Jim Rickards says the fed needs to let it get bad so the economy can truly recover

July 18, 2013

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    Jul 18, 2013 18:07 PM

    Now that is how to conduct an interview. Ask questions and step back
    and give the guest the room to answer. To often, interviewers like to state
    their opinions and don’t leave enough time for the guest to reply. I know
    where you, Cory, stand so thanks for letting Jim Rickards have a majority
    of the time. Again thanks

      Jul 18, 2013 18:48 PM

      Thanks Bob. Jim was a great guest to have on. I will bring him back on the show in a couple weeks.


    Jul 18, 2013 18:13 PM

    Great interview, thanks Cory and Jim.

    Jul 18, 2013 18:24 PM

    Entire discussion based on false premise that Fed is stupid but wants to help the economy. The Fed is diabolical and loves foils like Rickards that perpetuate lies. Where is the call to abolish the Fed, arguably the most powerful criminal organization in the history of the world?

    Jul 18, 2013 18:28 PM

    Absolutly Bob, I already know the interviewers opinions, I want the opinion of the person being interviewed, THATS the reason I am interested in listening.

    Always take any opportunity to hear Mr. Rickards.
    Good interview.

    Jul 18, 2013 18:31 PM

    Wayne, you make an excellent point, maybe discussions like this one do nothing. Maybe the only topic that should be discussed is end the criminality and how that is to be achieved.
    Entirly true, the fed and banks maybe know exactly what they hope to achieve.

    Jul 18, 2013 18:52 PM

    Cory: Thank you for not only getting Jim Rickards but asking some really good questions. Well done.

    As per what Rickards said, he is correct. Jim touched on the subject about the Feds model which is truly flawed and Cory said a very good point that the fed is making the problem worse. The big problem the Fed has caused is ms-pricing of nearly everything, bonds, stocks, currencies, gold, silver and even things not related to finance. The Fed has created serious imbalances around the world in the ms-allocation of capital where wealth is created through things like derivatives at the expense of real productivity, descent paying jobs and standards of living.

      Jul 19, 2013 19:48 AM

      Thank you for your kind words Clay. I agree that the Fed has caused many assets and investments in the market to be ms-priced. Even if the Fed was to taper these inflated prices will have trouble stabilizing.


    Jul 18, 2013 18:37 PM

    Wayne, you are absolutely correct, the problem with the FED is the FED!
    Notice how whenever they show Bernanke in the media there is always the
    red, white and blue flag, what a total farce and a disgrace!

    Jul 19, 2013 19:56 AM

    Great show Cory. And many thanks to Jim for his insights into the accordion theory of the economy and why we are now stuck in a low growth economy. This site just gets better and better every week. Al must be very proud of you buddy!

      Jul 19, 2013 19:49 AM

      Thank you Bird Man. Jim was a great interview. I have learned a lot from listening to his interviews and reading his book. It was a pleasure to have him as a guest. I hope to get him back on the show soon.


    Jul 20, 2013 20:20 PM

    Al… it seems that after all these years of my publishing you in Economic Currents Magazine… that your Rotary luncheon buddy may be a little more in sync with your thinking,

      Jul 20, 2013 20:58 PM

      Please refresh my memory.


      Jul 20, 2013 20:02 PM

      You do not have to refresh my memory.

      How the hell are you doing?

      Let’s talk!

    Jul 21, 2013 21:05 AM

    the model of the depression of 1920 doesn’t hold. In 1920 the US was on the rise as a world economic power and exporter. That’s no longer true. In addition, back then vast segments of the population worked/lived on farms were self-sustaining. today most people live in cities and are not self-sustaining. That’s why there are more people on food stamps then are working [; “There are 103.4 million people currently enrolled in any one of 15 subsidized federal food assistance programs. The most people in our nation’s history”, dated 7/10/13] if Benanke had not taken action and if the Gov’t simply let the economy heal itself there probably would have been riots in the streets, as there were in Greece/England/Spain etc..
    The implications of doing nothing are not pleasant and could push us further down the rabbit hole.
    Benanke’s trying to prime-pump the economy with cheap money; hoping that the economy gains some traction. i think there’s been a structural change in the economy and it won’t work; but i don’t see that he (or the fed) have much choice.

      Jul 22, 2013 22:27 PM

      The fed has a choice. Do something or don’t do anything. Ben can pull all the levers that he would like but he will never be able to reverse the laws of economics. Or the laws of logic for that matter. Let bad assets go away. Let new ways of thinking lead the way. Keep a strong currency. Balance budgets. Short term pain. Long term growth. But, as always, the bureaucrats choose the path of least resistance, which, ironically enough, is the same path that is lined with voters getting those food stamps. As Jim said, we are now Japan, settling in for a staggering economy for at least several decades. Instead of veering away from failed Keynesian policies, the dolts keep hitting the repeat button.

        Jul 22, 2013 22:49 PM

        It is not Ben. Don’t forget his predecessor. And, don’t forget all the previous actions.

      Jul 24, 2013 24:15 PM

      Not correct. Todays USSA is the 1920’s England, China is the 1920’s USSA. Or do you not remember hearing about the Roaring 20’s. How easy it is to compare.
      Bernanke is a Financial Terrorist and has done more harm with his QE BS than Bin Laden could ever hope to do.

    Jul 21, 2013 21:06 AM

    Jim says we’re in a Japanese style low growth situation that will last a decade or more. He also says it won’t end until we have a financial crisis worse than 2008/2009. Seems to me we won’t last a decade before that crisis comes, and that it will most likely happen within 3 or 4 years. I would like to hear Jim’s thoughts on whether and how we can make it 10 years before a majot financial crisis.

    Jul 21, 2013 21:35 AM

    re “tapering,” why would the banks that own the Fed (or any central bank) ever want to decline virtually interest-free money? Would you? They will do it as long as they can get away with it, particularly as it enables them to pay no interest to savers. (the only Cabinet member to go to jail went for accepting an interest-free loan (Albert Fall in the Teapot Dome Scandal). It amounts to Grand Theft America. Those who say the massive debt (money) creation is not reflected by inflation do not realize these banks are squirreling away the money at no cost to themselves with which to pick the bones of ailing businesses, and to but commodities for their own accounts.

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