Jim Rickards, Best-Selling Author and Global Macro Expert interviews with the Power & Market Report
Jim Rickards on twitter
Many topics and concepts were covered in a deeper interview than one is normally accustom to.
Rickards states: "Gold has no real use except as money"- with which we concur here
Gold is the ultimate FIAT money. It has value because we believe it has value. But it is suited to have value because it is unused in industry and as a monetary unit its supply growth is very predictable. What could change that? Two polar opposite examples would be: If Gold were alchemically synthesized (loses value) or if it were used industrially and irrecoverably (gains value). These would undermine Gold's credibility as a stable currency. Our issue here is demoting a tangible object (currency) that represents an intangible store of value (FIAT), to an intangible currency (101101101010's) representing the same.
From the Video
- Hard Asset allocation
- Gold as Money
- Central Banking is betraying the public trust on some level- either they are so steeped in the academic way they can't get it, or they are not entirely sincere.
- Who he feels "gets it" in the banking community and who he feels is married to their ideas.
- How those who get it are genuinely trying to manage the situation, with a libertarian's perspective that despite good intentions, it is not truly possible to know what is best for others
- He describes what Nassim Taleb calls IYI crowd. Intelligent Yet Idiots- sans derision
- All money is based on confidence in the medium. And specie/ gold enjoys the least subjectivity/ influence by humans. Thus it deserves the most confidence
- A demand side definition of Commodity that we personally like
- Trade Weighted Dollar correlation with Gold
- Implications of an SDR with Gold in it based on FX cross rate volatility
- Some perspective, introspection, and frankness despite his background as being from the "IMFclub" ( in his words)
- Career background and his education as a "boot camp" for the IMF
- How he got to Gold, and that he was no Gold bug by any means
- How wealth is stolen as impetus to preserve his own wealth lead him to Gold
- His interest in Gold was well before the 2007- 2008 Crisis
- Financial Counterterrorism work with the CIA
And a lot of depth as the interviewer let him run and wasn't looking for soundbites.-Published Aug. 25th
James Rickards | What Do Central Bankers Know?
- Soren k.
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