3 Min. Gold News – Jim Rickards – CNBC World – April 17, 2015

3 Minute Gold News

A Quick Read for Busy People

A 3 minute synopsis of an interview with Jim Rickards, Chief Global Strategist at West Shore Funds, and New York Times bestselling author of The Death of Money and Currency Wars, by Susan Li and Bernie Lo from CNBC World.

Topics:


IMF Meeting
China
AIIB
Russia
Iran
Germany

 Rickards - Brisbane

Jim Rickards

Interview link

 

IMF

The IMF spring meeting is this week. Central bankers, financial ministers and senior IMF officials and are all in one place.

They have an agenda and there are public events and private events, but the real action happens on the sidelines.

They’ll have a meeting for the BRICS and a G20 meeting, and even after hours they’ll have private dinners and private meetings — and that’s where the real decisions take place.

CHINA

One thing that’s going on is that the IMF is positioning to include the Chinese yuan in the basket of currencies backing the SDR (Special Drawing Rights), which is the world money the IMF can print.

This is a very big deal because right now the US has blocking power.

China is saying that if they’re being asked to put up all this money so the IMF can bail out Greece or the Ukraine, then they want something in return. They want more votes and they want the yuan in the SDR.

The US has the ability to block this, so the US is saying to China that they better be on their best behaviour and keep the dollar/yuan currency peg.

We are seeing China’s growth slowing down and normally China would weaken their currency to promote exports — but they’re not weakening the yuan.

This is going to play out over the rest of the year.

They’ll probably have a formal vote in September and make it effective January 1, 2016, but this is going to affect the yuan/dollar cross rate for the whole year.

AIIB

The AIIB (Asian Infrastructure Investment Bank) is part of this.

This is hard ball politics and a very deep game. At the end of the day China does not really want to go their own way — they want to be in the “club” with the rest of the G7.

China is the second largest economy in the world but they’re still technically an emerging market.

They want to be in the club with the rest of the G7, but more specifically they want to be in the even more exclusive club with members who make up the IMF world money — the SDR.

But the US has been standing in their way. So China says they’re going to set up a parallel system – the AIIB, the BRICS development bank and bi-lateral trade deals.

They’re saying that if they don’t let China into their club then China will make their own club.

Look for the yuan to be included in the basket of currencies making up the SDR effective January 1st. This is a way for China to be a world reserve currency without opening their capital account. They still like a closed capital account.

RUSSIA

Sanctions on Russia expire in June and the entire European Union has to agree on sanctions. Greece is a member of the EU and is playing their own game with the EU and the European Central Bank. The Greek prime minister has been meeting with Putin so Greece may stand in the way of further Russian sanctions.

IRAN

The other sanctions coming off soon are with Iran. US business people are chomping at the bit to get over to Iran to do deals, but when they get there they’ll find the Germans are already there.

GERMANY

German companies like Siemans and Volkswagen — they’re going to be the big winners when Iranian sanctions come off. They’re also going to be big winners when Russian sanctions come off.

The whole German/ Russian axis is getting stronger.

German large caps, and Russian ETFs and the ruble are all good places right now.

 

Jim Rickards can be found on Twitter and at James Rickards Project.

 

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This week I’m in a little town in the interior of British Columbia, Canada, along the historic Gold Rush Trail.

 

I have my guitar and my gold pan, and there are so many golden flecks shining in the sun… right in the creek where I’m staying.

 

 

 

 

 

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IMG_3526……………………………………….

AlbumCover.PreparingfortheFall

 

Preparing for the Fall is a boutique live solo album available on iTunes — including the singles Wag the Dog, Black Swan Dive, Miss American Pie and Gods of the Copybook Headings.

 

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Wag the Dog (Drums of War and Backroom Banker Passes)
words and music Elaine Diane Taylor
© 2014 Intelligentsia Media Inc. All rights reserved.
SOCAN/ASCAP
from the album Preparing for the Fall available on iTunes

 

Coins and Crowns
words and music Elaine Diane Taylor
© Intelligentsia Media Inc. All rights reserved.
SOCAN/ASCAP
from the album Coins and Crowns available on iTunes

Single featured in Episode 1 of Mike Maloney’s documentary series Hidden Secrets of Money.

 


The Gods of the Copybook Headings
words by Rudyard Kipling and music by Elaine Diane Taylor
©2014 Intelligentsia Media Inc.
SOCAN/ASCAP
from the album Preparing for the Fall available on iTunes

 

 

Another Week on Wall Street (Naked Short Selling and Fiat Currency)
words and music Elaine Diane Taylor
© 2013 Intelligentsia Media Inc. All rights reserved.
SOCAN/ASCAP
from the album Coins and Crowns available on iTunes

 

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Nothing on this site is personal investment advice. We’re each responsible to watch how the wind is blowing.

 

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