One-on-One With Rick Ackerman

Greg Hunter’s USAWatchdog.com   

Professional trader Rick Ackerman thinks “the next market meltdown is going to look like the flash crash” of a few years ago.  Ackerman is the creator of an investment newsletter called “Rick’s Picks.”  He says the dollar is “ultimately garbage” and is backed by “nothing but debt,” but that doesn’t mean the dollar will crash in the near term.  Ackerman thinks it’s “going much higher” before it goes lower.  He thinks people need to be holding “ones, fives, tens and twenties in a shoe box” when the next crash hits.  Ackerman is a long term holder of physical gold and silver coins but says, “In a financial collapse, currency in hand would be coin of the realm,” at least for a little while.  Who knows what could cause the next calamity, but Ackerman says, “War in the Middle East would be a severe shock to the system . . . and the system is pretty fragile right now.”  Please join Greg Hunter as he goes One-on-One with Rick Ackerman. 

Comments
  1. jay cee

    Greg.
    Id like to request you have a interview with a pro in the know about copper. As a holder of several hundred pounds it would be nice to have an idea what could happen to copper in hard times.some of my questions are..Is there any changes in the laws to allow copper pennies to be sold for there copper content? What influences the copper prices,and will the influences change it in a collapse? As i see it when gold and silver rises…copper should also,but it dont work that way. Copper may someday be the poor mans gold.

    • Greg

      jay cee,
      I like silver better but your request is noted. Thank you.
      Greg

  2. al

    This guy said nothing. Typical trader. He’s in the stock market? How does he trade, certainly not technicals, they are obscured by manipulation. Bernanke’s whims so to speak. Fundamentals? Nothing makes sense, everything is propped up ready to crash, what fundamentals? Sorry. This was not one of your best interviews although your style is very refreshing Greg. Very refreshing indeed.

  3. AndyB

    Greg: good interview with Rick; you seem to be alike in that you both are pragmatic realists eschewing the standard spin, propaganda, and disinformation. As to the timing of the collapse: TPTB certainly are anticipating one, what with the dictatorial EOs coming from the WH, the constant attacks on a free internet and the 2nd Amendment, and the militarization of local police forces and the TSA, this century’s Gestapo clone. But the most disturbing news, which was not covered in the MSM, was the order (totally separate from normal military procurement channels) by the gov’t of hundreds of million rounds of high caliber ammunition. To be used against whom exactly?

    • Greg

      Thank you Andy and Art.
      Greg

  4. art barnes

    First interviewer you’ve had that suggested some paper money in hand at a collapse would be a good idea and I agree. His rational was clearly the most insightful so far. Short term after crash money will still be paper and if the banks don’t have any due to closures and should the plastic world become non-functional then small bills will serve for the basics; and, perhaps, become a little more valuable short term (120 days or so out). However, a “Flash Crash” is harder to come by after the May 2010 event as a better understanding of how a “FC” can happen was looked at and additional changes were put in place to prevent a future one. I am of the opinion that no sudden collapse will happen, just a slow slog downward malaise type jobless economy until were simply a hybrid third world country with a large military. You might even see less that 1%GDP in the near future. As the numbers increase in population without jobs to keep up a third world type economy is assured. The elite will still be rich, the media will still be “stars”, the political class will still be in charge, the bankers will still have most of the money, and the people will continue to be debt ridden poor. If the elite keep food on the table for the working poor any revolt possibility is dampened to a nil. You will continue to see a food stamp program expanding for just that reason as hungry stomach make for serious street rallies.

  5. George Too

    Greg,
    What do you think about taking on debt now before possible hyper inflation to buy capital assets if you think you can pay them off with greatly devalued dollars in the crash…not talking about fine dining or video games

    • Greg

      George Too,
      Risky move. I would shy away from most debt unless you needed to borrow. Who know how the rules will be changed in the next meltdown. One thing is for sure the rules will not be changed to help the little guy.
      Greg

  6. anonymouse

    Mr. Ackerman can’t have it both ways. If the dollar is headed for extinction, a shoebox full of small bills will be worthless.

    Fortunately, he is wrong. Don’t believe the anti-American propagandists who say the dollar is garbage, that it is backed by “nothing” — this is nonsense. The dollar is backed by the taxing power of the US gov’t, which is far from tapped out. We pay much lower taxes than other, equally prosperous industrialized nations. We pay far lower taxes than our parents and grandparents did (the top marginal rate was 90% in the ’50s). All of which indicates there’s still room to raise taxes without killing the golden goose.

    Of course, if sites such as this one ever succeed in undermining confidence (especially foreigners’ confidence) in the dollar, then they will be responsible for creating a self-fulfilling prophecy. And shame on them for toppling a system that has served Americans fairly well for 100 years.

    Put down the Kook-Aid and look around: is your standard of living higher than your grandparents’? Do you live in a larger, more comfortable house, drive a safer, more comfortable car, work in a cleaner, less debilitating job? For most Americans, the answers to this question are in the affirmative.

    The Fed is far from perfect, and there are serious fiscal and monetary issues that must be addressed, but it is not the malevolent, foreign-owned parasite that it is portrayed as by the useful idiots who propagandize for the hidden power seeking to overthrow it.

    It is not in Bernanke’s interest, or rather that of the monied groups he serves, to destroy the dollar or crash the economy. We all benefit from that fact. Contrary to the assertions of the anti-American propagandists, traditional bankers don’t want to own your house or replace the currency: REO is a expensive liability to them, while dollar-denominated loans comprise their “inventory.”

    Inflation and deflation are both bad for the banking business. That is why the Fed was created — to place control of the money supply with the group that has the greatest interest (so to speak) in monetary stability. You really want to screw things up, abolish the Fed and give its powers to Congress. (Don’t believe me? Look at what Lincoln’s greenbacks did to the economy: hyperinflation from 1863-1865, followed by 20 years of deflationary depression. Gold peaked at $165/oz. in 1865; adjusted for inflation, its price still hasn’t approached that peak.)

    IMHO, Bernanke has shown great courage in his efforts to stave off a severe depression, in the face of the baseless criticisms of political opportunists, the economically naive, and the propagandists (I’m thinking of Nazi sympathizer Eustace Mullins and his spiritual descendants) who seek to mislead us to our detriment.

    Anyone with a stake in the system (and that’s you and me, bud) should be hoping (and praying) that Bernanke succeeds and that the dollar remains the world’s indispensable currency.

    • Greg

      anonymouse,
      I think Ackerman was clearly talking about the short term when holding currency. As far as monetary stability is concerned, do you really think our money is that stable? The U.S is trillions in debt and every major country on the planet is setting up ways to bypass the buck. As far as Bernanke’s “courage” is concerned, he bailed out the banks instead of taking them to receivership. Everybody else still took the hit. If he had real “courage” and was a true capitalist the dollar would have skyrocketed in value and the U.S. credit rating would not have been downgraded. It would have been far cheaper to do the right thing in 2008, instead the Fed pumped out $16 trillion and much more when it bailed out the world. We rigged rates at Libor and allowed phony accounting (FASB 2009) at the big banks as we continue to save insolvent institutions. What happened leading up to the 2008 meltdown was nothing short of criminal fraud. We had loan application fraud in “liar loan.” The “liar loans” were packaged into “securities.” The “securities turned “toxic” but were rated AAA. Then, when it all blew up, there was perjury and forgery in the “robo-signing” scandal. This is the world you want to preserve? As far as my standard of living, anyone can look rich by putting everything on a credit card, and that’s exactly what the U.S. has been doing, especially after we shipped much of our manufacturing base overseas. You want to preserve an unsustainable system and kick the can down the road. You fail to see we are running out of road and the can is a crumpled ball. We are going to have that depression anyway. What Bernanke did was make it worse for most people and better for the very few. Next time you want to come on the site and dispute what is said here, try putting your real name on your comment. It would add at least a little to the credibility of your argument.
      Greg

      • jay cee

        Greg anonymouse seems to be one of the head in the sand rich friends i debate with in my man cave. Clearly they have to much to lose to face facts as they are. Keep up the helpfull work of reporting truth .

        • Greg

          jay cee,
          Thank you.
          Greg

      • Cam Sandilands

        Excellent summary Greg.

        When people like this come on the site with this type of commentary then you know that you are having some impact on the broader scene.

        Note how these types always attempt to discredit the facts and arguments being advanced by attacking the messenger because that is what they always resort to when they have lost the argument and can no longer adequately support their position.

        He is insinuating that:

        1. You are an “anti-American propagandists” (together with the interviewee).
        2. You are some mental defective and need to “Put down the Kook-Aid”.
        4. You are, via this site, “undermining confidence (especially foreigners’ confidence) in the dollar”.
        5. Your arguments are baseless, you are economically naive etc etc. This is the most subtle one of them all but he is lumping you in with this little gem of a comment:-
        “in the face of the baseless criticisms of political opportunists, the economically naive, and the propagandists (I’m thinking of Nazi sympathizer Eustace Mullins and his spiritual descendants) who seek to mislead us to our detriment.”

        So if all else fails in the argument we can always dredge up the Nazis to give a bit more strength to our case. Hilarious.

        What a joke this Mr. Anonymous guy is.

        I don’t think there is anyone more patriotic and concerned for his country than Greg Hunter. You only have to read his articles to see that. If Mr Hunter was apathetic about his country, and dumbed down, as Mr Anonymous and his psuedo elitist associates would clearly prefer we all were, there would be no USA WD web site. Why bother.

        Highlighting economic facts on the state of the economy and errors in economic policy is neither anti – American nor propaganda. It’s simply responsible journalism. Those who seek to label others with such terminology do so when they have few credible arguments to respond with and do so for no other reason than to attempt to silence those who speak out about critical national issues of public concern.

        Comments/claims that news sites such as this are “undermining confidence (especially foreigners’ confidence) in the dollar” is nothing short of preposterous and totally laughable. (Maybe Mr. Anonymous could have toughened it with another of his Nazi inclusions).
        Oh yes I’m sure global currency traders, bond traders, foreign central banks, national treasuries world wide, multi national corporations etc etc all check the USA WD site daily before they make decisions on their USD positions.

        The Fed, the US Treasury and the US Administration in general are doing a fine job all by themselves in undermining confidence in the USD. The rest of the world knows only too well what they are doing and hardly need to get their information or opinions from news websites.

        With respect to his comments on the Fed, Mr. Anonymous fails to comprehend that all the US public want is a truly independent Reserve Bank (not one owned by the private banks) which operates policy in the national interest and without interference by the private banks or the Government of the day.

        And finally Greg, you really must stop reporting the facts or interviewing people with differing opinions because, after all, you should just be grateful that your standard of living is better than your Grandparents.

        • Greg

          Cam,
          Your answer was much better than mine. Thank you for the analysis.
          Greg

    • art barnes

      Yep, we can tax ourselves out of this, but for the working people all their taxes are hidden now in fees, permits, drivers license, car fees, food tax, and yes, cigarettes and beer, etc. The fact is the system can survive with higher income taxes for the rich and in the end they will agree to pay it to keep the status quo or about .5% or less GDP. But after all, that is a small price to pay to stay above the fray and continue to lord it over the working poor and continue to stay on top and in control. Frankly, the malaise is already here and old Ben’s courage as you mentioned is simply a man above the law like his Wall Street Banking buddies, the political class, the elite to whom he serves. Its amazing how much courage a man can have when running out of a fox hole against blank bullets.

  7. BLT

    Gold silver cash and a vegee garden. Just like america started.

  8. Brian

    Hi Greg,

    I think a majority of this money They are creating is not and was never intended to actually be spent or loaned out into the real economy, inflation would build in cumulonimbus fashion and the illusion of value we all hold for the fiat money right now would evaporate.

    All this money they are creating is simply to act as window dressing, it is to remain “on the books” in order to keep everything “on the up and up” so to speak. I think of it as the new marble and granite pillars of the digital age, its just some architectural flourish to help all of us believe in their obnoxiously fraudulent system, because They know better than anyone around that all they have to do is get enough of us to believe in them and trust them.

    Everything They do is centered around that one simple task, keep us believing….or at least keep us distracted enough or “invested” enough into their system to go along.

    As long as a critical majority of us go along and get along things will grind, churn, squeal and grumble along…..its just that the margin of error They are running on is getting rather thin, as you have noted. War, natural disaster, even a bad hair day for some hollywood celeb can cause enough shock for enough folks to re-evaluate the situation, when that happens look out!

    • Greg

      Brian,
      Yes, I agree they are not intending for all this digital money to make it into the economy but it surly will. What bank will simply sit on the money it is given indefinitely? I also totally agree with the rest of your comment. Thank you for participation in this site!!
      Greg

  9. M SMITH

    Rick Picks is in my in box daily. You got a great interview from Rick. I read a interview from http://www.thedailybell.com this week end from Jeff Berwick. His views about the dollar & the growing police state in the U.S. & Canada only touched the surface of his work & services.

    Greg, you have been doing a great job of bringing great interviews from people on the front lines of this economic & political mess we are in. Jeff Berwick would add to that list, I hope he joins in & agrees to a interview on your site. His site is http://www.dollarvigilante.com/.

    BLT left out one thing, a good working hunting rifle & hand gun for personal protection! Thanks again becoming the number One news site for me & many others & growing!!!

    • Greg

      MSmith,
      Good Idea!! Thank you.
      Greg

    • BLT

      Sorry mate, I figured those two were a given. Lol

  10. josh

    thanks, greg. interesting interview. i think rick has a point about the utility of gold & silver in the short run. if there is a crash, no one is going to be prepared mentally or physically to use gold or silver as currency. cash will probably work the best during a bank holiday while people wrap their heads around what’s happening. if it it turns into a full societal meltdown, then people will start bartering and precious metals will come into play.

    • Greg

      Josh,
      Yes exactly and Ackerman is not alone in this view. Other analysts have said cash in small denominations will work really well for 3-6 months if there is a big crash of the system. Thank you for your comment.
      Greg

  11. David E

    Greg, it would be an improvement if you could raise the volume when you speak. A editing program like Final Cut Pro (for Macs) would allow you to adjust your volume.

    Great website! I check it daily. Thank you for your effort!

    • Greg

      Thank you David E. This is a work in progress. Thank you for your support.
      Greg

  12. john duffy

    I see one problem with holding cash. What if a bank holiday is called, and the dollar is devalued, like Roosevelt did in the thirties. You could receive a big haircut overnight!

    • Greg

      John Duffy,
      Good point. This is not a bet the farm scenario, just a hedge used as a bridge to the next new currency. But your point is well made and well taken!
      Greg

  13. NewAustrian

    anonymouse said:

    “Mr. Ackerman can’t have it both ways. If the dollar is headed for extinction, a shoebox full of small bills will be worthless.”

    Of course, he can have it both ways because hyperinflation is a highly non-linear event. Hyperinflation is really the after-effect of deflation, it is not inflation on steroids.

    I think Rick is basically alluding to the fact that a short-term severe deflation before HI is likely in which case cash in hand will do the necessary job of buying essentials.

    And secondly, anonymouse – you are completely ignoring the fact that the Fed is integral to a system that encourages moral hazard. Privatizing profits and socializing losses is not the stated goal of the Fed, but it ends up doing that anyway.

    Thirdly, one important thing to remember is that economic system is a non-linear dynamic system comprising human actors and therefore for this system to be resilient against shocks – what is needed is micro-fragility. That is, there should be disturbances and perturbations at the micro level to ensure the macro is resilient.

    Seeking macro stability (financial stability board, mark to myth accounting, too-big-to-fail guarantees, the latest being money market fund minimum balance at risk) is actually making the system less resilient to even very small shocks.

    Unfortunately, the Fed is stuck in static and linear modeling and mathematics that is completely detached from reality.

  14. Bob

    no rule of law, no money system, rule 101

    • Greg

      Thank you Bob, Joe and Russ for the comments.
      Greg

  15. Joe

    The poster who claimed we “can tax our way out of this” clearly doesn’t comprehend the real numbers…. or the trajectory of compound interest beyond a certain point/apex. It’s going to get ugly.

  16. Russ

    Greg,
    I’d like to add that coins like nickels should be considered along with cash. They are nickel and copper so have metal value, change may be hard to come by for singles and they are a small denomination so you’d only lose a few pennies if you don’t have exact change. I have a few rolls tucked away and plan on adding to that.
    Good interview as well, your questions are great and I agree with much of what Rick said.

  17. Nathan

    In case you missed it there was a miniflash crash yesterday morning on Wall St . Nothing like May 2010 but still more of that pesky algorithmic trading . Also , I would say that the Iran-Syria-Russia-China showdown with the West is more than a “wildcard” its a game changer . You have to remember that the United States and Europe were not in the dire fiscal shape during the last big War . Also our allies in Europe/UK are dealing with a meltdown and double dipper . My eyes are glued on the middleeast right now .

    • Greg

      Nathan,
      Mine too. Guess what stories are leading the Weekly News Wrap-Up?
      Greg

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