Earlier this week we wrote the below article.
It featured thoughts from a number of alternative commentators, and even Alan Greenspan, on how inflation may be just starting to poke it’s head above the parapet.
Someone else who looks to be leaning to point of view that inflation will come out on top is Jim Rickards. This week he was interviewed by Greg Hunter of USAWatchdog.
On whether we get inflation or deflation in the next leg of the financial crisis, Rickards reckons:
“You might get some deflation first, but I don’t expect that because central banks are trying so hard to cause inflation. The natural state of the world is deflation right now. . . . But governments can’t have deflation, it destroys the tax base. . . . So, you have natural deflation and policy inflation, and they are pushing together. It’s an unstable equilibrium, and at some point, it is going to snap one way or another. If it is deflationary, and I don’t expect this, the policy will be even more money printing. . . . As far as the SDR’s are concerned, it will certainly be inflationary. . . . You may not be able to save the world, but you can save yourself and family by getting into some assets that will stand this inflation and be non-digital. Any digital money can be locked down with a few key strokes. Non-digital money such as gold, silver, fine art, land, natural resources, water and there is a long list of things . . . those are the things that are going to last. . . . The other point I make is that when this happens, it will happen very quickly. . . . You won’t know it in advance, and the stock market will be closed when you decide to get out of the stock market. You may not be able to get gold. Right now, you can get it . . . but in a panic when it’s going up $100 per ounce per day, you’ll be watching the price go up, but you won’t be able to get it.”
“Where will the liquidity come from in the next liquidity crisis? The answer is the International Monetary Fund (IMF). They have a printing press. The Fed has a printing press, they can print dollars. The European Central Bank can print the euro. The IMF has a printing press, they can print special drawing rights (SDRs). It is a funny name, but just think of it as ‘world money.’ The IMF is the central bank of the world… They can print world money, and they will by the tens of trillions.”
“The central banks have been trying to get inflation for eight years. It is not a secret. They all have 2% inflation goals. None of them have come close. None of them can get the inflation goals they are aiming for. At the end of the day the SDR will be that hyperinflationary event that they have failed to get so far.”
Richards states that “The global elites have a secret plan for the next financial crisis.” He outlines how,
“They are going to lock down the system when the crisis hits. In 1998, everybody wanted their money back, and they printed the money. In 2008, everybody wanted their money back, and they printed the money. In 2018 or sooner, everyone is going to want their money back, but they are not going to print the money. They are going to tell you that can’t have it. They are going to lock down the system and close the banks. Money market funds are going to suspend redemptions. Stock exchanges are going to be closed, and they’ll say it’s ‘temporary.’ That’s what Nixon said when he closed the gold window in 1971. . . . They will do it to buy time until they can flood the market with SDR’s (Special Drawing Rights IMF currency).”
None of this seems likely currently. But then, usually what happens in times of crisis is not what everyone expects. A wave of eventual inflation certainly is unexpected, so that could be a good guess of what is to come.