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 New Case for Gold, The Death of Money, Currency Wars and the soon-to-be-released The Road to Ruin, by Max Keiser of The Keiser Report.
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
The Road to Ruin
Negative Interest Rates
Interview Link at 13:40 min.
THE ROAD TO RUIN
Jim’s new soon-to-be-released book is The Road to Ruin: The Global Elites’ Secret Plan for he Next Financial Crisis.
Max reads the back cover:
A drumbeat is sounding among the global elite.
Signs of a worldwide financial meltdown are unmistakable. This time the elite have an audacious plan to protect themselves from the fall out.
They’re hoarding cash, and locking down the global financial system when the crisis hits.
The monetary agencies have been issuing warnings to a small group, and they are preparing for this catastrophe coming.
What’s coming isn’t the left versus right or conservatives versus liberals, it’s the elites versus everyone else.
The title of the book sounds like it’s a prediction, but it’s not really. Everything that Jim says in the book is already in place.
We see currency wars in the news in 2016, but Jim released the book Currency Wars in 2011 based on his knowledge that they had really started in 2010 and it’s the same currency war going on today.
The Death of Money, released in 2014, talked a lot about SDRs and we’re seeing that becoming a big topic today. Jim knew back then as he researched the signs that were already there.
It’s the same with The Road to Ruin. It sounds like a prediction, but it’s not really. Everything Jim talks about in the book is already in place.
All the plans have been made, all the laws have been passed.
The elites are signalling each other. It’s twenty layers deep on the IMF (International Monetary Fund) website and in the BIS (Bank for International Settlements) Annual Reports. It’s four layers deep on the G20 working papers. The communications have attachments that are 40 pages long, and you have to dig down deep inside to find it.
The plan is there.
In 1998 Wall Street bailed out a hedge fund (Jim was part of that negotiation). In 2008 the central banks bailed out Wall Street. In 2018, assuming a ten-year tempo (but it could be tomorrow), who is going to bail out the central banks?
Each bail out gets bigger than the one before.
Who is bigger than the central banks? There’s only one clean balance sheet left and that’s the IMF (International Monetary Fund).
They’re going to print SDRs but it’s going to be messy. Before they get there people will want their money and they’re not going to get it.
A financial panic is where everyone wants their money back.
In 1998 they gave you your money back and in 2008 they gave you your money back.
Next time they’re not going to give you your money back. They’re going to lock down the system, close banks, shut down ATMs, close exchanges and money market funds will suspend redemptions.
It’s not hypothetical. Every law and regulation is already on the books. The elites are signalling each other and investors are going to find out the hard way.
Max tells of a 2 hour and 40 minute animation on the web of the sinking of the Titanic. For the first hour nothing is really happening. They’re taking on some water but no one is panicking. It seems that in 2008 the global economy hit the iceberg. Up to now it’s been like the first hour of the sinking of the Titanic.
People know something bad happened in 2008, but what’s going on now is part and parcel of that collapse. We’re getting ready for the real results.
Jim says that in 2008 the Federal Reserve took their balance sheet from $800 billion to $4.2 trillion dollars. They bailed out, re-liquified, and did $10 million is swaps with Europe so they could get dollars. If they had normalized and brought the balance sheet back down they would have saved the system. But they didn’t.
What happens when the next crisis hits?
They can legally print to infinity but there’s an invisible confidence level and we’re going to find that limit the hard way.
The next crisis is going to be bigger than the central banks and they’re going to have to turn to the IMF.
The IMF will print SDRs (world money).
We’re entering a period in history that is post the Big Four economic school theories which are now obsolete:
They all have things to offer, but science moves on. Going forward will be Behavioural Economics and Complexity Theory. For example, production now moves to where human capital is, and the science of economics moves forward.
(The interview goes into detail on these theories and Jim’s objections to each.)
Jim’s prediction a few years ago about China and the SDR has come true.
The Chinese yuan is not even close to being a world reserve currency. It’s decades away and maybe longer.
The SDR is already a reserve currency, not the biggest but growing, so China decided to get on the “SDR bus”.
When the next crisis hits, and we’ll be lucky to make it two years from now, China is part of the reserve currency that has the only clean balance sheet. The IMF will have to flood the world in SDRs and they need China’s support.
The yuan didn’t meet the IMF’s criteria to be in the basket but was put in anyways for political reasons, so the IMF would have China’s support when it’s time to print and flood the world with SDRs.
Ice-Nine is a fictional solid polymorph of water in Kurt Vonnegut’s novel Cat’s Cradle. It’s a molecule of ice that would turn any molecule of water is came in contact with into ice. Ice-Nine was kept in a vial because it was a type of weapon of mass destruction, as a single drop would spread from water molecule to water molecule and the whole planet would eventually freeze. It was conceived with indifference but misused to disastrous ends.
Jim uses ice-nine as a metaphor of how they’re going to lock down the money system.
When the next crisis hits in 2018, or sooner and maybe tomorrow, they’re not going to be able to print the money to give you your money back. It will start
For example, if and when money market funds suspend redemptions, (which used to be illegal until they very recently changed the rules), what will people do when they want their money and can’t get it?
They’ll sell their stocks.
So they’ll have to close the stock exchange.
Then what will people do?
They’ll sell bonds.
They’re going to have to close the bond market.
Like ice-nine it will spread and eventually the entire system will be locked down.
Max points out that the global financial world is connected where every unit of account is connected through a bank, or central bank or corporation, like all the water in the world is connected.
In the last crisis France shut down bank machines without consultation and you could only take out 200 euros a day.
Jim says you can’t close down part of the system without closing the whole system because people will migrate to whatever window is open.
The authorities will say it’s temporary, just like in 1971 when Nixon said that suspending gold redemption for US dollars was temporary.
NEGATIVE INTEREST RATES
They’re imposing negative interest rates and people are pulling their cash out of the bank.
So they have to eliminate cash.
We’re already seeing this. They got rid of the 500 euro note and it’s very difficult to take out large sums of cash from the bank now.
They’re forcing everyone into a digital system.
(Christine Lagarde, head of the IMF, mentioned that “digital banking is coming onto the radar screen in a big way” in a Bloomberg interview last week.)
The Road to Ruin is available for pre-order at Amazon.
Jim Rickards can be found on Twitter and at James Rickards Project.
Jim has been telling me about this book for a few years now. His interviews over the past years have included the changes to laws and regulations that protect those who know what’s being set up. Past 3 Minute Gold News articles talk about it in detail.
All societies, as all closed biological systems, move in cycles of growth and decline. But the normal winter part has been delayed this time because of the creation of massive debt. It’s just the promise to pay tomorrow, which means the system moved to the end of its pendulum swing of growth and was about to swing back to the conservation and maintaining end of the pendulum. It is at a critical point and the swing back will come with more force than is natural. It is in the declining time that systems get rid of rot and shed parts that do not help the system survive. Those who gain from the current system don’t want that to happen, so they extend the growth through promises to pay tomorrow, and tomorrow, and in the years to come. Then they looted the system of resources while lying about paying tomorrow. They’re getting in the lifeboats and need to point to shiney things, to free bread and circus shows, in order to try to distract the population before a mass of people see reality and rush for the exits.
But all pendulums swing and all seasons turn. What’s coming is the end of growth, the mechanical system where it only works if it gets bigger and bigger. There’s nowhere to grow to now. The internet shows everyone worldwide how those ‘with’ have more, and those ‘without’ are not okay with it.
But in order to even out the prosperity to everyone around the world it means those ‘with’ have to have less. Do those who have more want to have less? If the US has more then it means each American has to move to a lower standard of living. Some will be fine with that and some may not. There are those who have a different view of how it should be. Each viewpoint is getting louder as the time and resources are being squeezed. Capitalism moves capital to those who are stronger or smarter. Moving to a multi-polar world means sharing goods and power. But even then it’s a consolidation and will be led by a ruling elite. It is the elite’s desire for it to happen in a controlled and calm manner. They are getting some backlash now from those feeling the effects.
It’s a massive change coming. It’s AI and new energy technology and digital reality. The re-balancing of power as this system changes to the new. Meanwhile space is being explored as we expand and reach for more growth physically. We’re not just talking about the end of a cycle of economic growth into recession, or even a depression. It’s the end of an age. It’s the end of Modernity.
Elaine Diane Taylor~
October 9, 2016
Gold is $1,257.60 U.S. per ounce
Not Much of a Holiday
words and music Elaine Diane Taylor
© 2015 Intelligentsia Media, Inc. All rights reserved.
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.
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.
Coins and Crowns
words and music Elaine Diane Taylor
© Intelligentsia Media Inc. All rights reserved.
from the album Coins and Crowns available on iTunes
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.
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.
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.