
He’s seeing the same thing I’m seeing and it certainly made an impression on me.
Here’s a link to an analysis by ZeroHedge.com of a KingWorldNews.com interview with the well-known Jim Rickards. I have to say that although I follow Mr. Rickard’s comments closely, I do believe that a second agenda appears to be emerging. I have said in previous blog posts that Mr. Rickard’s company, Omnis Inc. exhibits traits of the Central Intelligence Agency http://www.omnisinc.com/. There’s nothing particularly unusual about that. What does strike me as unusual however is Mr. Rickard’s call to exit the equity markets due to the reasons explained in the interview. It smells fishy to me.
Just how dangerous is he?
Here’s the take at TradeWithDave. There’s a plan that is well underway to introduce Special Drawing Rights as what we describe as a new B2B (business-to-business) currency that will replace the U.S. Dollar as the world’s reserve currency. It’s not like it is something that you will actually see as it will be in the background, but “in the background” is where the largest transactions occur. You can’t work this out with the Chinese unless you can drive up the price of gold to the $5,000 range per se. You can’t deliver on that unless you are able to come up with a combination of fear of the depreciation of the U.S. dollar and fear of rapidly rising gold due to a shortage in supply and increasing demand.
The crime you see now, it’s hard to even take it’s measure… it’s just all out war.
It doesn’t really take that many fearful individual investors exiting the stock market and buying gold to pull this off. Just taking it’s natural course gold would reach the $5,000 price over ten to twenty years simply based on the annual 6% dividend which the Federal Reserve pays to its owners. That central banking system creates a naturally depreciating currency anyway, just not quick enough to satisfy the needs of the Chinese to stay in the game. Therefore, the process needs to be temporarily accelerated – enter the disinformation agents.
You can’t stop what’s coming.
The powers that be don’t need everyone to exit the market, just enough to accelerate the depreciation of the dollar and the price of equities and drive up precious metals to achieve the needed parity with the Chinese. They need just enough fearful sheep to run off the cliff to reach equilibrium. T-bills create a slight kink in the plan, but I’ll expand on that in a later post. Short positions in precious metals held by the bullion banks is another issue, however volatility along the way provides for a solution to that problem.
Do you want to leave a message?
To make all this work, we actually need to shrink the economy somewhat so that the corporations which do remain are able to be highly profitable within their new leaner figures. Remember it may be the size of a corporation’s market cap that creates jobs and growth, but that has little to do with earnings per share and the value of the company’s stock. That leaves only one more issue – jobs and the election. Keep in mind that this plan satisfies the small but wealthy segment of the population which owns the equities and knows better than to let go of the means of production. Just look at today’s announcement on tax breaks on new plants and equipment. But what about the votes?
Got a loose cannon here.
There’s another plan coming out later on today that is designed to get the votes. More housing and bailout programs for the lower income and struggling slightly below middle class segment. Between the wealthy sponsoring the election and the not-so-wealthy actually pulling the levers in the voting booth, the problem is solved with one exception. What about the middle class? There’s actually no plan for the middle class except to simply shrink it into oblivion. As far as which party controls congress. Whether it’s democrats or republicans the plan goes forward just the same.
Call it.
Here’s a link to the ZeroHedge review: http://www.zerohedge.com/article/jim-rickards-tells-his-clients-get-out-stocks-and-discusses-feds-final-golden-bullet
Here’s a link to the original interview on King World News. The site is a little slow and to listen to the interview you click on the MP3 link on the left side of the page:
Part 1 Sept. 4 Link: http://www.kingworldnews.com/kingworldnews/Broadcast/Entries/2010/9/4_Jim_Rickards.html
Part 2 Sept. 6 Link: http://www.kingworldnews.com/kingworldnews/Broadcast/Entries/2010/9/7_Jim_Rickards__Part_II.html
Here are links to previous blog posts on why the United States is No Country For Young Men:
http://tradewithdave.com/?p=1539
http://tradewithdave.com/?p=1461
http://tradewithdave.com/?p=1208
Although we’re not in the business of providing financial advice here at TradeWithDave.com, here’s our personal whistleblowing to jump back in the equity pool over the past couple of weeks:
http://tradewithdave.com/?p=1917
http://tradewithdave.com/?p=1811
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