Diane Taylor
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from the album Coins and Crowns