Who Bails Out Central Banks in Coming Chaos –James Rickards

By Greg Hunter’s USAWatchdog.com

(This in-depth interview (more than 1 hour) will take the place of the Weekly News Wrap-Up and the Early Sunday Release.)

Best-selling financial author James Rickards says “We are still in the aftermath of the 2008 – 2009 financial crisis.” In the up-coming book titled “Aftermath: Seven Secrets of Wealth Preservation in the Coming Chaos,” the crisis of the Great Recession may be over, but “nothing is fixed.” Rickards explains, “I understand the economy has been expanding for 10 years, and we are not in a liquidity crisis at the moment and unemployment is low. We have come a long way from that. The fundamental problems that gave rise to that have not been solved. . . . So, unlimited guarantees, unlimited money printing and unlimited currency swaps and, yeah, they truncated the crisis, but all that happened was the bad debts, the leverage and the problems were now lifted up to the central bank level. You’ve got this progression. First, it is the hedge fund. Then, it’s Wall Street. Now, it’s the central banks. Who is going to bail out the central banks? That problem has not been solved, and it’s still on the table.”

Rickards says don’t think the Federal Reserve is going to come in and ride to the rescue in what Rickards is predicting to be a “coming chaos.” Rickards contends, “Interest rates are 2.25%, but that is not what you need to get out of a recession. I am not predicting one, but if the U.S. economy went into a recession . . . history in economics says you need to cut interest rates 4% to 5% to get the U.S. out of a recession. How do you cut interest rates 4% when you are at 2.25%? You can’t because there is not enough room. You get to 0% pretty quickly, and now what do you do? You are still in a recession and you go to QE4 (money printing), but how do you do that when the Fed balance sheet is at $4 trillion. You are at a boundary. You are at a confidence limit. So, the Fed is not ready for the next recession, and they can’t get there.”

Rickards is not seeing a recession anytime soon. In fact, he is not forecasting a recession until after the 2020 Presidential Election. What does that mean for the chances of a second Trump Presidency? Rickards says, “If you put recession odds at 35%, and that is probably high, then the inverse of 65% is his probability of winning. . . . Every month that goes by, the odds of a recession by next summer go down. So, the odds of Trump winning go up. . . . I don’t want to debate the economics of the Fed and what they are doing, but the Fed is doing what it needs to do to avoid a recession, and that improves Trump’s odds. Right now, I have Trump as the winner.”

After the 2020 Presidential Election, Rickards is much less optimistic and so are the wealthy elite.  Rickards says, “The rich are building bunkers. Entrepreneurs are actually buying abandoned missile siloes with armed guards and steel doors. . . . Here’s another interesting thing, hedge fund billionaires may trade stocks, bonds and currencies all day long, but when you ask them where do you have your own money, every one of them that I have spoken to have gold, physical gold. . . . They all have gold. They don’t trade it, but they have it.”

Rickards covers a lot of ground in this in-depth interview that is more than one hour in length. Rickards talks about the new gold (and silver) bull market, what everybody, especially the small investors, needs to buy now, and talks about a gold price that is exponentially higher than today’s price. Rickards discusses the world’s massive debt, probability of big defaults and huge inflation all coming in the “Aftermath” of the coming crisis. Rickards also tells people what they can do to protect themselves.”

Join Greg Hunter as he goes One-on-One with James Rickards, multiple best-selling author of a new book titled “Aftermath: Seven Secrets of Wealth Preservation in the Coming Chaos.”

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After the Interview: 

To buy a copy of “Aftermath: Seven Secrets of Wealth Preservation in the Coming Chaos” click here.  The book will be in bookstores on July 23.

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Comments
  1. Anthony Australia

    Bang! He is in Australia soon , can’t wait.

    Ride the wave Greg, taking you away form denial and to an honest reality.

    Thank you.

    • Rob

      Here is the honest reality we are headed for through the next decade in which the tribulation will occur concurrently:

      https://stevenguinness2.wordpress.com/2019/04/04/bis-general-manager-outlines-vision-for-central-bank-digital-currencies/

      Prepare accordingly:

      https://sumofthyword.com/2016/10/04/the-rapture-of-the-church-is-after-the-tribulation/

      • Galaxy 500

        BIS doesn’t have the power to do what he saying.
        But what I find most disturbing is you predicting the time of Jesus’ return. How do you have the time frame figured? I ask because EVEN THE SON OF GOD doesn’t know and yet you do.
        Wow, I have how you know and Jesus doesn’t ?

        • Rob

          Good morning Galaxy!

          Jesus told us to watch for we know not the day or hour:

          Matthew 25:13 Watch therefore, for ye know not the day nor the hour.

          But we were clearly warned that the day of the Lord which is a year long and AFTER the tribulation would not overtake those watching:

          1 Thessalonians 5:1-4 But concerning the times and the seasons, brethren, ye have no need that aught be written unto you. (2) For yourselves know perfectly that the day of the Lord so cometh as a thief in the night. (3) When they are saying, Peace and safety, then sudden destruction cometh upon them, as travail upon a woman with child; and they shall in no wise escape. (4) But ye, brethren, are not in darkness, that that day should overtake you as a thief:

          It was not until AFTER Jesus ascended that our Father revealed to Him the Revelation that He then gave to us that help us understand the mystery:

          Revelation 1:1-3 The Revelation of Jesus Christ, which God gave him to show unto his servants, even the things which must shortly come to pass: and he sent and signified it by his angel unto his servant John; (2) who bare witness of the word of God, and of the testimony of Jesus Christ, even of all things that he saw. (3) Blessed is he that readeth, and they that hear the words of the prophecy, and keep the things that are written therein: for the time is at hand.

          While I am not trying to declare a “day or hour” it is very apparent that the “times and seasons” of our Saviors return within the next decade are are easily discernible :o)

          Please take some time to peruse my site as I think you will be blessed brother:

          https://sumofthyword.com/

          Love in CHRIST! Rob

    • AL HALL

      Greg: He is full of bull-crap!! specially when you asked about the missing $21T. Bad accounting – BS!!! I know what W told me!

      • Pablo

        Great work Greg for bringing up the Missing Trillions even though he totally had a BS answer..

        How nice, he WOULD be concerned if they were mis-spending 21 Trillion, but that’s the CATCH!! There is ZERO Congressional oversight, so no way to know if there are or not… Even “secret” weapons should be held accountable to select Congressional committees, they are supposed to be vetted for security secrets are they not?

        PS: Him being invited to an invitation only Elite event says all there is to know about this guy, a total mouth piece

        • Greg Hunter

          Pablo,
          Rickards did get some really good info out. When asking about the $21 trillion he said “I know about it.” This means the elite know about it too and are talking about it. He also asked the question “Who bails out the central banks?” This is another question the elite are thin king about and I think they have an answer. Gold and silver bailout central banks in a reset or revaluation. This was a big “read between the lines” reveal and I have to thank Rickards for this.
          Greg

          • Paul in OZ

            All of the missing 21 trillion is bad accounting, this site https://home.solari.com/dod-and-hud-missing-money-supporting-documentation/ clearly documents that fact.

            What is much harder to know is whether any or all of bad accounting contributes to more debt or if the debt is incorporated into the countries financial situation. When there is inadequate supporting documentation, proper accounting would typically result in a write-off which affects the bottom line. FASAB 56 of course makes everything impossible to ever discover anything again. The period of time was 1998-2016 and could possibly be above and beyond but IMO could also be represented in the debt of the country. Bad documentation makes it impossible to know not just one half of the dr/cr equation but both. NO matter, the 21 trillion of bad accounting is completely unacceptable and a properly running organization would add substantial internal controls to prevent further leakage of the nations resources.

          • pablo

            I know you have to walk a fine line otherwise if you beat up a guest too much they won’t ever want to come back… His reaction (at first trying to dismiss it as mere bad accounting then saying maybe its for top secret weapons) pretty much said it all. He’s an insider probably had to sign a million non disclosure agreements and the Pentagon and CIA screens every aspect of what gets written in his books. The sales of which are undoubtly the pay off for being their mouth piece.

          • SamAdamsGhost

            “ just very sloppy accounting “

            I gotta chuckle out of that one. Mr Rickards apparently still actively communicates with those in the defense & intel establishments . That said, I thought it was an excellent interview. Very informative

            • Greg Hunter

              Thank you “Sam”!! Rickards did give up one very big piece of information if you listen closely. When I was asking about the $21 trillion in “missing” money he said very low “Yeah, I know about it.” This means all his rich clients “know about it” and might be the reason they are buying physical gold and building bunkers. Rest assure, no only do the elites “know about it” but they believe it is real. We should too!! Thank you for your comment.
              Greg

      • nocte_volens

        Pay attention to how Jim answered that question. Usually he is smooth and articulate. This is the first time I have ever seen him flustered…he stumbled over his speech and his tone and body language indicates that he was giving a BS answer. I like Jim but his answer was extremely disappointing.

  2. JC

    Thanks Greg, this is the first time I’ve listened to Mr. Rickards, he explains himself clearly and concisely, and I particularly appreciated his emphasis about the importance of diversification.

    • paul ...

      JC … Richards knows the fundamental problems that have given rise to the economic nightmare we are in … have not yet been solved … and therefore he recommends buying precious metals for wealth protection … the US government needs to stop impoverishing the American people with it’s continual non-stop wars and the building of more and more tanks, planes, ships, nuclear weapons and stockpiling them at more and more military bases around the world … idiotically thinking that spending all this money on the military will “increase the national GDP” … when in fact all the spending on continual non-stop wars “is impoverishing the people” by undermining the saved wealth of Americans “through inflation of the money supply” … and putting “chains” on the CPI is a fools game trying to hide the general price increases that printing money out of thin air creates … so the US government “in an effort to boost the US economy” by spending money we don’t have on continual wars … is in fact “contracting the US economy” by destroying the American peoples purchasing power with monetary debasement … how long do these idiots in the US government think foreigners will continue to buy our “continual war debts” and cover our budget deficits?? … foreigners are buying “less” Treasuries (as our non-stop war debts continue to rise) … and lower demand for Treasuries “weakens the US dollar in addition” to all the dollars printed up to supposedly strengthen the US economy … and because the US dollar is the world’s Reserve Currency “it’s decline results in interest rates rising everywhere in the world” … thus slowing economic growth “worldwide” … forcing world central banks to artificially lower rates to zero (or negative) to try and keep their economies from slowing … so the idiotic US politicians expanding of the US money supply to fight continual non-stop wars “was a vain attempt to boost economic growth” … when simply stopping all the wars and closing our military bases around the world “would have done more to boost our economy” by keeping our budget in balance and lowering the need to print money out of thin air (that creates the inflation that makes things more expensive to buy … especially for people being artificially chained by a fake CPI) … so now we have Trump … who is boxed in a corner … he doesn’t want war “but needs war” to keep the factories producing weapons and keeping people employed (especially before an election) … he wants a strong dollar “but needs to lower its value” so our manufactures can sell their products overseas … so it looks like more war and more depreciating of the US dollar is in our future … thus the need to buy gold and silver!!

      • paul ...

        Look at the three year chart of gold (in every fiat currency in the world) and gold is making higher highs … “all” fiat currencies (every one of them) are being depreciated by their governments relative to gold … and yet the Central Banksters say “there is no inflation” … and they “need to do more QE” because there is a shortage of money in the world!! … the only person I can think of who believes these banksters is Stan!! … https://www.gold.org/goldhub/data/gold-prices

        • paul ...

          Most Americans don’t really care about gold or the banks … they have been brainwashed to believe that gold is just a useless relic and that banks are simply places to cash their retirement and work checks so they can pay their bills … whether gold is cheap or Deutsche Bank(DB) lives or dies is of little concern to most Americans … however … DB is now buckling (under a $49 trillion derivatives debt) … another “Lehman Brothers moment” is very near … the failure of Deutsche Bank will bring a global crisis for the entire financial system … as Deutsche Bank is interconnected financially to JP Morgan Chase, Citigroup, Goldman Sachs, Morgan Stanley and Bank of America as well as all the big banks in Europe … so it is time for the common people to seriously think about buying some gold or silver insurance protection … because the only solution the banksters have to try and save DB as a shell corporation … is to print even more fiat money (and lower interest rates) which will further weaken all the fiat dollars making gold and silver soar!

  3. Shane Walsh

    Paul Joseph Watson Before Selling Out

    https://www.youtube.com/watch?v=nCEHTuEGlTw

  4. David Jewett

    Interesting interview. From my perspective, Mr. Rickards has always been an establishment guy; which is to say he always puts forth the bankster/Fed position as his preferred solution. I use his perspective on the missing $21 trillion as an example, where he shrugs it off as not really missing; but also note his mention of SDRs as a means of extracting the U.S. from our forthcoming financial debacle. In my view, the IMF is a terrible way to deal with our debt.

    Nothing he said in here is new, so you’ll have to buy his book to see what solutions he recommends.

    Thanks for the interview, Greg, (I understand if you choose not to post this, since I’m rather critical of Mr. Rickards’ positions)

    • Hockey Puck

      Thanks, David, for your honesty and courage. I think you are spot on. If Rickards is rubbing shoulders with people like Tim Geithner, he would not have that preferred status if he wasn’t their spokesperson… a way for the Elite to float trial balloons. In that respect, his point of view is useful since it gives us a good idea of what the Deep State is thinking.

      Clearly their plan is to move the world towards one central bank for the whole planet. That’s a prerequisite for one-world government. Rickard’s thesis “Who will rescue the central banks?” is a clever ploy to get us all thinking this is inevitable. The big question is whether China, Russia, Iran and others will go along with this scheme to rob the whole planet of freedom. I’m sure these countries are tired of Deep State hegemony via the Fed/USD trade sanctions, something that is only effective with the USD being the global reserve currency. Are they going to want to substitute Deep State hegemony via the USD for Deep State hegemony via the IMF? I don’t know, but I sort of doubt it. The best I can see is that we’re in a bit of a stalemate at this point, and thank God for that, otherwise none of us would have any freedom.

      • SamAdamsGhost

        The world is run by counterfeiters. They counterfeit ‘legally’, because they also write the laws.
        At one point Mr Rickards asked why the Fed thinks creating inflation is desirable. That should be obvious. The counterfeiters/bankers are running a Ponzi scam. All such scams must constantly grow or they collapse relatively quickly. Like any pyramid scheme. – The SDRs are just another level to the Ponzi. Pay off old ‘debt’ denominated in counterfeit notes, with the next tier of counterfeit notes.
        Hmmmm . . . as long as people keep falling for it, the counterfeiters/bankers can do this Forever. Who knows , eventually they may issue Galactic ‘Super Special ‘ Drawing Rights (GSSDRs).

    • Jack

      Agreed, You cannot down play $ 21 trillion as some accountancy error. It seems our elites want to extend the time before it collapses since they do not have their new digital currency in place. Why would they declare Bitcoin a new legal currency while it is too volatile and next to useless in doing transactions ? No one is going to use any new currency that can fall 10 % in a day when transacting,especially large ones. They want a useless one like Bitcoin so their new fiat one will be readily accepted. Also ,what is to stop them from changing the rules once their new one is established ? Rob Kirby thinks making Bitcoin a legal currency will affect metal prices in the short term. Can they build enough confidence in their new currency before TSHTF ?

    • Gerry

      Agree David… Mr. Rickards tried to spin the 21 trillion. Sloppy accounting? I think not. Another great guest and interview Greg. Thanks for taking us to school!

    • JJ

      I agree I was listening intently right up until he said accounting error what a pack of lies. There is no one that can be as educated as this man and put out a line like that without knowing it’s a lie. BS

  5. Uncommon Sense

    I have read most of Jim rickards books. He is now saying there is little chance of a ressession until after the 2020 election. What happened to his avalanche theory and how you can’t predict which snowflake will cause the avalanche and when?

    • Jerry

      Uncommon Sense,
      I agree with you. There is no timetable using the snowflake analogy. But maybe book sales make a difference.

    • Freebrezer

      Un S- I have determined none of the experts know when the SHTF. Though there is going to be some event that will start the Avalanche! I only wish I knew who, where , and when? I have all so read a couple of his books and his advice is good … have some gold, and silver; be out of debt as much as possible; have some cash; and be able to hunker down for a few months.

    • john

      no recession when you can still lower rates – avalanche when you raise rates

    • enlightened chimp

      Avalanche , you say https://www.youtube.com/watch?v=qLrnkK2YEcE&list=RDqLr

    • JJ

      The effective reason Rickards says he is a statistician is because it lends him license to answer a question as a probability percentage, instead of straightforwardly (yes, no sir).

      So many of these experts are spiritually effete. They purport to knowing EVERYTHING, so why can they not speak definitively. Or worse, they are like atheist Clif High who purports to knowing everything and also opines on anything and everything. At least Rickards exhibits some custody of his ego, enormous though it be.

      Greg could take the advice of Jesus and tap his audience to be guests (Luke 14:21-24). There are probably a lot of outstanding men and women who are up to the task, but get overlooked because they are meek and blessed.

  6. Ronnie

    Another winner. Go the last one already paid for the new one on Apple Books.

  7. Genocidal Politician

    People that probably need to read authors such as JR never would or will
    JR providing lots of direction right now
    Amongst a number of similiar commentators and analysts

  8. Montana Guy

    Give the devil his due, globalists are clever and extremely patient. I doubt those back in 1913 had little regret in not living to see their glorious plan play out. The Fed’s job is coming to an end. Mission accomplished. Wealth first. Power second.

    The global elite have not only built bunkers, but also their next offices are in place. The question at this point is, ‘Have they done enough damage or do they need one more ‘event’?’ Trump is going nowhere until he completes the job they selected him for.

    • paul ...

      MG … You say “Trump is going nowhere” … but Trump “can go somewhere very beneficial” not only for his election chances but for our American economy “if he uses his God given brains” … all Trump simply has to do is sign an Executive Order that gives a little “interest rate forgiveness” to the American people on the “usurious interest charges” imposed upon their credit card debts by the banksters … by simply signing an EO that reduces all credit card interest rates to what the banksters pay for money (2%) … Trump can with one stroke “even the playing field a little bit” for the bankster abused American people … Americans will thus “be able to get out of debt quicker” … and hence be able to once again “spend money” (boosting the economy) … of course the bankster loan sharks in Washington would have a brain embolism if Trump even considered such an idea to help the abused American people (instead of the banking special interests) … so Trump may have to add into his EO that the banksters “lost usurious interest rate charges” will be made up by the US Government printing the money out of thin air … and simply hand it to the banksters … the same way the US Government prints money out of thin air and hands it to the Military/Industrial Complex (to produce all the tanks, planes, ships and missiles of war needed to keep the continuous non-stop wars going) … “to boost the American economy”!!

      • Galaxy 500

        You understand that was crash the system don’t you? Spoken like a true socialist. Please explain how your version of communism is better than anyone else’s. If you don’t like the rates, don’t borrow. The interest rate a person pays is based on risk, the rate of inflation and the time value of money in lower risk invests. Credit cards have fraud, bankruptcy and immense overhead.
        And Trump doesn’t have the power to do what you are saying you to start with. He isn’t King

        • Uncommon Sense

          You may be a person of (your own) facts, but investigations start with grounds for suspicion and then try to prove the case by ascertaining the facts. You have the cart before the horse.

          • Galaxy 500

            Let’s start with Facts… What’s your knowledge base? I know about credit card companies. I worked for one of the best run c/c in the world for 12 years. I know what it cost to keep one running. I know about the defaults and collections. I know about the costs of acquisition and serving.
            The Fed Reserves cost to produce bonds is negligible. If you have a 2% rate on credit cards, it doesn’t cover the losses from Fraud by itself much less the cost of operations.
            I understand where Paul is coming from. The little guy is being raped by the bank. As for as fact , which you claim I am one that makes up his own, you seem to forget how Trumps executive orders has faired so far.
            Trump doesn’t set interest. There is no Presidential power to set interest rates. Plus in my own little fact word, we call it reality, Interest rates are set by the lenders, none of which are government entities. Credit card interest rates are some of the few rates that resemble a true market.
            Back in reality, we understand that Banks are faith based entities as is our fiat currency.
            Play along for a second and let’s pretend that the Never Trumper Montana believe we are all under the thumb of the Globalist. Would have he deregulated, cut taxes and worst of all proclaimed America First and meant it?
            Or better yet, Trump Likes Paul’s plan and make a regal proclamation that after Aug 31st, any new charges on any US based credit card will be 2% (@ what? 2% a month, a year? Let’s go year). Any thing before that day is a t current rates and if you pay late, you get the default rate.
            You know what happens at midnight on August 31? Your card doesn’t work. No one in business is going to loan you money where doing so bankrupts them. It doesn’t even cover the costs of swiping the card much less fraud at double that.
            Also, most people have no idea the rate they are being charged because they are Dems and they are F’ing stupid. All they care about is instant gratification.
            So having destroyed credit cards, basically stopped credit cards, that will send a ripple through the country. Companies will start calling every load they can so they won’t be next on the list. Credit will be impaired world wide. Banks image will be damaged and some may fail due to the fallout.
            But the thing Paul misses most is Congress has the purse strings. How is he going to bail out the banks decimated by this hypothetical if Trump wrote such an EO.
            Paul says it is the same way they give money to the Military Industrial complex except it isn’t. Bill come out of Congress and get voted on.
            Color me a person who lives in the real world and even understands how some of it works.

            • Uncommon Sense

              Thanks for the lecture but my comment was referring to the Epstein situation and not credit cards.