James Rickards: An End to Globalism

Jim Rickards joined the BBC’s Gordon Brewer on Radio Scotland to discuss globalism and his latest best seller The Road to Ruin.  During the conversation Rickards outlines exactly what he believes is a strategy by global elites’ to disguise a looming financial collapse.

When asked about the Donald Trump positioning he responded, “Donald Trump is not a conservative. He is a populist. He is a nationalist. He is a bit of a “Trumpist.”  His policies are mercurial, subject to change.  He ran as a “champion of working people.”  That’s why he got those votes in Pennsylvania, Michigan and Wisconsin that broke up Hillary Clinton’s “blue wall.” So I could very well imagine Trump adopting pro-labor policies to help the working man.”

Jim Rickards is a lawyer and financial analyst who just released his New York Times best selling book, The Road to Ruin.  Rickards has advised the U.S intelligence community and has also worked in the world of Wall Street for decades.

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When asked about the big thesis of his latest book, The Road to Ruin, he is asked to explain what Ice 9 and the premise of his book relates to when examining the next financial crisis.  “I look at three crises.  I look at 1998, 2008 and 2018 – which is obviously hypothetical.  But the point is it could be tomorrow.  Each crisis is bigger than the one before it.  Each response is bigger than the one before.”

“We are now at the point where central banks no longer have the ability to respond because they have not normalized their balance sheets or interest rates following the crisis of 2008.  All of the money that was printed is still there, those near-zero interest rates are still there.  The ability to print more money and lower rates is highly constrained.”

“The question is, where will the money come from?  How will we reliquify the system in the next global liquidity crisis, which is – as I have said – just a matter of time?  The answer is the International Monetary Fund (IMF).  The IMF can print world money.  They call it the Special Drawing Rights, or SDR, which is a rather technical name designed to throw people off.  It is world money, printed by a world printing press and run by the IMF.”

“(But when the crisis happens) it will take three to six months to gather some consensus… so what will happen when the entire world wants their money back but there is no money?  The answer is, they will lock down the system.  Money market funds will suspend redemptions, ATMs will be reprogrammed to only allow a certain amount of money.”

When posed the question about why the public doesn’t do anything regarding the threat of a crisis and globalism he responded, “The answer is that the bankers control the system.”

The BBC’s Gordon Brewer then asked, “Do you think there is an argument for completely and radically separating out into different institutions – than banks that take depositors money?

Rickards responded emphatically, “Absolutely. Number one, separation.  Take deposit taking along with lending, and then take securities, underwriting and sales – they have to be completely separated.  We learned this lesson when the United States did this in 1933 under Glass-Steagall legislation.”

“The best example, snow is building up on the mountainside.  Any mountaineer can look at it and say there is a danger of an avalanche.   What do ski patrols do in the morning?  They go out and they set up dynamite.  They purposefully break up the snowpack so that it doesn’t turn into an uncontrolled avalanche that kills skiers.  We need to do the same thing.”

To listen to the full BBC Radio interview on globalism and what he believes is next for the world financial system click here. If you are interested in learning how to get your own FREE copy of Jim Rickards’ latest book, The Road to Ruin, click here.

Regards,

Craig Wilson, @craig_wilson7
for the Daily Reckoning

The Daily Reckoning