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A 3 minute synopsis of the interview with Jim Rickards, author of the New York Times bestselling book The Death of Money, by CNBC Asia.
Topics:
Iraq
Turkey
Oil and U.S. Dollar Collapse
Inflation
Jim Rickards
CNBC Asia
Interview with Jim Rickards
June 12, 2014
IRAQ
This is going to get a lot worse.
We’ve all heard about ISIS (Islamic State in Iraq and Syria) — they’re spearheading it.
They’re a radical Al-Qaeda type group.
They’re not alone.
There are, according to Jim’s best intelligence, large elements of Saddam Hussein’s former army — Sunni officers and men of that army who are joining ISIS.
So they have trained military who are joining them. It’s not just a bunch of guys in a pick up truck with grenade launchers — it’s a much more organized force.
That is going to spread.
The Kurds are breaking away and that’s Turkey’s worst nightmare because there are Kurdish population, not just in Iraq, but in Iran and Turkey, and they aspire to have a Kurdistan.
TURKEY
That brings Turkey into play.
As the south destablizes you can expect Iran to come in and secure their interests.
So we have a civil war but we also have a regional war involving Turkey, Iraq, Iran and ultimately Syria.
ISIS doesn’t recognize the Syrian- Iraqi border.
This isn’t just a mess — it’s a civil war and it’s going to turn into a regional war.
It’s going to get a lot worse.
OIL AND U.S. DOLLAR COLLAPSE
Jim says the price of oil is going up.
Oil is a constant store of value, so what you’re really seeing is the collapse of the dollar.
In other words, as oil goes from $100 per barrel to $200 per barrel hasn’t doubled — the U.S. dollar collapsed by half.
That’s what’s really going on.
People say President Obama is between a rock and a hard place, but it’s a rock and a hard place of his own making.
He pulled the U.S. presence out of Iraq, which essentially green lighted the chaos you see today.
The President stabbed Saudi Arabia in the back last December when he anointed Iran as the regional hegemonic power — the regional cop on the beat.
This is a stab in the back to Saudi Arabia, which since the 1970s has supported the U.S. dollar as the world reserve currency.
Saudi Arabia required that oil be priced in U.S. dollars in exchange for guarantees of the continuation of the House of Al Saud and the rule of the monarchy there.
Now that we’re reneging on our security guarantees they can renege on their dollar guarantees:
- start selling oil to China
- start pricing oil in other currencies
INFLATION
It’s pulling out a leg of the stool that’s holding up the dollar.
It’s extremely negative for the dollar and it translates to inflation in the United States.
The Fed wants a little inflation — they’re going to find out they get a lot more than a little.
This looks like the 70s.
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Wag the Dog (Drums of War and Blood on the Streets)
words and music Elaine Diane Taylor
© 2014 Intelligentsia Media, Inc. All rights reserved.
Available on a soon-to-be-released album
Another Naked Short Week on Wall Street
words and music Elaine Diane Taylor
© 2010 Intelligentsia Media, Inc. All rights reserved.
SOCAN/ASCAP
digital single available on iTunes
