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Jim Rickards - Race Between Gold & New Paper Currency
With the currency wars heating up, King World News interviewed Jim Rickards to get his thoughts on the situation. Jim’s clients include private investment funds, investment banks and government directorates in national security and defense, and he is also an advisor to the Committee on Foreign Investment in the United States and Support Group of the Director of National Intelligence.
October 11, 2010
Jim Rickards:
“What is a currency war? What they mean is each currency is trying to devalue against all of the others. They all want to devalue but they can’t, it is a zero sum game. Some people can devalue some of the time, but not everyone can devalue all of the time.”
“What is the solution? The solution is to identify a store of value that everyone can devalue against all at once. And there are two obvious candidates. First is gold, and second it is to invent a currency.”
“The preference of central banks is to invent a currency such as the SDR or the Bancor. But, the market’s preference seems to be for gold. So the currency war comes down to a race between gold and the new paper currency. Who will win?”
Central planners are using the currency crisis as an opportunity to move forward with a renewed push for a global currency. As I said yesterday, as the currency wars escalate, it is wise for individuals to have a presence outside of the system by owning gold. The entire King World News interview with Jim Rickards will be available later in the week.
Eric King
