Wednesday, January 11, 2017

Recession, market correction next year, expect rate cuts

The Federal Reserve hiked interest rates just two weeks ago for the second time in a decade, but it will soon be cutting them again, said Jim Rickards on Tuesday.

Speaking to CNBC's Squawk Box, the director of The James Rickards Project said a stock market correction is coming as President-elect Donald Trump's economic stimulus plans will not pan out, causing a "head-on collision" between perception and reality.

"When the reality of no stimulus catches up with the perception of stimulus plus the Fed tightening: that's the train wreck. Either we're going to have a recession or a stock market correction," he said.

The markets have been rallying on the back of Trump's win as investors bet on tax cuts and fiscal spending under the new administration.



However, "the stimulus is not going to come" as Trump's proposed tax cuts will hit government revenue while the Congress is likely to block his stimulus plans as the U.S. is already $20 trillion in debt, Rickards added.

This will lead to a recession or a "very severe correction" in the stock market, prompting rate cuts later next year, he said, prompting the Fed to cut rates.

"They will raise (rates) in March and then something will hit the wall, either the economy or the stock market or both. Then the Fed will backpedal from there, starting with a forward guidance then perhaps a rate cut later in the year," said Rickards, who recommends holding gold and U.S. 10-year Treasurys.

- Source, CNBC

Friday, December 30, 2016

Jim Rickards: Trump’s Stimulus Plan Not Happening

Economist Jim Rickards appeared on CNBC’s “Squawk Box” outlining his 2017 predictions for rate hikes, Trump stimulus, and the coming US recession. Rickards believes the markets are unwittingly pricing in a stimulus plan that will never materialize.

“Trump wants to cut taxes. Steve Bannon is talking to his advisors about a trillion dollars of infrastructure spending, cutting regulations. All of these things are viewed to be highly stimulative. That’s why the market is going up. Pharmaceuticals are going up on the repeal of Obamacare, banks going up on the repeal of Dodd-Frank.”

The markets and the Fed have the perception that tax cuts and spending will continue despite the realities of a fiscally conservative congress, a $20 trillion of debt and a 104% debt-to-GDP ratio.

“But here’s the point,” Rickards states, “the stimulus is not going to come… Congress has already said tax cuts have to be revenue neutral. That’s going to take away the simulative effect. They’re going to balk at more spending.”

While a March rate hike is likely, according to Rickards, the Fed will backpedal when the market corrects or when the next recession hits. “Then the Fed will backpedal from there, starting with forward guidance and perhaps a rate cut later in the year.”

In such a situation, the scramble to move assets into wealth-preserving instruments like physical gold and silver will begin again. 2016 saw this movement many times by investors looking for safe havens. If Rickards is correct in his predictions, 2017 is likely to be a repeat of the same.


Saturday, December 17, 2016

The Global Elites Secret Plan for the Next Financial Crisis


Oxford Club Radio 10.17.16 interviews Jim Rickards on his latest book: The Road to Ruin: The Global Elites’ Secret Plan for the Next Financial Crisis.


Wednesday, December 14, 2016

Discussing the Elite Agenda & Trump Victory with Jim Rickards


We're always excited to get the biggest name in alternative investing news, Mr. James G. Rickards, and this time comes most opportune with the election around the corner. Jim gives his stunning prediction for a Trump victory and subsequent unavoidable world fiat currency crisis where the elite's agenda will be to implement the IMF SDR as the new world reserve currency. Don't miss this time sensitive info and how to protect yourself (gold to $10,000!) from it!


Saturday, December 10, 2016

Monetary Tricks No Longer Work - Jim Rickards


If you hold the keys-to-the-kingdom and someone comes along and request that you share those keys what are the odds you are going to honor such a request? Let's say you posses the power, financially and militarily, to bully whoever you would like, along with the keys-to-the-kingdom. 

Why would you even entertain the idea of sharing? If you already hold all the power why would you even entertain any such idea? Odds are, not going to happen.

- Source, The Daily Coin

Saturday, December 3, 2016

They're Going To Lock Down The System


This week, seasoned financier, risk manager and author Jim Rickards returns to the program to share the predictions from his new book The Road To Ruin: The Global Elite's Secret Plan For The Next Financial Crisis.

Rickards warns of a coming confidence boundary in central bank omnipotence. Once breached, trust and belief in the central banking cartel quickly vaporizes. Rickards predicts that boundary will be crossed by 2018 or sooner; and when it is, the entire financial system will go into lockdown, freezing access to our money.


Tuesday, November 29, 2016

Jim Rickards: How to make a fortune before 2018


Jim Rickards confronts the James Bond conspiracies and reveals how to make a fortune through crises, crashes, gold, stocks and a Donald Trump victory. Recorded at Sydney’s Custodian Vaults with The Capital Network’s Lelde Smits.


Saturday, November 26, 2016

Jim Rickards Describes Coming Shut Down of US Financial System

Jim Rickards,the chief global strategist at West Shore Group, appeared on Bloomberg Markets to discuss the next financial crisis. Rickards said he sees next US downturn approaching a tipping point soon. However, the Federal Reserve’s response to restoring financial solvency will be much different because there’s no place left to go with monetary policy.

“The next time, they’re not going to print the money because they’re tapped out,” he states. “They’re going to lock down the system.” In a move Rickards refers to at the “bail in, lock down” plan, large sections of the financial sector will be deactivated to avoid bank runs and complete collapse. Rickards describes some of the more likely scenarios:

“Money market funds will suspend redemptions, bank ATMs can be reprogrammed to give you $300 per day for gas and groceries; they can selectively shut down the banks. We saw it in Greece. We saw it in Cyprus; we’re seeing it today in India. The banks are closing. They’re out of cash.”

- Source, Schiff Gold