Jim Rickards conducts a free monthly webinar (sponsored by The Physical Gold Fund) and takes questions from listeners. You can listen to the latest one here. Below is a bullet point list of the topics covered. You can read a transcript of the interview here.
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Jim Rickards, The Gold Chronicles November 2015:
*This is the weakest US recovery on record
*Given length of current economic expansion, US may already be in a recession and data has not caught up yet
*The Fed cannot pull the trigger on a rate hike because the data does not support it
*Detailed discussion of feedbackloops affecting the Federal reserve and zero interest rate
*United States is now a magnet for global deflation
*Fed still unlikely to raise rates in December
*Detailed discussion of IMF Special Drawing Right (SDR) and China’s position
*Sooner or later oil will eventually be denominated / traded in SDR’s
*SDR is backed by nothing, instead value is derived from a peg to a basket of currencies
*Chinese Yuan addition to the SDR basket expected in Sept. 2016
*London is now positioning itself as China friendly
*Indian gold monetization scheme is not likely to succeed
*Indian gold monetization scheme will allow Indian government to lease gold into the market
*Emerging market Central Banks are adding gold to reserves led by China and Russia
*China has lost $500B in reserves in 6 months supporting the Yuan
*During the next financial crisis markets and market makers will be non-liquid and if you do not have alternate forms of liquidity your wealth is at risk
*Jim’s best definition of a financial panic is “everyone wants their money back”.
*Most likely Fed will ease in 2016, and use forward guidance and currency wars as tools
*Given length of current economic expansion, US may already be in a recession and data has not caught up yet
*The Fed cannot pull the trigger on a rate hike because the data does not support it
*Detailed discussion of feedbackloops affecting the Federal reserve and zero interest rate
*United States is now a magnet for global deflation
*Fed still unlikely to raise rates in December
*Detailed discussion of IMF Special Drawing Right (SDR) and China’s position
*Sooner or later oil will eventually be denominated / traded in SDR’s
*SDR is backed by nothing, instead value is derived from a peg to a basket of currencies
*Chinese Yuan addition to the SDR basket expected in Sept. 2016
*London is now positioning itself as China friendly
*Indian gold monetization scheme is not likely to succeed
*Indian gold monetization scheme will allow Indian government to lease gold into the market
*Emerging market Central Banks are adding gold to reserves led by China and Russia
*China has lost $500B in reserves in 6 months supporting the Yuan
*During the next financial crisis markets and market makers will be non-liquid and if you do not have alternate forms of liquidity your wealth is at risk
*Jim’s best definition of a financial panic is “everyone wants their money back”.
*Most likely Fed will ease in 2016, and use forward guidance and currency wars as tools
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