Bloomberg TV: I wonder, Jim, how you… First your reaction to that statement that the economy is stable… at least relatively. Are you encouraged by, for example, the jobs numbers that we saw last week?
Jim Rickards: No, not at all. Look… Labor force participation is going down. What Janet Yellen is looking at is real wages. Forget about the unemployment rate, that’s almost an artifact at this point because labor force participation is declining. She’s concerned about inflation. She wants to have easy money, to create jobs until she’s right about inflation. What is she looking at? She’s looking at real wages. When real wages go up that means people can get a raise. When people start to get a raise that’s when inflation alarms start to go up.
Real wages are flat to down. They’re actually down, lately. So she’s not concerned at all. She’s got so much slack because of the labor force participation. Real wages are going nowhere. She has no inflation concerns at all. That means… I don’t see them raising rates in 2015.
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