3 Minute Gold News
A Quick Read for Busy People
A synopsis of an interview with Jim Rickards, New York Times bestselling author of The Death of Money and Currency Wars, by Stuart Varney at Fox Business.
Jim is the Chief Global Strategist for West Shore Funds, former general counsel for Long Term Capital Management, and a consultant to the US Intelligence community and the US Department of Defense.
Topics:
China is a Ponzi
China’s Government Manipulating Stocks?
Tears
Jim Rickards
CHINA IS A PONZI
Ponzi schemes can last for a long time. Bernie Madoff ran a Ponzi and what took it down was the Lehman Brothers collapse and then everyone wanted their money back and Madoff didn’t have it.
China’s economy is the real story. China is more than 10% of global GDP. If you take China down 30% then that’s 3% of global growth. Global growth is only 3%.
So taking China down 30% takes global growth down to 0.
Madame Lagarde, IMF Managing Director, is warning Janet Yellen, Federal Reserve President to not raise interest rates. Lagarde is looking at the global picture.
Is Yellen listening to Lagarde? Does Yellen understand the global implications of raising rates? We’ll find out at the Fed FOMC meeting.
CHINA’S GOVERNMENT MANIPULATING STOCKS?
The US government pushed the US stock market up 100% with Fed intervention. They lowered the cost of interest which increases margin loans and makes financing more available.
The Chinese government bought Chinese stocks but Jim isn’t going to point fingers at the Chinese about manipulating markets. Nobody manipulates more markets than the Fed.
The US dollar is the global reserve currency — if you manipulate the dollar you manipulate the world.
TEARS
This is going to end in tears. China has a credit crisis on top of a slowing economy.
They’re fighting the currency wars and de-linked to the US dollar recently. They’ll lower the yuan even more, particularly if Yellen raises interest rates..
Something is going to crash somewhere.
There’s $60 trillion of new debt since 2008.
The world is more leveraged than it was then so it’s more dangerous.
Jim Rickards can be found on Twitter and at James Rickards Project.
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Not Much of a Holiday
words and music Elaine Diane Taylor
© 2015 Intelligentsia Media, Inc. All rights reserved.
SOCAN/ASCAP
Single available on iTunes
About the Greek bank holiday and long lines to get a few euros for the day. Debt deals behind closed doors. The media telling us what opinions to have. China building islands in the South China Sea and claiming all the waves. More dealing to come. More standing in line for those who owe. Who’s next? There’s a long line of nations in debt and this is far from done.
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Preparing for the Fall album is available on iTunes — featuring Wag the Dog, Black Swan Dive, American Pie and Gods of the Copybook Headings.
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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.
When a nation leaves a gold standard or sound money and borrows to go to war hunger goes up, hope goes down, anger goes up, then it all goes down.
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
The copybooks of the early 1900s gave us all the words of wisdom we need. All the empires who followed the gods of the marketplace instead of the copybooks have fallen, and there’s terror and slaughter when the gods of the copybook headings return. The words are Rudyard Kipling’s. One of my gurus.
Another Week on Wall Street
words and music Elaine Diane Taylor
© 2013 Intelligentsia Media Inc. All rights reserved.
SOCAN/ASCAP
from the album Coins and Crowns available on iTunes
See the bankers wave their Wall Street wands and conjure piles of paper green. They’re making bets that the market will lose. Naked short selling is like betting that your neighbour’s house will burn down, and then it happens to burn down. If they win we lose the whole world as we know it. I wrote this in 2009, with a lyric “A little grease (Greece) is floating out to sea and little pigs (Portugal, Italy, Greece and Spain) are bobbing up and down, they’ll send a storm then we’ll see, when the tide goes out who’s naked on the beach“, and it’s coming on now. The world is changing as we know it.
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Nothing on this site is intended as individual investment advice. We’re all watching which way the wind is blowing.
Elaine Diane Taylor 