This is not about scare tactics but it is to create awareness of what is currently going on in the USA and how we can be warned and prepared for such an emergency.
Jim Rickards states “we are currently in a depression”.
We have soup kitchens in America today Currently 50 million Americans are on food stamps.
The distress in the market place is currently hidden with the unemployment rate currently at 23%.
Jim believes the Federal Reserve and the Treasury are the greatest threat to the American national security, not the terrorists activities, but at home in the people we are trusting to do the right thing.
This group of people are destroying the USD by printing money and it is just a matter of time before it collapses.
Jim has warned the senate that by money printing, credit creation and reckless monetary policy by the Fed we are making a complex system bigger.
The risk doesn’t go up a little it goes up exponentially. The risk is unimaginable at this time.
The collapse hasn’t happened yet but the forces are building up and it’s just about to snap.
Jim believes to get us to try and spend we are bombarded with marketing and advertising about the economic prospects.
But printing all the money they want, if people aren’t borrowing it and spending it then the economy is collapsing.
Jim gives a great example of a person goes out to dinner the waiter is given a tip and takes a taxi home, the taxi driver uses the fare to buys fuel for the cab his dollar has now created a velocity of 3.
But what would happen if he decided to stay at home and not to go out for dinner. That money now has a velocity of zero.
Our velocity of money is plummeting to great depression levels.
There is a striking resemblance of what happened in 1929 to what is currently happening in the USA today the velocity of money is worse now than in 1929.
It doesn’t matter how much money the fed prints we are heading for a crash. Keep watching this space as we continue this interview by Steve Meyers and the Money Morning team with Jim Rickards author of the book “The Death of Money”