Jim Rickards gives an interview to Casey Research. Key points are below.

  • Although there was an intention to devalue the dollar(to make exports cheaper) it hasn’t happened so they will try harder.
  • US imports more than it exports so higher import costs will hurt Americans.
  • The FED wants inflation to force people into borrowing and spending by importing inflation from abroad. By 2013 a lot of inflation will show up.
  • Fed’s interest rate policy is really theft by robbing savers by handing over money
  • to the banks i.e wealth transfer or theft. Obama did promise a wealth transfer.
  • The US dollar as a percentage of other nations reserve currencies is decreasing.
  • The FED wants to scare people into spending money by trying to create inflation.
  • The losers will be those who trust the government. The winners will be those who hedge in some gold and silver. 20% would be good. Cash is good in the soft term to purchase other assets.
  • The wealthy often break it down as 1/3 gold, 1/3 land, 1/3 fine art.
  • Fine art investment funds are good for those who don’t want to pay over and above for  art.
  • Stocks will go up, but against inflation it wont be good or if it’s a bubble its risky. At least use tangible assets underlying the stock.
  • Core official inflation rate is rigged because it doesn’t include food or energy costs.