James G. Rickards talks to James Turk

[SongSungAU]

This interview was recorded on August 4 2011 in London.

James G. Rickards talks to James Turk
http://www.youtube.com/watch?v=mAjYSq9tn4w



info from youtube:

James G. Rickards (http://www.tangentcapital.com) and James Turk, Director of the GoldMoney Foundation, talk about the European sovereign debt crisis and the European Central Bank buying Italian bonds. They talk about the ECB's role in the crisis and how it is becoming increasingly politicised, in contrast with its predecessor of sorts -- the Bundesbank. They talk about the possible differences between Jean-Claude Trichet and his successor Mario Draghi. James Rickards explains how Europe is developing a common fiscal policy with a common Treasury, in the form of the European Financial Stability Facility (EFSF), which will dictate fiscal policy to many member countries -- such as Greece -- in exchange for rescue funds. Rickards is bullish on the euro, among other reasons because the eurosystem owns 10,000 tonnes of gold.

Rickards and Turk debate whether or not central banks really own the gold they claim to own, and talk about how the current currency war -- with countries competing to see who can devalue their currencies the most -- is a disastrous zero-sum game. They discuss the problems facing countries whose currencies are appreciating rapidly, such as Brazil and Switzerland, and what these countries might do to curb this appreciation.

They comment on the recent debt-ceiling debate and how the compromise reached, despite all the headlines, does not actually include any real cuts, including only cuts in proposed increases. Rickards mentions his four possible scenarios for the future of the international monetary system: SDR, gold, multiple reserve currencies or chaos.

They talk about the potential for hyperinflation as the US government continues to rely on debt, instead of revenue, to finance an increasing portion of its outlays. Jim Rickards sees the potential for both deflation and hyperinflation and explains that it will depend largely on the actions of the Fed, with Bernanke leaning more in the direction of more money printing.

They discuss South Korea's recent acquisition of 25 tonnes of gold, as well as Indian and Chinese buying. Rickards explains that China is trying to bypass the world market by buying directly from miners.

James G. Rickards forthcoming book is: Currency Wars. The making of the next global crisis.

This interview was recorded on August 4 2011 in London.

[EO 11110]

maybe it's just me..

but this rickards cat reminds me of beck

a sheep herder - chasing down the strays

[Aurumag]

maybe it's just me..

but this rickards cat reminds me of beck

a sheep herder - chasing down the strays

Up until watching this interview, I would have argued with you, although I still like to hear what he says.

One statement he made really caught my attention:

The topic was gold currency backing, and comparing the reserves held my the EU and the US. Rickards stated that current dollar trashing policy will be good for any (supra)national currency which moves to a gold backing, and then my hackles stood-up.

Iraq
Iran
Libya
Venezuela

All attempting to denominate exports in anything besides the dollar; the latter three trying to go with gold.

How is that working out for them?

The current keepers of the global reserve currency obviously will not allow this, and thus Rickard's "analysis," along with his belief that the U.S. has gold in Ft. Knox, are as valuable to me as a tranch of mortgage-backed securities.

It's all sh*t!