Jim Rickards joins Greg Hunter at USA Watchdog to discuss his analysis on hyperinflation coming with a massive economic meltdown on the horizon. Rickards highlights his forthcoming book, The Road to Ruin and clears through the financial jargon to give a full synopsis of what he views as the next crisis… And what you can do to prepare. In the discussion he highlights his research on the global elites’ and the plan for the next financial crisis.
Rickards reveals, “Where will the liquidity come from in the next liquidity crisis? The answer is the International Monetary Fund (IMF). They have a printing press. The Fed has a printing press, they can print dollars. The European Central Bank can print the euro. The IMF has a printing press, they can print special drawing rights (SDRs). It is a funny name, but just think of it as ‘world money.’ The IMF is the central bank of the world… They can print world money, and they will by the tens of trillions.”
“The central banks have been trying to get inflation for eight years. It is not a secret. They all have 2% inflation goals. None of them have come close. None of them can get the inflation goals they are aiming for. At the end of the day the SDR will be that hyperinflationary event that they have failed to get so far.”
Jim Rickards has advised the US government’s intelligence community on international economic issues and is an economist, lawyer and former Wall Street negotiator. He is also a New York Times best selling author.
Rickards spoke about China entering the “world money” club by nothing that, “October 1st was a big deal. That’s the day they included the Chinese Yuan in the special drawing rights. The SDR, this world money, is not backed by anything. There is a set of currencies, you can call it a “basket” if you want. That is used mathematically to determine the value of the SDR.”
“Until September 30 there were four major currencies used in the SDR formula that included the US dollar, British sterling, European Union’s euro and the Japanese yen… There is no way that the Chinese yuan is ready to be a reserve currency. It does not meet the IMF’s criteria for reserve currency status. The IMF bent the rules for political reasons to include the Chinese yuan.”
“When you have to flood the zone with SDRs, and you have to print (an estimated) five trillion SDRs to reliquify the world in the next crisis, you’re going to need approval from China. China is the world’s second largest economy. They are 15% of global GDP. They are getting an increasing voice in the IMF. There is no way the IMF executive committee is going to approve this unless China agrees. China is saying, ‘why should we approve it if we are not in the club?’ So now China is in the club, on board, and a part of this world money club.”
The interview goes on to explain what to do in best positioning yourself in the event of the next financial liquidity crisis.
To get the full scoop, check out the interview by clicking here. To find Jim Rickards book The Road To Ruin: The Global Elites’ Plan For The Next Financial Crisis, click here.
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This story originally appeared in the Daily Reckoning