Jim Rickards on Currency Wars - Chicago Gold and Silver Investing ...

Summary of Rickards Interview starting at 12:25.

• China and Brazil are inflating their currency. To handle that, the United States will keep inflating it's currency.
• US and Europe (minus England) has more than enough gold to be able to handle a currency war.
• The recent recession is lasting so long because of the manipulation. That is more ease, more printing. A business will not commit any capital right now because of uncertainty. We could see decades of low or sub par growth due to what he calls regine uncertainty. Businesses are not investing until they see more certainty in the market and with politicians who keep changing. They do not what will happen in taxes, with heath care costs, monetary growth. Until we see more certainty there will be either low or no growth.
• What got us out of depression (until 1946) was in 1946 when Republicans took Congress and lowered taxes. The depression last 10 years, so long.
• Current Currency Wars started in 2009 with G20. Until 2 days ago, neither Fed or Treasury admitted it publicly until recently. We are going to keep printing the dollar to prevent your currency appreciating. Bernake wants coutries to increase the value of their currency which in turn lowers the value of the dollar or suffer inflation because we are goign to keep printing until you do so. We are going to lower the exchange rate of the dollar.
• Inflation has been showing in foreign countries, but not in the US yet. It is showing up abroad more because China and Brazil are printing more. Inflation will come back to the US and Bernake wants it. They want negative real rates, they want to lower the debt by reinflating it away. They want people to spend money now thinking, people will spend due to threat of inflation.
• In a free market prices are a way of keeping allocation of capital straight. The numbers are affected in that inputs are manipulated by government. We have cheapening of the dollar in the US. The economy of Ohio is doing well because the inputs are being changed there to help political candidates in the upcoming election.

Source: http://neilski.typepad.com/chicago_gold_and_silver_i/2012/10/jim-rickards-on-currency-wars.html

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