Jim Rickards: There is Only One Bank Left

This post Jim Rickards: There is Only One Bank Left appeared first on Daily Reckoning.

Going deep into the vaults for his latest analysis, economist and bestselling author Jim Rickards takes his knowledge underground.  His conversation is held within an actual vault in Sydney, Australia Rickards where he is interviewed by Lelde Smith, journalist and director for The Capital Network.  The discussion covers all the bases including the one bank that left to act.  Smith presses questions covering topics ranging from James Bond to Trump and Hillary – all the way down to conspiracy allegations, financial crashes and, most fitting for the location, gold.

“When real financial crises happen, the complex dynamics are identical to the way real earthquakes work.  Its complexity that the system builds up pressure on and then it snaps. It can happen in earthquakes.  It can happen in finance. In 1998 it was a “foreshot,” that was the Long Term Capital Management crisis (I negotiated that bailout). In 2008, we were days away from the sequential collapse of every bank in the world.  I take the ten year tempo and come forward ten more years.  I hypothesize a collapse in 2018, but it really could happen tomorrow.”

Jim Rickards has over 35 years of prudent experience in capital markets from his work on Wall Street.  He is also a special advisor regarding capital markets to those within the US intelligence community.  Rickards uses applied science to analyze global economic conditions.

The author was asked during the interview, “what do you believe gives your theories weight here and makes them more than a conspiracy, but a fact in your book? He took the question to drive that point that, “I use science. I use complexity theory. I use behavioral economics. I use an applied mathematical tool, called Bayes’ Theorem. I do it in plain English. You can make it as geeky as you want, but this book is very accessible. I have simple examples for explanation. I don’t like making claims without the backup.  It’s all backed up and not a conspiracy theory. It is all solidly based.”

Smith asked, what would you say if somebody asked you “markets go up and down, what will make this earthquake any different to any others where the earth still remains?” Rickards responded confidently saying that, “In the next crisis someone is going to have to bailout the central banks. As we go through these successive crisis, no problems are solved. Each crisis gets bigger than the one before. The bailout gets bigger than the one before.”

“So who is bigger than the central banks? There is only one clean balance sheet left in the world, that’s the IMF. Whether it is 2018 or sooner, the IMF will bail out the central banks with world money. That is what they call the special drawing rights (SDR).”

To see the full interview from The Capital Network click HERE. If you want more on Rickards forthcoming book, The Road to Ruin: The Global Elites’ Secret Plan for the Next Financial Crisis, out in just over two weeks you can find it by clicking HERE.

Regards,

Craig Wilson, @craig_wilson7
for The Daily Reckoning

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