Monday, Sept 28th, 2009
On Friday CNBC broadcast a remarkable six-minute interview with Jim Rickards, director of market intelligence for McLean, Virginia-based consulting firm Omnis.
Rickards was asked to analyze an essay published in Friday’s Wall Street Journal by Fed Governor Kevin M. Warsh (yes, the Fed governor who this month acknowledged to GATA that the Fed is concealing records of its gold swap arrangements with foreign banks). That essay can be found here:
Rickards construed Warsh’s essay to mean that the Fed will be seeking to regulate the gold price closely even as the Fed needs to devalue the dollar by about half over the next 14 years to restore solvency to the United States.
The purpose of the Fed, Rickards remarked, is to inflate the dollar to prop up the banks; claims that the Fed’s purpose is to achieve “price stability” are manifestly nonsense. Central bankers, he added, now plan to turn the International Monetary Fund’s Special Drawing Rights into the new world reserve currency replacing the dollar, a new round of money printing to create some stability in the world financial system during the dollar’s steady but gradual and controlled devaluation.
Rickards said he expects gold to go to $2,000 but added, “When you own gold you’re fighting every central bank in the world.”
This article was posted: Monday, September 28, 2009 at 3:43 am