Jim Rickards on Fed Policy and the Market Impact of U.S. Elections

In Jim Rickards latest interview (full interview found here) while on location in Sydney, Australia he discussed his forthcoming book “The Road to Ruin: The Global Elites’ Secret Plan for the Next Financial Crisis.”  While at The Australian Broadcasting Corporation (ABC) Rickards reveals his full take on the upcoming U.S elections and analysis on the latest Fed policy.

Jim Rickards Financial Crisis ABC

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Ticky Fullerton, the ABC presenter for the show The Business, asked Rickards about the anticipation of a market crisis by elites.  After explaining that his commentary is well documented he noted on the looming financial crisis that “The elites see this coming. They are signaling each other. When I say elites, it’s not a deep dark conspiracy.  Christine Lagarde, Mario Draghi, Claudio Borio and Janet Yellen [that] are central bankers, academics and policy makers from around the world. They all know how fragile the system is.”

“They don’t want to talk about it publicly. I have had a lot of private one-one-one’s with a number of people I would put in that circle. Privately they will tell you the system is unstable.”

During the interview he was pressed on what would trigger the market crisis.  Rickards emphatically responded saying, “It could be anything – that’s the point. It’s like what triggers and earthquake. Nobody knows. What triggers an avalanche? It was a “snowflake.” But nobody ever sees the snowflake. What you look at is the instability of the system. Whether it was a seismic system or an avalanche – it’s the same thing with the financial system. It is an inherently unstable system and it wouldn’t take much.”

While speaking on what will be exceptional about the next likely financial crisis Rickards responded, “When the next crisis hits, the difference will be that in ‘98 Wall Street bailed out a hedge fund, in 2008 central banks bailed out Wall Street in 2018 who is going to bailout the central banks? It has got to be the IMF. They are the only ones left with a clean balance sheet. They are going to use their special drawing rights, this world money, to re-liquify the world.”

To see the full video with Jim Rickards that includes his take on the elections and Fed policy click here.

Regards,

Craig Wilson, @craig_wilson7
for The Daily Reckoning

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