Excellent video on gold, Euro, US economy

[Hawkowl]

This video interview is long (41 minutes), but it contains an immense amount of information on currency valuations, debt, inflation, monetary policy and gold prices.

(I don't agree with all his policy prescriptions, but a lot of his analysis of what is going on is spot on).


"Rickards and Turk debate whether or not central banks really own the gold they claim to own, and talk about how the current currency war – with countries competing to see who can devalue their currencies the most – is a disastrous zero-sum game. They discuss the problems facing countries whose currencies are appreciating rapidly, such as Brazil and Switzerland, and what these countries might do to curb this appreciation.

They comment on the recent debt-ceiling debate and how the compromise reached, despite all the headlines, does not actually include any real cuts, including only cuts in proposed increases. Rickards mentions his four possible scenarios for the future of the international monetary system: SDR, gold, multiple reserve currencies or chaos.

They talk about the potential for hyperinflation as the US government continues to rely on debt, instead of revenue, to finance an increasing portion of its outlays. Jim Rickards sees the potential for both deflation and hyperinflation and explains that it will depend largely on the actions of the Fed, with Bernanke leaning more in the direction of more money printing."

http://www.goldmoney.com/video/rickards-turk-interview.html

[Yavin4]

1. Although I Agree with Many Statements and the Analysis That Rickards Makes in the Video,

he blames Keynesian economics as the culprit. The real culprit is that government has been borrowing money for the past 30 years and giving it to the wealthy in the form of tax cuts. In essence, we've had highly unproductive Keynesian economic policies instead of productive economic Keynesian policy.

For example, instead of spending trillions on the very wealthy, we spent it on aggressive public education so that illiteracy was wiped out. Then we'd have a much more employable and productive citizenry.

Additionally, if we didn't offshore our manufacturing and IT jobs base, we'd have the money and the revenue to finance our obligations without using so much debt, which is what the Germans do. They still make automobiles and electronics in Germany that the world wants. We have a bunch of low end service jobs that highly depend on consumer spending.

[Hawkowl]

2. I agree

Keynesianism is not the problem. Erosion of the USA's ability to generate actual stuff the world needs while distributing the proceeds fairly between workers and capital is the problem.