“The government is very good at making things overly complicated for the purpose of obscuring what’s really going on from the public,” observed hedge fund manager Erik Townsend during our interview in May. He was making a point about the 2008 bailouts. The Federal Reserve played a leading role, applying trillions in paper-clip and rubber-band solutions. The Fed’s balance sheet swelled[...]
Tag: jim rickards
The Central Bank Experiment that’s Destroying the Economy
By Addison Wiggin Addison Wiggin: When Janet Yellen gave her first news conference as Federal Reserve chair in March, the media pounced on her for “stumbling”; she was asked how soon they’d start raising the fed funds rate once quantitative easing was over and she said “about six months.” The market freaked out for an hour or so. But what else could she say? Imagine if she’d been[...]
Author James Rickards: Global Economy Is in ‘Indefinite Depression’
By Dan Weil It wouldn't be fair to call ace money manager James Rickards an optimist about the global economy. "We are in a depression. This is a global depression," the author of "The Death of Money: The Coming Collapse of the International Monetary System" told RT news service. "It started in 2007, and it is going to continue indefinitely. Depressions are structural, monetary solutions are[...]
The Safest Investments in a Dangerous World Market – Jim Rickards
The relationship between geopolitics and global finance has rarely been more densely connected and complex as it is today. Knowing how to invest and allocate assets among various classes requires understanding the strategic drivers of valuation and volatility. Here is an around-the-world tour of flashpoints and their implications for investors. The disintegration of Iraq is far from over. The[...]
6 Major Flaws in the Fed’s Economic Model – James Rickards
The U.S. dollar is the dominant global reserve currency. All markets, including stocks, bonds, commodities, and foreign exchange are affected by the value of the dollar. The value of the dollar, in effect, its “price” is determined by interest rates. When the Federal Reserve manipulates interest rates, it is manipulating, and therefore distorting, every market in the world. The Fed may have [...]