Jim Rickards continues:

“Bullard says raise rates because that’s another way to manipulate people into thinking inflation is right around the corner.  Zero rates might cause people to think there is deflation, but these are all mind games between the Fed and people paying attention.

But what does that have to do with sound money?  What does that have to do with the Fed?  At least as it was constituted in 1913, which was to have a stable dollar.  It shows how far off course we are that once you start a series of manipulations there’s no end to it.

Once you run out of real bullets, like quantitive easing, you have to go to imaginary bullets in terms of manipulating expectations.  The Fed is like a magician trying to pull a rabbit out of the hat and trying to distract the audience, that’s what they are doing....

Continue reading the Jim Rickards interview below...


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“This just makes the case for gold in my opinion because you can’t manipulate gold.  There is a certain quantity, there’s a certain output every year.  We know what the reserves are.

So the Fed (is engaged) in all of these monetary exertions, mind games, it’s manipulation.  They are not trying to communicate with you honestly.  They are trying to communicate with you in such a way that they manipulate your expectations into doing something that may or may not be in your best interest.

By the way, the more the Fed does this the more we get to a point where confidence in the dollar may collapse.  It could happen very suddenly...The stage will have been set.  It’s like my metaphor of the avalanche and the snowflake.  The avalanche is waiting to happen, but it takes a certain snowflake to trigger the whole collapse of the mountainside.

What we have now is an unstable mountainside and the snowflakes are coming down and it’s probably a matter of time.  We are running the risk of a dollar collapse with a much higher probability than anyone should be comfortable with.  So this just increases the case for gold in my view.”  

In addition to consulting with government directorates around the world, Rickards also communicates regularly with members of the Fed and the Treasury so his warning of a dollar collapse should be taken very seriously. 

In this interview Rickards goes into detail about the risks of a US dollar collapse, what the central planners are up to and how this will impact gold and much more.   The outstanding KWN audio interview with Jim Rickards is available now and you can listen to it by CLICKING HERE. 

James Rickards is a Senior Managing Director of

Tangent Capital in New York and the author of

“Currency Wars: The Making of the Next Global Crisis”

Penguin/Portfolio Nov., 2011, to pre-order CLICK HERE.

© 2011 by King World News®. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.  However, linking directly to the blog page is permitted and encouraged.

Eric King

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© 2011 by King World News®. All Rights Reserved. This material may not be published, broadcast,

rewritten, or redistributed.  However, linking directly to the blog page is permitted and encouraged.

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