“The whole system is going to come tumbling down.”
“When asked about whether he is suggesting an inevitable economic catastrophe or whether the system is setting up for disaster he responded, “Both items are true. It is the way we’re structured and the risk in the system that will lead to a catastrophe…” (all quotes from his blog HERE) Jim Rickards is a New York Times best-selling author of The Road to Ruin. He is a lawyer who worked on Wall Street for decades. Currently, he advises the U.S intelligence community and military outlets on topics covering currency wars and international economics.
Does he make it sound like there are good economic times ahead? Or do economic collapse and WWIII sound more likely?
“In 2008 the central banks and bailed out Wall Street. In the next crisis, who is going to bail out the big banks? In other words, each crisis gets bigger than the one before. Each bailout gets bigger than the one before. We’re now to the point where we’ve exceeded the capacity of the central banks to “save the day.” When the next crisis hits… where’s the money going to come from next? The Fed balance sheet has expanded from $800 billion to $4 trillion to deal with the last crisis. The problem is they have not normalized and are still at the $4 trillion mark. What are they going to do in the next crisis… Go to $8 trillion? What’s the limit? There is an invisible limit. The Fed knows it. They’re not prepared for the next crisis right now.”
“When asked about Trump’s leverage for the Federal Reserve, Rickards indicated, “Right now Trump does not want the Federal Reserve to raise rates because it would slow the economy. The Fed is going to raise rates because they have bad models… They have bad models and can’t see the recession coming. Trump is trying to understand what leverage he has on Janet Yellen – and that is her job position. He has indicated that he may very well keep Yellen if she does not raise rates. Then, along comes the Godfather – Robert Rubin, who is the most powerful figure in finance that is behind the scenes. He came out yesterday with an Op-Ed that said “don’t play politics with the Fed.” There is a struggle going on with the Fed. Trump will have five open seats at the Fed over the next year. Trump essentially owns the Fed.”
[youtube https://www.youtube.com/watch?start=17?v=aTwJBfQxiQM&w=1280&h=720]
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