Thursday, July 2, 2015

The Death of Money by James Rickards

Posted by Rebecca Brendel

Reviewed by: José Beltrán

What I ReadThe Death of Money by James Rickards

Find It @YCLD: Here!

What it’s About:  Mr. James Rickards is a seasoned financial counselor, investment banker and risk manager with over thirty years’ experience in capital markets including all aspects of portfolio management, risk management, product structure, financing, regulation and operations. Mr. Rickards' market experience is focused in alternative investing and derivatives in global markets. He is also the CIA’s Financial Threat & Asymmetric Warfare Advisor. He knows of what he speaks. Rickards warns of an imminent USA $100 trillion collapse. This Economic Alarmist takes us behind the conspiratorial scenes of current global currency wars, as only he can, he certainly has connections. Rickards says, “The US government has secretly set up a “Day After Plan” after the collapse of the dollar.” The US dollar has three strikes lined up against it. The Catastrophic triple whammy of Economic Bubbles about to burst: the Stock Market, Bond Marketand the Derivatives Market. James Rickards is also the author of Currency Wars: The Making of the Next Global Crisis,  published by Penguin/Portfolio, November 2011.

What I Thought: Rickards leaves the reader with no doubt about his worldwide financial credentials, nor his knowledge of economic theory e.g. “If (R +I) –B> [T-S] then US deficits are sustainable, Conversely if (R+I) –B <[T-S] then US deficits are not sustainable.” Rickards does not limit the scope of this book to the US, but has personal extensive experience and knowledge of the World Economic stage. Unlike the CIA World Fact Book’s dry statistical approach, Rickards minces no words. “The Russian economy is best understood as a natural resource extraction racket run by oligarchs and politicians who skim enormous amounts off the top and reinvest just enough to keep the game going.” He goes into great financial, historical detail, intelligence and analysis in his chapters on China’s New Financial Warlords, the New German Reich, and the BRICS (Brazil, Russia, India, China, South Africa) and even the BELLs(Bulgaria, Estonia (Skype), Latvia, and Lithuania).

The book includes extensive scholarly notes, internet addresses, and selected sources. All world economies from ancient times have competed for World Domination through the manipulation of their own and others currency. Ancient Rome, Argentina, and now the US, China, not to the exclusion of other countries, debase their currencies to make their products cheaper to other countries. Mark Twain said that Truth is stranger than fiction, because Fiction is obliged to stick to possibilities; Truth isn't.' The world banks are gambling with inflated paper money(debt) on the gaming tables of the World,US$200 trillion Stocks, US$100 trillion Bonds and US$693 trillion Derivatives. Please compare this US$993 trillion alone in debt to the measly paltry global GDP of only US$73.48 trillion dollars. Somehow countries managed to increase the global debt to GDP from 218 percent in 2000 to 266 percent in 2010.

Rickards goes to great lengths to show how external terrorists could set up terrorist financial cells to destroy the US market. Fake paper wealth debases real wealth. The author points out that the Debt /GDP (Gross Domestic Product) ratio of the United States is over the total worth of the country by about 101, not to worry, Japan’s Debt/GDP  is 243.2% of GDP and is still one of the 5 World Central Banks. Rickards is not a survivalist telling us to head for the hills.

This subject is deadly serious! However, Rickards offers an unrealistic laughable survival plan! US tourists have been caught abroad, when dollars were useless, they had to resort to bartering their jewelry. What average person can hold thousands of dollars in 20% gold, 20 % undeveloped land, 10% museum quality fine art paintings(Remington paintings?), 20% alternative private equity funds, and last but not least 30% cash. If dollars becomes as worthless as confederate dollars, not worth the paper they are printed on and lawlessness reigns supreme, might I recommend instead of a Frederic Sackrider Remington painting, a pump action Remington. This is a must read book for its rare glimpse into the naked truth of world economics.

Readalikes: Currency Wars: The Making of the Next Global Crisis by James Rickards

Or look this book up on NoveList!