22 May 2010

Jim Rickards on King World News


Jim Rickards Interview on King World News - click here to listen.

  1. Financial Warfare - protectionism, excess savings, managing exchange rates.
  2. Beijing consensus: neo-mercantilism can lead to outright financial warfare
  3. Bernanke worried about deflation more than anything else
  4. Money printing in US and Euro is inflationary and balances China deflationary forces
  5. Gold does well in both inflation and deflation - well suited to times of uncertainty
  6. Pullback in gold due to liquidation to raise cash in current crunch
  7. Gold sellers are daytraders, speculators, but buyers look like strong hands
  8. His Price target on gold to $2,000 short term and $5,000 intermediate term
  9. Merkel ban on naked short selling was absolutely right - stand up to Wall Street
  10. The way CDS are being used they are not part of a free market, but a rigged game
  11. Greece, Spain, and Italy are important NATO allies - we are allowing our own US investment banks to assault them financially (economic hitmen)
  12. Speculation is fine, but it must be transparent, well funded, and regulated
  13. No money down, shadow CDS market is completely destructive
  14. Who are the Bullion Banks serving? Who are the longs and the shorts?
  15. JamesGRickards is posting on twitter.com


There is a very important thought buried in the observation that Chinese deflationary forces and slack demand are deflationary, but being countered by money printing which is inflationary. That is a prescription for stagflation.

I thought he was rather easy on the Chinese who are egregiously manipulating their currency exchange rate to their advantage vis-à-vis the developed industrial nations of Europe and North America.