The Untruth: A Recurring Event That Occurred in the Past and Is Imminent – Jim Rickards

by | May 27, 2023 | Self Directed IRA

The Untruth: A Recurring Event That Occurred in the Past and Is Imminent – Jim Rickards




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Jim Rickards, a renowned economist and author, has a strong warning about the state of the global economy. In his book “The Death of Money,” Rickards argues that the world is on the brink of an unprecedented financial crisis. He believes that the actions taken by central banks, governments and financial institutions following the 2008 global financial crisis have only postponed the inevitable.

In the book, Rickards argues that the current monetary system is unsustainable, as it is based on fiat currencies (currencies not backed by gold or any other physical asset). Instead, it relies on confidence and trust in the system to maintain its value. This, however, makes it vulnerable to market manipulation, as well as fraudulent actions by banks and financial institutions.

According to Rickards, the banking system is inherently unstable, as it operates on a “fractional reserve” basis. Banks only keep a fraction of the deposits they receive, and lend out the rest. This “leverage” amplifies gains and losses, making the system highly vulnerable to shocks. In addition, financial institutions engage in high-frequency trading, algorithmic trading, and other forms of market manipulation, which exacerbate volatility and create artificial price movements.

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The 2008 financial crisis was a wake-up call for many people, as it demonstrated the fragility of the global financial system. However, Rickards believes that the world’s leaders have failed to learn the lessons of the crisis. Instead of implementing reforms and regulation to prevent another crisis, they have simply postponed it through massive monetary stimulus programs, quantitative easing, and low-interest rates.

Rickards believes that the next crisis will not be confined to the financial sector, but will impact the entire global economy. He warns that it could lead to a collapse in the global trading system, a breakdown in international relations, and even the possibility of war.

In conclusion, Jim Rickards’ book “The Death of Money” is a sobering reminder of the inherent fragility of the global financial system. He argues that the actions taken by central banks, governments and financial institutions following the 2008 crisis have only postponed the inevitable. Rickards believes that the next crisis will be even worse than the last, and that we must take meaningful action to prevent it from happening.

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