9/13/2023 0 Comments Aftermath book jim rickards![]() ![]() ![]() How can the Fed actually get it done? What happens if the Fed is cutting rates and the dollar won't go down? McCullough: You also have these Latin American currencies that are going down in a ball flames. ![]() So you have Draghi devaluing – who is one of the greatest currency war players of all time. But you have Trump and Powell aiding and abetting – trying devalue the currency to get asset price reflation. Inequality gaps drive people to the final stage of frustration. But that is the history and that's what I talked about in the book. We’ll win kind of, and the Chinese will be hurt more than we will, but it doesn't really solve any of the problems.Īnd then let's hope it doesn't turn into a shooting war. The trade war started in earnest about a year and a half ago when President Trump threw the tariffs on washing machines, aimed at the Chinese, and it's escalated from there to tariffs on $200 billion over the goods. So we're nine years into the currency war. And then World War II broke out at the end of the 1930s. So there was a currency war in the 20s, early thirties, then a massive trade war in the 30s. And that's what happened in the 20s, thirties and up to 1939. Trade wars don't work either – short-term effects suppress trade. When they don't work what happens is they morph into trade wars. They just don't end easily because there is no logical ending to it.Ĭurrency wars don't work. Now the journalists always act like this currency war is new. So I'm not at all surprised that here we are in 2019 and we are talking about currency wars. And I had a lot of historical examples of that. Currency wars don't happen all the time, but when they do, they can last for 15 or 20 years. The most eloquent thing that you wrote is that “None of this happens in a vacuum.” There are very few things, Jim, that were as timely and topical as this book, Currency Wars, when you wrote it in 2011. Keith McCullough: Hi I’m Keith McCullough and welcome to another edition of “Real Conversations.” This one is with one of my favorite, not only authors, but thought leaders, somebody who comes up with ideas before other people do that are actually timely, topical and over time become quite accurate. We transcribed some other key takeaways from their conversation below. That’s just one of many fascinating tidbits from this new, in-depth conversation. But then he said, ‘Maybe they think the price will go up.’ So I’ve got Larry Summers on the record saying, higher gold prices. So the question was, ‘In the last 10 years, Russia has more than tripled its gold reserves and China has more than tripled its gold reserves.’ They have a lot more off the books, but let's take the official number.Īnd he sort of thought about it for a second and he said, ‘Well, diversification.’ That's actually technically a good answer. I knew the answer, but I wanted to hear what his answer was. I was able to ask Larry Summers about that at dinner a couple of days ago. Outspoken author and investment advisor James Rickards sat down for a pro-to-pro discussion with Hedgeye CEO Keith McCullough recently. ![]()
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