James Rickards: Global Monetary System Headed for Collapse

Money News

The world currency system is riding down the road to catastrophe, says James Rickards, senior managing director of Tangent Capital Partners.

The world already has entered a currency war that began in 2010 on the heels of the Federal Reserve’s massive easing program, he tells Wall Street Journal Digital Network. Since then, plenty of nations have joined in, including Brazil, Switzerland and Japan, says Rickards, author of “Currency Wars: The Making of the Next Global Crises.”

“All major central banks are easing,” he says. “Eventually so much money will be printed that this will lead to inflation. The endgame is collapse of the international monetary system — sometime sooner than later.”

In both the United States and Japan, the central banks are trying to “import inflation” to get their economies going, rather than trying to boost exports, through a weaker currency, Rickards says. “They’re scared to death of deflation. They’ve cut rates, and the last resort is to cheapen their currencies.”

When the international monetary system collapses, major financial powers will convene to plan the aftermath, he says. When that happens, each nation must have enough gold relative to its gross domestic product.

“China needs to get to 4,000 to 5,000 tons to look the United States in the eye and be an equal country,” Rickards notes.

The global economy can muddle through this year, but major problems begin in 2014, he maintains.

“The biggest risk is the rapid collapse of confidence in paper money. They can’t just keep printing. Then gold really comes to fore, whether it’s a gold standard or … gold as a reference price.”

So what do ATS members think of this ominous and dramatic forecast on the global monetary system?

A few points he notes to support his call are the emerging currency wars, endless money printing from central banks around the world, gold acquisitions and repatriation by various countries as indications that central banks and governments are losing confidence in paper money.

It's not like the world is seeing much in the way of any meaningful economic growth despite all these monetary and stimulus measures in place, and have been since the GFC. There also seems to be some bubbles forming in parts of the world and inflation concerns returning to China.

Well its good that more guys like him are finally admitting the obvious that Ron Paul, Peter Schiff, Gerald Celente, And Jim Rodgers among a few others have been warning about for the last several years...

reply to post by surrealist


Much of this boils down to greed and control. We are in a state of decline, much the same as other empires. We have learned alot from them but become complacent. We allow the media to influence the way we think and act. The financiers manipulate the money and the government. We are doomed yet many follow blindly like lemmings towards the brink.



Then theres this (just started another thread on it)

i am using the current downturn in Silver/gold/PM to get 1 oz. Eagles and Maples


anyone else hoarding coins (arguably the best way to retain wealth that will be liquid as TSHTF)

i need to know if the 1/2 oz and 1/10th oz "Maple Leaf"s ( gold) are a worthwhile PM asset to have on hand down here in the States...

i do not see a great deal of convience to hauling a sack of 'junk' pre '65 coins (with silver) around for the period of the dollar collapse


PM me if the info is too sensitive or too pivate

Somethings not right the stock market is riding high yet it's not reflecting whats going on around us. Everyone I know is stuggling to get by. Prices have sky rocketed on everything yet wages haven't gone up.

I'm not too worried I'll survive no matter what comes our way. A lot people like to invest in metals or what ever. Personally I have enough gun's ammo and fishing equipment to last 10 lifetimes. I have so much wild game I can't even eat it all. I've been giving the stuff away to family and friends. I have a giant deep freezer full of meat.

I survive on less then $10k a year.