3 Minute Gold News – Jim Rickards – Fox – June 29, 2016

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, Currency Wars, and the newly released bestseller The New Case for Gold, by Trish Regan at Fox Business.

Jim is the editor of Strategic Intelligence, Chief Global Strategist for West Shore Funds, former general counsel for Long Term Capital Management, and a consultant to the U.S. Intelligence community and U.S. Department of Defense.

by: Elaine Diane Taylor

 

Topics:

China
Donald Trump & Tarrifs

 

Jim Rickards

Jim Rickards interview w/ Fox Business June 2016

Interview Link

 

CHINA

Donald Trump is right when he says that China does not play fair.

China is a currency manipulator — but everyone is a currency manipulator, including Europe and the United States.

The currency wars have been going on since 2010 and we’ll probably still be talking about this five years from now.

The leaders have a whole tool kit for the currency wars but the problem is that there’s too much debt and not enough growth.

Simple as that.

So how do you get growth when you can’t get it from productivity?

You steal it from your trading partners by cheapening your currency.

All that the world’s been doing is taking turns devaluing — in 2010 a cheap yuan, 2011 a cheap U.S. dollar, 2013 a cheap yen, and 2014 and 2015 a cheap euro.

Now it’s China and the United State’s turn again to have the cheap currency.

SHANGHAI ACCORD

(At the Shanghai meeting of the G-20  in February 2016, finance ministers and central bankers pledged, for the first time, to consult closely on foreign exchange rates.)

What they’re trying to do is to maintain the peg between China and the U.S, and then cheapen the dollar. (This take the yuan down at the same time without the shock to the market that happened in August 2015 when China de-pegged.)

The U.S. will then get an advantage vis-a-vis Japan and Europe (as opposed to an advantage from China).

What the U.S. wants to do is to import inflation by having higher import prices.

Europe accepts this, and Japan is not going to intervene with the plan because they’ve been told not to, basically threatened, by Christine LaGarde of the IMF  and U.S. Treasury Secretary Jack Lew, to not devalue the yen.

(“Secretary Lew underscored that the commitments made by the G-20 in Shanghai to use all policy tools to promote growth – fiscal policy, monetary policy and structural reforms – and to refrain from competitive devaluation and communicate closely have helped to contribute to confidence in the global economy in recent months,” according to a statement by the Treasury Department.)

(IMF Managing Director Christine Lagarde said that currency intervention was only appropriate to avoid “very disruptive volatility.”)

DONALD TRUMP & TARRIFS

It’s not just tarrifs but also non-tarrif barriers that are used in trade in order to gain an advantage.

A famous case is when the Japanese once banned French skiis because they said that Japanese snow is different than French snow.

There’s a lot of ways to play the currency wars game.

On August 15, 1971 President Richard Nixon put a 10% across-the-board tarrif on all imports — every single import.

Nixon didn’t really want a tarrif. What he wanted was to get Germany, Japan and France to agree to devalue the U.S. dollar.

Nixon used tarrifs as a negotiating tool and that’s how Jim sees Donald Trump.

Trump threatens tarrifs and maybe puts some tarrifs on, but not because he wants tarrifs. It’s because he wants a better deal on intellectual property.

Trump is about the art of the deal.

 

The New Case for Gold is available at Amazon.

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

 

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Gold is $1,318.30 per ounce U.S.

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While looking through an abandoned gold mine in Nevada there were miles of tunnels in a maze through the mountain.

So many ways to get from here to there and every one hidden from the surface.

 

Elaine~

 

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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

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 international waves. More dealing to come. More standing in line for those who owe. Who owes? There’s a long line of nations in debt and this is far from done.

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AlbumCover.PreparingfortheFall

Preparing for the Fall live boutique album 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 the gold standard and sound money, and borrows to go to war, then 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 wisdom we need. The sayings that were copied are the truths, the gods, of our world. All the empires who followed the gods of the marketplace instead have fallen, and there’s terror and slaughter when the gods of the copybook headings return. The lyrics are by Rudyard Kipling. 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. Naked short selling is like betting that your neighbour’s house will burn down. But in this scenario it happens to burn down. If the bankers win then 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 and 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.

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