Just finished reading a fascinating book by James Rickards
lcoopie
Posts: 8,872 ✭✭✭✭✭
The Death of Money: The Coming Collapse of the International Monetary System by James Rickards (Apr 3, 2014)
also read Currency Wars his last book
I learned a lot and I thought I might recommend these to the board.
also read Currency Wars his last book
I learned a lot and I thought I might recommend these to the board.
LCoopie = Les
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Basically, eventually the financial shenanigans that have been going on will cause a financial collapse and there doesn't seem to be any way to avoid it
Here is the synopsis from Amazon
The next financial collapse will resemble nothing in history. . . . Deciding upon the best course to follow will require comprehending a minefield of risks, while poised at a crossroads, pondering the death of the dollar.”
The international monetary system has collapsed three times in the past hundred years, in 1914, 1939, and 1971. Each collapse was followed by a period of tumult: war, civil unrest, or significant damage to the stability of the global economy. Now James Rickards, the acclaimed author of Currency Wars, shows why another collapse is rapidly approaching—and why this time, nothing less than the institution of money itself is at risk.
The American dollar has been the global reserve currency since the end of the Second World War. If the dollar fails, the entire international monetary system will fail with it. No other currency has the deep, liquid pools of assets needed to do the job.
Optimists have always said, in essence, that there’s nothing to worry about—that confidence in the dollar will never truly be shaken, no matter how high our national debt or how dysfunctional our government. But in the last few years, the risks have become too big to ignore. While Washington is gridlocked and unable to make progress on our long-term problems, our biggest economic competitors—China, Russia, and the oilproducing nations of the Middle East—are doing everything possible to end U.S. monetary hegemony. The potential results: Financial warfare. Deflation. Hyperinflation. Market collapse. Chaos.
Rickards offers a bracing analysis of these and other threats to the dollar. The fundamental problem is that money and wealth have become more and more detached. Money is transitory and ephemeral, and it may soon be worthless if central bankers and politicians continue on their current path. But true wealth is permanent and tangible, and it has real value worldwide.
The author shows how everyday citizens who save and invest have become guinea pigs in the central bankers’ laboratory. The world’s major financial players—national governments, big banks, multilateral institutions—will always muddle through by patching together new rules of the
game. The real victims of the next crisis will be small investors who assumed that what worked for decades will keep working.
Fortunately, it’s not too late to prepare for the coming death of money. Rickards explains the power of converting unreliable money into real wealth: gold, land, fine art, and other long-term stores of value. As he writes: “The coming collapse of the dollar and the international monetary system is entirely foreseeable. . . . Only nations and individuals who make provision today will survive the maelstrom to come.”
<< <i>Optimists have always said, in essence, that there’s nothing to worry about—that confidence in the dollar will never truly be shaken, no matter how high our national debt or how dysfunctional our government. >>
So very true. Somehow the laws of economics miss us.
Getting messy out there.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
<< <i>Rickards? What does he know? Just kidding, he knows the results of currency manipulation better than anyone. Then again, like many that have been proven correct, he is a doomsayer in the eyes of those with their eyes closed. >>
Startling fact is that all the worlds economic engines, US, UK, Germany, China, Japan etc. are all in the free money will fix everything camp.
As if economies are no longer sustainable without the money supply doubling every three years.
<< <i>Startling fact is that all the worlds economic engines, US, UK, Germany, China, Japan etc. are all in the free money will fix everything camp. >>
A more important fact is that they are all in the race to have the weakest currency in order to prop up their exports and the resulting employment it brings. While the result may save some jobs it will destroy the purchasing power of those with paychecks.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
<< <i>While the result may save some jobs it will destroy the purchasing power of those paychecks. >>
Of course the apologists will say that everyone can go back to school and get an advanced degree and rise above the middle class. That may be true, but we will always have scores of millions of folks in the middle and they are getting squeezed hard. Looks like stagflation of the 70's is occurring as consumers are downgrading on groceries and non essentials to balance a stagnant paycheck.
The monetary magic works like the Sigfried and Roy show in Vegas. Astounding and breathtaking until it reaches a tragic end.
What am I going to do with that?
I give away money. I collect money.
I don’t love money . I do love the Lord God.
<< <i>Gold , land and fine art?
What am I going to do with that? >>
Hoard the gold , pay taxes on the land and grumble about how illiquid art is
<< <i>
<< <i>Gold , land and fine art?
What am I going to do with that? >>
Hoard the gold , pay taxes on the land and grumble about how illiquid art is
I give away money. I collect money.
I don’t love money . I do love the Lord God.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
I knew it would happen.
Liberty: Parent of Science & Industry
Do tell!
I knew it would happen.
Ciao
Liberty: Parent of Science & Industry
I did a Google search on this and the only links I find all go back to the same source. What exactly are these "collapses"? I think I understand to what he is referring, but I would differ on the "chicken or the egg". To me, financial disruption (not collapse) was a result of war, rather than war being a result of financial disruption.
prepare for the coming death of money
I keep hearing gold is money. What gives? Stop with the rhetoric and hyperbole Mr. Rickards and perhaps your message would be more well received. But I understand your business model, fear sells, and you are selling a book, arent you?
Knowledge is the enemy of fear
<< <i>To me, financial disruption (not collapse) was a result of war, rather than war being a result of financial disruption. >>
Strange how the kensyian school of thought sees war as a way out of economic disruption. And we all know that the kensyian approach has been and is the rule of the land.
<< <i>I keep hearing gold is money. What gives? Stop with the rhetoric and hyperbole Mr. Rickards and perhaps your message would be more well received. But I understand your business model, fear sells, and you are selling a book, arent you? >>
I believe you will find that Mr. Rickards talks about currency of which he has great knowledge. He is selling his message whether it be through books he profits from or interviews and commentary that he does not profit from. Are your favorite finacial/economic messengers just trying to sell a book? Or are they trying to sell a message you agree with? Opinion on a messenger boils down to what one thinks of the message. Time will prove Mr. Rickards to have known exactly what he was talking about.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
<< <i>I keep hearing gold is money. >>
...as store of wealth, it has done significantly better than anything printed on a piece of paper (collectible currency notwithstanding).
That is a principle function of money, to store wealth. The other function of course is a device of exchange. Paper does that job much better than gold......at least for now.
No, I am not selling any books, newsletter subscriptions, or endorsing a product or company.
Knowledge is the enemy of fear
<< <i> Are your favorite finacial/economic messengers just trying to sell a book?
No, I am not selling any books, newsletter subscriptions, or endorsing a product or company. >>
The question is not about you. It is about the professionals whose work/writings you agree with.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
<< <i>
<< <i>I keep hearing gold is money. >>
...as store of wealth, it has done significantly better than anything printed on a piece of paper (collectible currency notwithstanding).
That is a principle function of money, to store wealth. The other function of course is a device of exchange. Paper does that job much better than gold......at least for now. >>
When the full gold standard was in effect prior to 1914 gold did have a "paper" twin....called "real bills." Those paper chits circulated throughout the economy to provide a way to pay for time sensitive goods and services that typically required settling within a 91 day window. One could call them "paper" gold but they carried the same meaning as gold. Merchants passed these amongst themselves at each stage of the production/services cycle. During WW1 the gold standard was basically vacated to finance the war. After the war, real bills were not brought back as part of this modified gold standard. In essence, it was no gold standard at all. Some sources suggest that this modification was done to further destroy the German economy. At least prior to 1914, a gold IOU in the form of a "real bill" meant you could get paid in real gold or could use that chit to buy additional goods or services from the next guy ("good as gold."). Within 91 days the chit was turned in for gold and the process would start all over again. This 91 day window ensured that debts were extinguished. Today, debts are continually passed on through continued money printing. Debts are not extinguished....just added to. Money Base supply chart below.
Money Base (M0) increased by $1 TRILL in 2013 and a factor of 5X since fall of 2008
M2 graph - nope, no debt being extinguished here
Debts are not extinguished and the penalties for holding too much debt are diminished as a result. As long as no physical shortages ever appear, this can be done for a long time.
Or, until one of the debts can't be paid in time by someone who isn't part of the team. Then, it's Lehman-time all over again only bigger.
I wonder who it will be?
I knew it would happen.
<< <i>I wonder who it will be? >>
One may look to China for that answer as Sino corporate debt now exceeds US corporate debt..
Gold: Comedy of Errors
"After years of monetary experimentation, the inflationary consequences are only now being felt. The seeds of inflation have been planted. We are in an environment that is eerily similar to 2007-2008, but with even more fundamental problems. Nothing has changed."
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
<< <i>
<< <i> Are your favorite finacial/economic messengers just trying to sell a book?
No, I am not selling any books, newsletter subscriptions, or endorsing a product or company. >>
The question is not about you. It is about the professionals whose work/writings you agree with. >>
Not only who you agree with but where you put your money where their mouth is.
I'm a huge fan of Jeremy Siegel and have been for several years.
I give away money. I collect money.
I don’t love money . I do love the Lord God.
<< <i>
<< <i> Are your favorite finacial/economic messengers just trying to sell a book?
No, I am not selling any books, newsletter subscriptions, or endorsing a product or company. >>
The question is not about you. It is about the professionals whose work/writings you agree with. >>
My point is that I think for myself. I do not need confirmation from someone else. I do not need my thoughts and ideas validated. I need onl to prove to myself. To take responsibility for my own actions and decisions and to learn and analyze my own successes and failures.
Knowledge is the enemy of fear
<< <i>
<< <i>
<< <i> Are your favorite finacial/economic messengers just trying to sell a book?
No, I am not selling any books, newsletter subscriptions, or endorsing a product or company. >>
The question is not about you. It is about the professionals whose work/writings you agree with. >>
My point is that I think for myself. I do not need confirmation from someone else. I do not need my thoughts and ideas validated. I need onl to prove to myself. To take responsibility for my own actions and decisions and to learn and analyze my own successes and failures. >>
Must be nice to know it all.
I'm one of those poor souls that has to take in as much information as possible, as well as the opinion of professionals to form my own half witted investment thoughts. I'm a firm believer that the best decisions are made by those with the best information. I'm also a firm believer that having the best information involves contemplating the not-so-best information.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
<< <i>
<< <i>
<< <i> Are your favorite finacial/economic messengers just trying to sell a book?
No, I am not selling any books, newsletter subscriptions, or endorsing a product or company. >>
The question is not about you. It is about the professionals whose work/writings you agree with. >>
My point is that I think for myself. I do not need confirmation from someone else. I do not need my thoughts and ideas validated. I need onl to prove to myself. To take responsibility for my own actions and decisions and to learn and analyze my own successes and failures. >>
If I recall correctly (and I can certainly be wrong) you are in the financial industry in some capacity. If so, then I am sure you would have access to internal publication and studies that you perhaps put credence in. These would most likely be publications not as readily available to the others not in the industry.
<< <i>
<< <i>
<< <i>
<< <i> Are your favorite finacial/economic messengers just trying to sell a book?
No, I am not selling any books, newsletter subscriptions, or endorsing a product or company. >>
The question is not about you. It is about the professionals whose work/writings you agree with. >>
My point is that I think for myself. I do not need confirmation from someone else. I do not need my thoughts and ideas validated. I need onl to prove to myself. To take responsibility for my own actions and decisions and to learn and analyze my own successes and failures. >>
Must be nice to know it all.
I'm one of those poor souls that has to take in as much information as possible, as well as the opinion of professionals to form my own half witted investment thoughts. I'm a firm believer that the best decisions are made by those with the best information. I'm also a firm believer that having the best information involves contemplating the not-so-best information. >>
I learned long ago that I do not know it all, but I do know what I don't know. My quest for information, not opinion, is relentless. I have found that most information is really just disguised opinion.
Knowledge is the enemy of fear
Knowledge is the enemy of fear
<< <i>Debts are not extinguished....just added to. >>
Gold And Silver - Western World Is Upside Down
". . .there is never enough money to pay off both principal and interest because only the debt was loaned into existence. From where does the interest come?
Imagine a world of three people: One has a printing press and creates $1,000. The other two need to borrow $500 each. The money man lends the money to each for one year and charges 10% interest. At the end of one year, the money man is owed $1,100. With only $1,000 in existence, from where will the interest come? Just like the Fed prints all the fiat debt, it never prints the interest to pay it. This is why debt can never be repaid."
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
Wait, does he buy some raw materials, and build something that, with the energy and ingenuity and craftsmanship that he put into it, is now Worth more than $500?
THAT is why there must be inflation in the money supply.
Liberty: Parent of Science & Industry
It doesnt? I thought it was continuously printing.
Imagine how valuable a dollar would be if we stopped making more. In a growing economy with a growing population, demand for that dollar would be ever increasing. If someone had a dollar they would never spend. It would never enter the economy to be used over and over again.
Knowledge is the enemy of fear
Glad I found Rickards 10 years ago.
I LOVE these old threads.
Since the OP..
Average home price up 50%.
SP500 is up 225%.
Gold is up 80%.
Silver is up 40%.
Hourly wages up 42%.
Dollar vs yuan up 16%
Dollar vs rouble up 160%
Doom and gloom rhetoric up ~.
Jmski would probably agree that "I knew it would happen".
Knowledge is the enemy of fear
FYI - Rickards publishes blog posts on Daily Reckoning these days:
https://dailyreckoning.com/author/jrickards/
Yelling at clouds on pmbug.com
How much is money creation up?
How much is inflation up?
How much is the deficit up?
How much is the total debt up?
I knew it would happen.
Why are you glad ?!
I give away money. I collect money.
I don’t love money . I do love the Lord God.
I manage money. I earn money. I save money .
I give away money. I collect money.
I don’t love money . I do love the Lord God.
I like that a lot !!!!
I was just thinking this rickards clown has been spewing the same bunker dwelling doom and gloom for decades......then I happened to look at the date of the OP. LOL Unbelievable people can make a living spewing such nonsense. RGDS!
The whole worlds off its rocker, buy Gold™.
"The children around Billy's home town, seemed to have nothing better to do, than run around their houses with their tongues from their mouths"... j prine