In part two of Jim Rickards’ discussion with our Daniela Cambone, the NYT best-selling author said, “inflation can go a lot higher,” because the Fed cannot do anything about supply shortages ranging from food to oil. Real wages are, “negative, they’re going down,” and with rising inflation, people will not spend money elsewhere which can slow the economy further, he asserts. If the Fed continues down its projected path of rate hikes, “then they will cause a recession, it will absolutely happen,” Rickards predicts. He paints a grim picture of the coming digital dollar that can be seen as a, “totalitarian mechanism,” comparing the new technology to a full surveillance state which is already being played out in China. “Bitcoin is part of a larger digital environment that has erased the concept of money,” Rickards concludes, saying we are in a current state of “moneyness,” due to the definition of money being unknown.
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00:00 Demand-pull inflation v.s. cost-push inflation
5:25 The link between money supply and inflation
7:26 Has inflation reached its peak?
10:11 Will the Fed be able to orchestrate a soft landing?
12:19 Can a recession happen?
13:54 The prediction of a stock market crash
14:50 Can digital dollar ensure privacy?
17:00 The outlook for cryptocurrency
33 Comments
Digital dollar means complete government control of whatever you buy and will punish you if you don't follow THEIR rules in what you buy. Your only other option will be a black market. EFF them!!!
We actually do know what money is. Its gold and silver you bum
Jim Rickards is a world class thinker with such a wide range of competencies that we would be making a huge mistake to disregard his insights. Jim talks I listen.
awesome video!!!
As Jim said, he is not entitled to his own facts. The fact of the matter is that the CPI went from 3.18% in October 1972 up to 7.36% in September 1973, and the oil embargo crisis did not start until October 1973. Thus, Jim Rickards is inventing his own facts.
👍
Jim Rickards very great conversationalist — like his style. Well covered Stansberry
Gold crashed so………
fungible & tangible
Anybody that would predict what a price will be is a complete idiot.
USDC being private doesn’t mean it’s not surveilled
Heard it all before. Gold is already back down
Oh my, Jim is in wonderland, he is still out.
Good ole Jim always makes sure to let everyone know how many degrees he has. Humble braggert.
Jim was dead wrong on inflation and instead of saying "yea, I was wrong" and leaving it at that he goes into a long winded balderdash to make it sound as if he was still somewhat right. Someone tell him that he is not speaking to a group of 5th graders.
Instant like for stanberry and jim rickards talks
It was a bright cold day in April, and the clocks were striking thirteen.
The thirteenth stroke here doesn't refer to military time but to an old saying. References to a thirteenth stroke of the clock indicate that some event or discovery calls into question everything previously believed
-George Orwell
Very good video! I believe our economic system has become corrupted beyond repair if you ask me. There has been so adjustments to the economy through new tools in statistics that I believe in some ways we are over complicating matters and in other ways we are making things too simple. I believe the greatest goal in an economy should be sustainability, not just through statistics but through real results everyone can see and not just be told " These are the statistics" while the reality says something completely different.
Increasing real money in the economy doesn’t just come from commercial banks but also government deficit spending. Through treasury purchases (with printed money) the fed can inject money straight into the economy as the government spends it directly or puts it back into their own pockets. How is that not inflationary?
7:08 No, velocity has not crashed. Only the proxy variable used to estimate velocity has crashed, and that's only because the proxy for money supply (M2) is no longer useful when so much of it has gone into the financial markets rather than the real economy.
MV=PY is an accounting identity which cannot be wrong, only the proxy variables used to estimate these variables can be wrong – it's an important distinction with important implications that Jim is missing.
There’s one source of inflation…the federal reserve and collusion with governments to spend the cash into circulation. If they actually shrink their holdings of bonds, bye bye the last 20 years of the planned economy!
Something I cannot understand is how come QE doesn't affect the economy because money does not enter to it but QT crashes the economy.
I mean if you say expanding the balance sheet only increase excess reserve deposits then reducing your balance sheet should reduce them.
This is old… 2,0000
Oz
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Jim needs to refresh a read of Hazlitt's book. The Fed's QE increases bank reserves but it very much impacts the economy by permitting the Treasury to deficit spend.
Jim is a smart guy BUT he is totally wrong about velocity of money. If the system has say 1 trillion dollars moving around in it and velocity M2 is 2 that means there is 2 trillion in a 1 year period being spent for goods and services. BUT “and here is where Jim misses the boat” if the system has 50 trillion and velocity M2 drops to 1 that means there is 50 trillion in a 1 year period being spent for goods and services “and this IS WHAT CAUSES INFLATION”. { the FED adding to the money supply } Ask Jim about this the next time you have him on your show !!!!
Jim has lost the plot and not in touch with reality, perhaps it’s time to listen to the others rather than trying to outsmart them with outlandish ideas
Jim pretending he understands bitcoin.
Demand pull, cost push…BS! Inflation is an expansion of the currency supply (always and everywhere a monetary phenomena caused by the Fed). Higher prices are a potential consequence.
excellent once again
What! This bs, what are you talking about. 2000 shitty dollars.. how you working that out then? You must be on another planet to me.
Moniness, an amazing concept.
Fiat currency always unravels, and in many ways. Government, or too much government, is always irresponsible, and always unravels when power becomes too concentrated. All organizations, when they get too big, overly concentrate power, out of necessity. Trying to untangle the messes that we see in every direction are ineffective without correcting the root cause of unmanageable overly-vertical organizational structures. All of these interviews, analyses, and suggested corrections are way too superficial, distracting, and are allowing the core dynamic that is our Forth Turning to result in too much destruction. It's time for creation.