Jim Rickards: The Next Step Will Be Financial Repression

In a can’t miss conversation Jim Rickards joins Dr. Ron Paul  on the Liberty Report to discuss his latest book The Road to Ruin.  The two economic maven’s cover currency wars and when the looming financial crisis will be, what to expect… and most importantly, how to prepare.

Jim Rickards is a New York Times best selling author, economist and lawyer who has worked on Wall Street and advised the U.S federal government on international economic issues and financial threats.

Dr. Paul began the discussion with a pivotal question on timing and what’s in store for the dollar. Rickards remarked that, “The reason we haven’t had a big spike in interest rates is because the US banking system is now captive to the Federal Reserve. For every seller there is a buyer. The banks are being forced to pick up the slack. They are the buyers of last resort.”

“In 2008, the big banks were bailed out and the bankers couldn’t believe their luck. They said ‘you saved my stock, you saved my bank… and I can still keep my million dollar bonus.’ They felt they got a free pass. What they didn’t realize is they were now working for the government.”

Ron Paul and Rickards Road to Ruin

Jim Rickards told Dr. Paul, “One manipulation leads to another. Once you go down that path – holding interest rates low and playing the federal reserve balance sheet, you have to keep going down. The next step will be financial repression where the banks are forced buyers of treasury securities.”

Rickards directed attention to the next crash and why financial repression is looming saying, “In 2008, the central banks bailed out out Wall Street. I take the story forward ten years later to 2018, but that is just an estimate. This is something that could happen tomorrow… In 2018, if not sooner, who is going to bailout the central banks? They haven’t normalized their balance sheets. They haven’t undone the money printing they did in 2008.”

“They no longer have the capacity to save the system. The next bailout is going to come from the International Monetary Fund (IMF) with their world money, the special drawing rights (SDR). They have got the only clean balance sheet left. They are going to flood the world with trillions of SDR’s. They’ll finally get the inflation that they have been wanting to have all these years.”

To watch the full interview on the Ron Paul Liberty Report click here. To find Jim Rickards latest book The Road to Ruin: The Global Elites’ Secret Plan for the Next Financial Crisis click here.


Craig Wilson, @craig_wilson7
for The Daily Reckoning

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