Rickards Interview-When the System Collapses,It'll All Be About the Au

[House]

King of half-assed mulletscurrency related matters joins BMT for a 20min audio interview here

It was a fascinating conversation, as James indicated that the U.S. Fed is manipulating every market in the world in an attempt to abort the country's first depression since the 1930s. As a consequence, he notes that emerging countries are abandoning paper currencies in favor of physical gold, in anticipation of a collapse in the international monetary system.
Speaking towards the recent non-tapering and continued Fed stimulus, James explained that, "The Feds are inflating the [stock] bubble as they did in the late-90s, and as they did in the mid-2000s with money printing and monetary easing[it's] just money printing. It's another bubble that will end badly, but the thing with bubbles is they can go on a lot longer than you expect. I mean it could go on well into next year before correcting."
Many Western money managers believe the rising stock market is an indication of economic recovery James notes, "[But] most of them don't understand what's going on in the economy. They're using the wrong models. Everyone is using cyclical modelsexpecting some kind of robust recoverythey've been wrong every single time, [and] the reason is that we're not in a cyclical recoveryWe're in a depression. We are in a depression for the first time since the 1930s[So] if you're curious and you want to know what a depression feels like, it feels like this because we're in one."
"The problem with a depression," James continued, "is that it's not a business cycle. It's a different [economic] condition and so cyclical remedies such as monetary easing don't workYou need a structural remedy and that means changes in tax laws, labor mobility, regulatory policy, fiscal policy etcI don't see any resolution of the structural issues on the table and therefore I would expect that this depression will continue indefinitely."
The Fed's money-printing approach to solving the problem has resulted in a financial 'backhanding' of emerging markets and currencies James explains, in that, "Emerging markets [keep] most of their reserves denominated in dollarsand the Fed is manipulating the dollar, manipulating interest rates, manipulating exchange ratesmanipulating every market in the world[So] the Fed is like a drunk driver running over pedestrians and then blaming the pedestrians for being in the wayThings could easily spin out of control because of the Fed's lack of understanding of how the emerging markets are really reacting to and dependent upon the Fed manipulation."
In response to the continued Fed mismanagement and growing world currency war, it's becoming clear according to Jim, that, "[Countries] want physical custody of gold[they're] positioning for the day when there's a massive loss of confidence in paper moneyYou're seeing it with massive acquisitions of gold by Russia and China taking place through channels that bypass the London Bullion Market AssociationThey're buying mines in Western Australia. They're having the ore refined right there in Australia at the Perth Mint, and then shipping the gold straight to Shanghai. They're completely bypassing the London market where they minimize their market impact, which is a smart move. That's what you would do if you were trying to buy gold and not run up the price. You would do everything in secret and that's what's going on."
While many still question the validity of gold, Jim notes that, "When the international monetary system collapses and it comes time to rewrite the rules of the game and create a new system[it's] going to be [all about] how much gold you have. So it's not surprising that everyone is trying to get their hands on as much gold as possible."

 

[rbaggio]

Thanks for posting.

I thought this bit of the interview was pretty interesting:

You're seeing it with massive acquisitions of gold by Russia and China taking place through channels that bypass the London Bullion Market AssociationThey're buying mines in Western Australia. They're having the ore refined right there in Australia at the Perth Mint, and then shipping the gold straight to Shanghai. They're completely bypassing the London market where they minimize their market impact, which is a smart move.

 

[JulieW]

Thanks for posting.

I thought this bit of the interview was pretty interesting:

You're seeing it with massive acquisitions of gold by Russia and China taking place through channels that bypass the London Bullion Market AssociationThey're buying mines in Western Australia. They're having the ore refined right there in Australia at the Perth Mint, and then shipping the gold straight to Shanghai. They're completely bypassing the London market where they minimize their market impact, which is a smart move.

Are you able to comment on this Bron?

 

[capt.sparrow]

Thanks for posting.

I thought this bit of the interview was pretty interesting:

You're seeing it with massive acquisitions of gold by Russia and China taking place through channels that bypass the London Bullion Market AssociationThey're buying mines in Western Australia. They're having the ore refined right there in Australia at the Perth Mint, and then shipping the gold straight to Shanghai. They're completely bypassing the London market where they minimize their market impact, which is a smart move.

Are you able allowed to comment on this Bron?

 

[taz]

Thanks for posting.

I thought this bit of the interview was pretty interesting:

You're seeing it with massive acquisitions of gold by Russia and China taking place through channels that bypass the London Bullion Market AssociationThey're buying mines in Western Australia. They're having the ore refined right there in Australia at the Perth Mint, and then shipping the gold straight to Shanghai. They're completely bypassing the London market where they minimize their market impact, which is a smart move.

Are you able to comment on this Bron?

I know the Chinese have bought one one gold miner, Tanami Gold. Their operations were high cost & the board shut the operations down and are now on care & maintenance.

Waiting for the right time to open back up I suppose??

 

[mmissinglink]

What if the system doesn't collapse? What if the mess they got us into is managed in a way we didn't think it would or could be and the system maintains for a very, very long time....a couple more centuries?

Some are waiting for their silver to become their own personal Jesus Christ...to save them in a collapse....what if that collapse never happens and your personal Jesus Christ simply continues to be what it has been all along...a physical commodity with fluctuating value?

 

[Stark]

Yeah, just yesterday I've read that inflation in US (supposedly) actually lowered... There are many theories. It's similar as with religion. But it can blind you...

 

[trew]

What if the system doesn't collapse? What if the mess they got us into is managed in a way we didn't think it would or could be and the system maintains for a very, very long time....a couple more centuries?

The only thing that is 100% certain is that the US debt cannot continue growing by a trillion dollars a year into infinity.

When it stops and how it stops is anybody's guess.
Could be drastic - could be gradual.
They US govt might even get their finances in order (stranger things have happened).


The Pound Sterling has been gradually falling in importance for over 100 years.

 

[rbaggio]

Thanks for posting.

I thought this bit of the interview was pretty interesting:

You're seeing it with massive acquisitions of gold by Russia and China taking place through channels that bypass the London Bullion Market AssociationThey're buying mines in Western Australia. They're having the ore refined right there in Australia at the Perth Mint, and then shipping the gold straight to Shanghai. They're completely bypassing the London market where they minimize their market impact, which is a smart move.

Are you able to comment on this Bron?

bump

 

[bron suchecki]

Missed this originally. Feel free to PM me if I don't respond to a post/question.

Have responded here http://www.perthmintbullion.com/blo...iously_Acquiring_Gold_Via_The_Perth_Mint.aspx

 

[Silver Pauper]

Thanks, Bron... just goes to show how much disinformation and propaganda is being purported by the gold and silver soothsayers... it never seems to end and only reinforces that one must never accept facts at face value.

 

[grinners]

Bron, nice reply.

One question - The chart you posted about growing Chinese imports, did you not address this and state that it was in large part due to round-trips from Hong Kong to the mainland?