Wednesday, October 22, 2014

Chinese Growth is Set to Slowdown Further

I have been going for Chinese growth to get to 3 or 4%. I would say that China`s growth is already at 4%. I know they print 7.5%. But about half of the GDP they produce is wasted. So if I build a $5 billion train station in a small town that is $5 billion of GDP- this money is completely wasted because 10 people getting on the train are not going to pay for a $5 billion station. So you go around China with these ghost cities we have talked about before... So it is generating GDP, but it is completely wasted. If you adjusted the published GDP figures for the amount of waste, their actual growth is probably already roughly 4%. That is going to go lower.

- Source, Jim Rickards via RT

Monday, October 20, 2014

The Currency War Goes On

I think this is one long “currency war”. We are now getting into more of a battle, more of a confrontation. The US dollar is the only strong currency that cannot last: the US cannot have a strong currency, because we are desperate for inflation. We have done all thequantitative easing, we have raised the zero, we have issued further guidance, we have done a twist, and we have done three versions of QE. We have done everything possible. The only thing left is to try to cheapen the currency and in fact the dollar is getting stronger. The Fed might not have minded a stronger dollar. Six months ago it did look like the economy was getting stronger. We saw strong second quarter GDP. So it was a little bit of a good day. And Europe was desperate for the help: they were stepping into recession. Japan`s economy collapsed in the second quarter. So you could see the feds saying “okwe will have a stronger dollar and give Europe and Japan a break”. But that is over. Now the US is becoming a loser and we are the ones who need to take a break. The only way to get it is a cheaper dollar. I would look for that in the months ahead.

- Source, Jim Rickards via Russia Today

Sunday, October 12, 2014

Jim Rickards on China’s Slowdown & Marshall Auerback on Independence Movements


Our lead story today is China…because we thought we’d at least take one day off from talking about Scotland this week!
China’s central bank is injecting a combined 500 billion yuan into the country’s top banks – a move signaling the deepest concerns yet of an economic slowdown in China. Erin weighs in.

Then, Erin sits down with Jim Rickards, economist and author of “Currency Wars: The Making of the Next Global Crisis,” to discuss Europe and China. After the break, Erin speaks with Marshall Auerback, director of institutional partnerships of the Institute for New Economic Thinking, to continue the discussion on Europe.

And in The Big Deal, Erin and Edward Harrison go over the most recent iPhone 6 reviews and break down some of the new features.

- Source, Russia Today

Thursday, October 9, 2014

The Coming Stock Market Crash and The Death of Money


Is the end of the American Empire on the way? What will be the outcome if the dollar meets its death bed. Jim Rickards discusses gold, currency wars and the interest rates. He has some stark warnings.

Monday, October 6, 2014

Max Keiser and Jim Rickards - Currency Wars and the Death of Money


Jim Rickards appears with Max Keiser in New York. They discuss interest rates, the ongoing currency wars and how it is all going to end.

Thursday, October 2, 2014

Catastrophic Outcomes May Come Faster Than Expected


James Rickards, author of the new best-selling book called "The Death of Money," says the financial collapse will happen, but he is not sure of when it will come.
Rickards explains, "It is the thing you won't see coming that will take the system down.
Things happen much more quickly than what investors expect."
Rickards adds, "What will happen in gold is that it will chug along and then all of a sudden--boom.
It will be up a $100 an ounce, and then the next day it will be up another $200 an ounce.

Tuesday, September 30, 2014

Jim Rickards on Currency Wars and Mosler on Saudi Oil Price Cuts


Even as the unemployment rate drops, foreclosures dwindle, and the economy slowly recovers from the Great Recession, financial insecurity is on the rise in American urban areas according to a study conducted by the Corporation for Enterprise Development. Nearly half of all households in major cities don’t have enough money saved to cover essential expenses in an emergency. Erin weighs in.

Then, Erin sits down with Warren Mosler, president of Valance Incorporated, to discuss the many issues surrounding the US economy, the Fed, and employment. Of particular note are Mosler’s views on the recent price cut in Saudi crude prices and the negative impact it could have on production of shale oil in tight oil formations in the US.

After the break, Erin talks to frequent Boom Bust guest Jim Rickards to get a hold on currency wars – specifically regarding the Euro. He argues that the currency wars wax and wane but they are always there. Right now the currency wars are back in the spotlight.

And in The Big Deal, Erin and Edward Harrison discuss Alibaba’s record-breaking IPO. Do big IPOs outperform the market? No, they underperform if you look at the historical record.

- Source, Russia Today

Tuesday, September 9, 2014

The Tipping Point in Perception of Inflation

‘Inflation often begins imperceptibly, and gains a foothold before it is recognised. This lag in comprehension, important to central banks, is called “money illusion”, a phrase that that refers to a perception that real wealth is being created, so that Keynesian “animal spirts” are aroused. Only later is it discovered that bankers and astute investors captured the wealth, and everyday citizens are left with devalued savings, pensions, and life insurance….

‘Inflation can gain substantial momentum before the general public notices it. It was not until 1974, nine years into an inflationary cycle, that inflation became a potent political issue and a prominent public policy concern. This lag in momentum and perception is the essence of “money illusion”.

‘Once inflation perceptions shift, they are extremely difficult to reset. In the Vietnam era, it took nine years for everyday Americans to focus on inflation, and an additional eleven years to re-anchor expectations. Rolling a rock downhill is much easier than pushing it back up to the top.’

- Jim Rickards, The Death of Money