Jim Rickards: We’re Witnessing One of the Greatest Failed Experiments in Economic History
It all ends in the collapse of the dollar
by Adam Taggart
PeakProsperity.com
Saturday, September 21, 2013
Jim Rickards, author of the best-seller Currency Wars, sees the world’s central banks embroiled in a “race to debase” their currencies in order to restore — at any cost — growth to their weakened economies.
In the midst of the fight, the US Federal Reserve wields oversized power due to the dollar’s unique position as the global reserve currency. As a result, actions by the Fed create huge percussive ripples across the battlefield, often influencing events in ways little understood by the players — and especially by the Fed itself.
In Rickards’ words, the policymakers at the Fed “think they are dialing a thermostat up and down, but they’re actually playing with a nuclear reactor — and they could melt the whole thing down”:
It will play out in all markets. When I say collapse, it is a loss of confidence in paper money.
Take the Fed, for example. The Fed has printed almost $3 trillion since 2007. Now, that is without a liquidity crisis. I mean, we did have a liquidity crisis in 2008. And the first round – I would say QE1 was a legitimate central-bank response to liquidity crisis. But QE2 and QE3: we will look back over them and we will see them as enormous blunders in one of the greatest failed experiments in economic history.
With Video…HERE
