The following is a summary of our recent interview with Jim Rickards, which can be listened to on our site here or on iTunes here.
Global authorities are already planning for the next major crisis and, depending on its severity, are likely to respond with bail-ins, confiscations of wealth, and a new global currency backed by the IMF, says Jim Rickards in his new book, The Road to Ruin: The Global Elite’s Secret Plan for the Next Financial Crisis.
In a recent 40-minute interview with Financial Sense Newshour, Rickards explained many of the key ideas presented in The Road to Ruin including his thoughts on when the next crisis may hit.
The IMF Will Step In
The next crisis will be the third since 1998, Rickards noted. In 1998, Wall Street bailed out a hedge fund. In 2008, central banks were forced to bail out Wall Street.
“In 2018, if not sooner, who’s going to bail out the central banks?” he said.
Enter the International Monetary Fund.
The IMF is only levered 3-to-1, he said, while the Federal Reserve is levered 103-to-1. The IMF can print money, known as Special Drawing Rights, and that’s what Rickards expects will happen in the next major downturn.
End of the Dollar, Beginning of World Government
“That’s going to mark the end of the dollar as the benchmark global reserve currency,” he said. “From then on, it will be the SDR.”
He sees this blueprint clearly in the IMF’s discussion of Global Systemically Important Financial Institutions, or G-SIFIs.
“These banks are officially too big to fail,” he said. “This was all done by the G20 … and the G20 has evolved into a de facto board of directors for the world.″
Operating through institutions such as the IMF, the United Nations, the Organization For Economic Cooperation and Development, the G20 is pursuing an agenda of world money, which is the SDR, along with world taxation, world regulation, and ultimately a de facto world government, Rickards stated.
“I know that sounds like some deep, dark black helicopter conspiracy, but it’s all in (my) book with references.”
Bail-Ins Are Coming
Rickards sees the next step clearly laid out in the G20’s final communiqué from the Brisbane Summit in Australia.
“If you read it, you’ll find the blueprint,” he said. “It’s right there. What they’re going to do in the next financial crisis when these G-SIFIs, these global too-big-to-fail banks are under stress … they’re not going to get bailed out with taxpayer money because the leaders know that’s too unpopular. There’s going to be a bail-in.”
We’ll see financial institutions taken over, and losses will be apportioned between depositors, stockholders and bondholders.
And that’s if all goes well, he noted. Then again, Rickards suspects the next crisis will be bigger than the last, leading authorities to close banks, exchanges, and, essentially, “lock down the system.”
Click here to purchase a copy of his most recent book on Amazon.
Click here to listen to his recent interview with Financial Sense Newshour.
To learn more about James Rickards, click here to visit his website.
