Monday, March 7, 2016

Jim Rickards Latest Monthly Webinar - "This is not quite The Big One"

Jim does a free monthly webinar sponsored by Physical Gold Fund and answers questions from the host as well as webinar listeners. Below is a summary of the latest webinar which you can listen to here. Here is a link to a text of the session.

We are pleased to announce that the recording of the Gold Chronicles webinar we did with Jim Rickards on Feb. 18th is now available online.

Topics include:
*Negative Interest Rates leading to a fresh round of currency wars

*Fed on the path to raise interest rates in March and again in June

*Markets are currently assuming the Fed is not going to raise rates

*The S&P would have to be sub 1650 and the jobs report would have to come in under 100k for the Fed to not raise rates

*Still seeing consistent below trend growth

*Inconsistency in policy is causing a loss of confidence in the Fed

*Gold is currently acting like money, similar to USD, Yen, Euro

*In Jim’s new book he addresses common falacies and myths in regards to Gold

*The New Case for Gold can be pre-ordered on Amazon at

*What a move to a cashless society looks like

*May see negative interest rates in the US in 2017

Here's one question where Jim says he does not think we are about to enter another financial crisis just yet:

My question to you is simple: How near are we to a really cataclysmic breakdown in the world’s financial markets?
Jim: I’m certainly one of those who see a cataclysmic breakdown coming, but I would say not yet. I’m with John Paulson on this as I look at the landscape today.
1987 was an example of a financial panic with no recession, 1990 was an example of a recession with no financial panic, and 2008 was an example of both in which we had a very severe recession, the worst since The Great Depression, and a very severe financial panic. The point is they’re different things; they can run separately or they can run together.
While I certainly anticipate a financial calamity in the years ahead, I don’t see that happening right now. However, I do see a recession and a stock market decline, and that’s the way to reconcile a lot of what we’re hearing. So, when Paulson says we’re not facing an imminent financial crisis, I agree, but that’s not the same as saying we’re not facing a slowing economy or a recession or a declining stock market. I think we are facing all three of those things.
When an entity like the Royal Bank of Scotland sends an advisory to clients saying sell everything, they’re really commenting on the markets and the recession, not a financial catastrophe.
To expand on that, we could talk about the Fed, monetary policy, the impact on gold, and some other things. Basically, I would say we’re not facing a calamity, but we are facing recession, further declines in stock markets, and a lot of volatility in exchange markets and gold. There is a lot going on, but not quite the big one, as they say in California.

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