James Rickards – The Road To Ruin – PART 1/2 | London Real


let’s talk about the speed with which we are watching this market remain about 43 percent in 1998 Wall Street got together and bailed out a hedge fund in 2008 the central banks got together and bailed out Wall Street and all the banks in the world in the next crisis who’s going to bail out the central banks everything about this was corrupt the bankers got the profits not the people this is not left versus right or Republican versus Democrat this is elites versus everyday people that’s what’s going on are they trying to wreck the system no but they are wrecking the system they’re not uneducated they’re miss educated we should be descaling system punch a hole in a vessel one compartment will fill up but the vessel won’t sink break up JPMorgan into five banks or more if one of those banks fails too bad for them but the whole system doesn’t the President Bush declared a state of emergency two weeks after 9/11 for 16 years President Bush and President Obama have renewed the state of emergency America’s one phone call for martial law we can’t save the world what can we do to save our families I recommend putting 10 percent of your investable assets in physical gold and silver fascism properly understood is not a creature of the right or the left their right-wing fascists but they’re also left-wing fascist fascism is the elevation of the state [Music] [Music] [Music] this week on the show I am extremely excited to welcome the American financial expert and author of four New York Times bestselling books James Rickards his latest addition is called the road to ruin and it is the global elites secret plan for the next financial crisis and the reason I like James is because he’s been there and done that and he was part of a hedge fund called long-term capital management that I used to trade derivatives with when I was in Wall Street in the 90s and he took that fun from a billion dollars up to seven billion and then the whole thing collapsed so he’s seen what happens when in financial markets and traders go wrong he works with two or three nobel prize-winning professors a lot of PhDs but he’s seen what happens when things go wrong and now he’s got financial mart models that sometimes have been able to predict terrorist attacks he actually predicted Trump winning the presidency based on his financial models and he’s a really really smart guy he’s also good friends with our friend mr. Max Keiser of the Kaiser report and so he talks about where you should be putting your money he thinks 10% of it should be in gold and how you can protect yourself from the next financial crisis lots of great stuff here we have a really peppy phone conversation and we talk a little inside baseball when it comes to derivatives finance and what US greedy bankers are really like so I’m sure you’re going to enjoy this interview with James we inside London real Academy are now walking through all of our students through the life accelerator program and we are taking control of our mindset our diets our fitness our inner circle of relationships and we’re making 2017 our best year so you’ll see things posted there as well inside the Academy we’re going through our create and connect cycle as we speak so join into a lot of the fun you’ll see our brand new website inside and come and say hi and now I leave you with James Rickards [Music] this is London real I am Brian Rose my guest today is James Rickards the American financial expert and author of the New York Times bestselling books the death of money currency wars and the new case for gold you are an advisor for Johns Hopkins University and the US Department of Defense where you served as a facilitator for the first ever financial wargames conducted by the Pentagon your new book the road to ruin outlines the global elites secret plan for the next financial crisis James welcome to London real thank you Brian great to be with you awesome to have you here I’ve got tons of questions about the book about you but one of the things that really piqued my interest that you went through in your life was that day in 1998 when you sorted out long-term capital management and the reason I know even who that is is because in 1993 I was a derivatives trader at Bankers Trust and later I moved to the First National Bank of Chicago and I remember the emergence of long term and it was almost kind of mythical at the time because we heard of these guys that were in Connecticut I think you had Myron Scholes and Myron Scholes Nobel Prize winner was one of their partners and so like when people get to Wall Street like the options pricing model is called black Shiller shows which are oft after two professors that finally figured out how to price options after the market was doing it kind of incorrectly right for 20 years and then you guys had hired one of those people – yeah – two Nobel Prize winners right and you know it became this kind of mythical institution and it went I think as you said from a billion dollars up to four and eventually got to 7 to 7 and we gave some back and and they want to crash at the end of lost four billion and about one month but it was it was an incredible rise exactly you’re describing Brian it was just for five years we were the hottest thing out there there was no talent we couldn’t attract no money there wasn’t interested in coming in very secretive very tight-knit culture enormous success in real results when we actually did give a three billion dollar all cash dividend to our investors at the end of 1997 so we only did we tripled their money gave them two dollars back kept one and then lost 92% of the of the $1 but he still got two bucks and changed for your initial one so most most investors actually made money over the life of the front most of the money that was lost was was our money we hit little by little we had you know through our deferred compensation plans and compounding and not charging ourselves fees we had actually grown to the point where 2.6 billion of the money was our own money so was it a carrenza Schloss but it fell where should have fallen all the people who were running the fund right and like you said at the time it was this kind of mythological thing everybody wanted to do business with you yeah all the banks opened up their credit lines and everybody wanted to work for you and yeah I just remember you know knowing about it and it was this huge success and like you said you had mazing returns I think you did a lot of lot of things in the swap market a lot of liquid fixed income instruments correct that I think you guys you know really had some great trading strategies and arms so um you know I know it really well that’s her then so then I remember when it all went wrong in 98 and it just didn’t make sense because these were the guys that knew about this stuff and I believe it was the Russian crisis that made the swap spreads go really wide it caused a bit of a liquidity crisis and made things happen right that’s exactly right what’s interesting because in my new book the road to ruin I talked about this by the way there’s a whole chapter on this this is this is the first insider account that’s ever been written there have been other books written about long-term capital one and particularly came out 2000 by roger Lowenstein that’s called when genius failed an excellent book by the way and I you know talked to Roger helped him with that at the time the book came out but he interviewed he did hundreds of interviews with all the Wall Street participants but there’s never been an inside account written by somebody who’s actually there some mine is the first one and it’s one of the chapters and in the road to Rome yeah chapter 4 I think exactly and you were general counsel right and I was so I was the lawyer I did compliance and all that but you talk about these derivatives counsel I was not the trader I was not the quant I wasn’t sitting there with formulas pricing things we have plenty of people to do that including myron scholes that would co-inventor of the black-scholes formula by the way there were three professors responsible for that was Fischer black Myron Scholes and Robert Merton of Harvard yes so it might have been called black Scholes Merton but Bob was actually a very very generous guy Fischer and Myron had kind of worked out their formula but there was a really difficult challenging piece of math involving something called Ito’s calculus the branch of calculus they couldn’t quite so they went to Bob Merton solved it he said you guys publish the paper take credit for and then I’ll do another paper later on which is pretty generous of Bob to let that Fisher and Myron do that so when they worded the Nobel Prize now sadly Fischer black died and the Nobel Prize is never awarded posthumously you have to be alive so they awarded it to Merton and Shoals and Merton where the joint recipients with other Nobel prizes they were both partners of long term capital and what they did I could get and very generous they took the money they pulled it carved out a third and gave that to Fisher blacks Widow they didn’t have to do that but they felt that was the right thing to do is I always thought that was a very admirable way to handle the prize money yeah we had we had two recipients of the Nobel Prize and two of the three founders of you know that formula is at the root of all derivatives pricing because your futures are really just a form of options every everything futures forwards options or they all involve optionality like betting whether the markets going to go up or down so that formulas at the base of all of it yeah it’s such a huge formula and for many many years people were estimating it incorrectly correctly calculated it incorrectly and so I went to have my tea that’s one of the reasons I was recruited there by Bankers Trust to get a bunch of these rocket Sciences in to try to price these derivatives and I don’t know if you remember Bankers Trust back in 95 absolutely do I started biking in the 78 okay gotcha so Bankers Trust we didn’t have the pedigree we weren’t gold mere or P but it was this scrappy Bank full of a bunch of smart people that didn’t mind taking risk and put it on all sorts of fascinating to roads and I would I got on the fixed-income book in 1993 and it was the crazy thing I was 22 years old right I just passed my series seven and I got on the desk and the guy gave me a phone and he said this is the phone to Chicago where you will trades the trade futures this is a the box to the Treasury desk but and you were now trading swaps yeah and I was just like me now they’re like now and next to me sat all of the exotic option desks and they were doing time trades with our daily options and he they were at the cutting edge of some of these really you know crazy driven toaster a swap is just a leveraged bond tray without the bond correct when you buy a bond you finance it in the repo market so I buy the bond and then I pledged it to get cash that’s the repo and I use the cash to buy another bond and so on so you build up this pyramid of bonds and repos and so you’re receiving a fixed return on the bond and you’re paying a floating return on the on the repo so somebody said well why don’t I do a contract with you where I receive fix and pay floating but we’ll skip the bond yeah that’s what a swell place yeah and so was it kind of invisible but you had cash flows and you could proffer loss according to that but there was no actual bond and it was off balance sheet and today Brian as you know there are one quadrillion dollars notional derivative of swaps of the convert or the for the viewers 1 quadrillion is a thousand trillion that’s how much is out this this is a monster that’s completely out of control right and what James is really talking about this off-balance sheet property is means that it doesn’t show up anywhere and now look I traded derivatives for about five years and I broke credit derivatives here in London for ten years afterwards so like I’m a derivatives guy and I still believe well you know there’s there are some great things about derivative contracts but the problem is is that you can’t tell where they are and who belongs to what and so you can do a massive amount of leverage where the usual risk controls wouldn’t see that say long term was holding the equivalent of a trillion dollars for the bottom row and so it’s it look when used correctly they are value valuable instruments but they can also get a little out of control well I would I would just real I would say they’re a lot out of control I would say obviously derivatives were in my book I actually go through three crises so 1990 which is when we started talking about with long-term capital management 2008 I think the viewers are very familiar with that they probably lost everyone lost money in 2008 so they don’t need to be reminded of that and then those are ten years apart 98 and 2008 so I hypothesize the third crisis in 2018 so I talked about 98 2008 2018 although I make the point that it could be tomorrow that the set up is there 2018 is kind of a device to talk about the next crisis but it could be sooner or later it could be tomorrow for that matter now in 1998 Wall Street got together and bailed out a hedge fund in 2008 the central bank’s got together and bailed out Wall Street and all the banks in the world in the next crisis who’s going to bail out the central banks in others each crisis gets bigger than the one before each bailout gets bigger than the one before we are now at the point where the central banks can no longer bail out the system because they are stretched to the limit you know the others are our US Federal Reserve our central bank but this is true of central banks around the world they took their balance sheet from eight hundred billion dollars to four point two trillion dollars to bail out the crisis the last time is by the more than that that because they also did ten trillion dollars of swaps invisible swaps with the currency swaps with the European Central Bank guaranteed every bank deposit America guaranteed every money market fund in America took interest rates to zero I mean the measures were extraordinary now it did truncate the crisis they would have been a lot worse if they hadn’t done that but they haven’t normalized in other words if a is somehow in the meantime in the last eight years they got their balance sheet back down to eight hundred billion it got interest rates up to two and a half percent I’d be the first one to say nice job guys you know you saved the system you got your balance sheet back to normal nice going but that didn’t happen they’re still at four trillion interest rates are still close to zero when the next crisis comes and it could come tomorrow it could come any day they’re not going to have the capacity to deal with it because they’re stretched as far as they can now some people binos deputy Calvin Paul McCulley some of the modern monetary theorists say what’s the problem just go to a trillion or twelve trillion print as much money as you need I don’t believe that’s possible legally it is possible but politically they’ll encounter resistance they lose their independence and there’s also an invisible psychological boundary you will destroy confidence you will cross that boundary you no until it’s too late so the central banks can no longer bail out the system the only clean balance she left in the world is the International Monetary Fund they have they’re not that highly leveraged they can print money they have this world money the Special Drawing right the SDR is they give it a funny name some people wonder what it is but I just go world money because that’s what they have the assets that can allow them to bail they can take kids they can print this money but that point billers the last institution left with any kind of credit or printing power I’ll put it that way so clean balance sheet and others so the Federal Reserve can print dollars the ECB can print euros and the IMF can print these Special Drawing right now I dare say no one knows what these are and why should they this highly-specialized me I’ve met PhDs and international economics who can’t give you a straight answer as to what an SDR is but I obviously have studied it and I’ve trained in this so I’m pretty familiar with it but that that’s what they’ll do because there won’t be any other source of liquidity and then that’ll be the end of the dollar as the benchmark global reserve currency will still have dollars they’ll still be around but they’ll be like Mexican pesos you know there’s no confidence correct because it ultimately is about confidence all right salute and that’s what people need to understand and like you said the powders not dry anymore for the Federal Reserve and so as they get leopard and leopard and leopard at some point it won’t work anymore let me go to bail it is exactly right and it is this this confidence issue until everyone says wait a second this this can’t work and that’s when everything falls out you got exactly right once you lose it you can’t go back look at you get you right once confidence is fragile it’s easily lost and once you lose it you can’t get it back again it really goes back to the fundamental question Brian what is money okay so at various times and places feathers have been money clam shells have been money dollars and euros and money today gold and silver have been money I would say they still are I would say the best form of money debit cards credit cards and bitcoins money I don’t I don’t own Bitcoin I don’t recommend Bitcoin but I would say that it’s a form of money and people go what it’s not backed by anything you know the dollar is not backed by anything the euro is not backed by anything bitcoins not backed by anything I say no they’re all backed by one thing which is confidence if you and I think it’s money if you’re willing to accept it from me because you’re confident you can give it to someone else for goods and services then it’s money but what happens when the confidence goes away that’s the point yeah there’s a great book out Nanak it’s one of the bestsellers called sapiens and it just talks about all these institutions that we have faith in as people they’re just figments of our imagination whether it’s the queen or the USA or money right or Ford Motor Company and it’s a belief until it’s plainly obvious it’s not anymore right and when that happens at all the bottom falls out the emperor has no clothes I mean the classic fairy tale or children’s story but it’s exactly how things work right and now for people don’t understand if we go back at these 10-year cycles I think they’re really interesting to look at it that way in 1998 why was long-term bailed out just so people know you’ve got you know a lot of derivatives on the gun on the books you’re about to fail you’re going to lose all of your money correct now why does the federal one of the banks have to come in to bail this hedge fund to Connecticut out with all these smart rich guys that’ll probably be still be rich again right yeah and that’s the point I mean without mentioning names like let’s just say that some individual was worth 300 million dollars on paper because that was their share of long-term capital we lost 90% see now you down to 30 million not a hardship case you know you’re still worth 30 million I know it’s you write these these people were not going on welfare I like to say that if we actually had failed we were prepared to file for bankruptcy we were days away I would have just slept in the next day you know would have been Wall Street’s problem and that’s the point Wall Street did not bail us out they bailed themselves out because we owe them the 1.3 trillion dollars notional value of derivative contracts now if you’re Bear Stearns or your old firm Bankers Trust or Credit Suisse or any of the other firms that are involved so you write the contract with long-term capital management and then you write the offsetting contract with some other you know commercial hedger or some other back okay and you’re just sitting there taking a little spread you leg here I’m receiving fix and paying floating over here and I’m receiving floating and paying fixed over here and I’m making a little spread and I’ve got a lot of leverage and I’m making 20% returns on equity and so good well the minute one side goes away the minute this contract goes away which is what happens in bankruptcy you’ve got a one-sided position this is like said instead of have a spread trade your net long or short with our rows you have to go out in the market and cover that position this is what was going to happen that Wall Street collectively like all the 14 families you know after the mafia 14 days 14 families we’re going to have to go out and cover a trillion dollars of stuff you know Treasury bonds and and I’ll never forget the Sunday before the bailout so this was all happening in real time you know so I was the lawyer so I I tried it stayed up for 505 days and all this stuff negotiated this I mean there were teams of lawyers around but I was in charge of our side of the deal so before the the consortium that that’s what they call themselves came together a delegation from the Fed and the Treasury came up so as Peter Fisher from the Federal Reserve Bank in New York his deputy Dean okaasan a guy named Gary Gensler who was a assistant secretary of the Treasury at the time so treasuring the Fed come to Greenwich Connecticut they sit down John Meriwether : JM is our founder CEO – former Salomon Brothers he was the vice chairman Salomon rice in a huge name that went out there in the eighties he was he was the master of the universe he always looks about him correct he will a liars poker which is Michael Lewis’s for Michael Lewis is out a string of bestsellers but his first bestseller liars poker was about JM and this hand of liars poker you know you play that with the numbers on the the serial number on a bill that supposedly a million dollar bet between John good friend the CEO and John Meriwether the vice chairman of Psalm brothers on the trading floor that’s how that’s how the book stars but he was John Merryweather was also kind of the model for Sherman McCoy and bonfire of the vanities Tom Wolfe’s novels he was the master of the universe it really nice guy by the ways but but they get the bond trader on the floor not afraid to take risk absolutely I see but the difference was that a Salomon Brothers they were a unit within a much larger firm now the firm had to disclose their overall results but they didn’t have to break down the results of that unit so these guys get had they could lose 200 million dollars one quarter and make four hundred million dollars the next quarter and so you’re up 200 million which is pretty good but but that one quarter where they lost the 200 million nobody knew about because it got buried in these much larger results he’s balan correct the problem when they got the long term if you lost money everybody knew about it because we didn’t have any other businesses that we were in so that was that when we got to the acute stage later on that’s what that’s what happened but but the point being so it’s JM and me and two guys from the Fed and the Treasury and we sit down we didn’t ask for a bailout we we called them to let them know what was going on it was almost a good corporate citizens like this plane is going to crash we just want to warn the people on the ground that the planes crashing but but we didn’t really expect them to bail us out so let’s just tell you what’s going we just sat there we had printouts I mean the computers obviously but this was all print out we just spent a whole day going page by page we were done Peter Fisher’s face was white and Peter’s a very solid guy he’s seen it all and what’s shocked him he turned he looked this and said I knew you guys were going to destroy the bond market I didn’t know you were going to destroy the equity markets because we had five billion dollars of equity trades we were the biggest name in risk arbitrage that’s when you bet on takeovers yeah it was all guys were it was all and we were the biggest it was all in derivative form with bear stearns so bear stearns gave us what’s called a basket swap and we could just call up so you put in some citigroup sell some lockheed all the big deals of the time MCI Worldcom Citicorp travelers Boeing Lockheed all those big merger our deals in this summer of 98 we were in all of them in size but it was just a contract with Bear Stearns so Bear Stearns would go out and in that league so they would sell us you know Citigroup or whatever whatever the target was in derivative form but then they would go out and buy it themselves yeah so they would have a covered position well if we went bankrupt and that swap went away they were going to have to dump that stock because they were just net long they didn’t have the capital for that so there was going to be a five billion dollar wave of panic selling in the stock market on top of the bombers this was that’s a mess come that Lehman atop its pension funds where everybody feels that they would have closed the markets at least temporarily just just kept some rivers this is what we were up against so my point Brian is that Wall Street didn’t bail us out they took over our balance sheet so they wouldn’t have to have the fire sale which would have bankrupted them now the exact same thing happened in 2008 we were hours away probably days away a couple days away most from the sequential collapse of every bank in the world so Bear Stearns had failed in March of 2008 Fannie Mae and Freddie Mac the big word mortgage agencies failed in June and July of 2008 Lehman Brothers failed in September of 2008 they were falling like dominoes they were going like this and then Meryl Morgan Stanley would have been next then Merrill and Goldman then B of a thenn city then JPMorgan might have been the last guy standing but they all would have fallen same thing around the world deutsche bank Barclays and all the rest so you can I got a call Sunday night in my house in o8 saying are you coming in the office from my clients at JP Morgan Credit Suisse or whatever and I knew things were bad but I and I had watching the Lehman equity go down to zero sure and I didn’t know Lehman it failed yeah and so I was like why would I come in the office on a Sunday night and they’re like because we are about to start liquidating contracts because like like you’re saying when you miss some when you miss a counterparty right all of a sudden all these contracts that look like fairly low risk hedge instruments correct everyone has to start going in and lik liquidating right and and this and this is exactly the point which is that all the risk models that Wall Street uses and you’re familiar with them view traded this stuff this value at risk so you go to Jamie Dimon and say he’s doubled his derivatives book which they have since 2008 girls the president gave me more yes he is the CEO and JP we’re so you hear Jaime say oK you’ve doubled your derivatives book how much did the risk go out and he would say well very little because you know it’s long short long short long short long short all in that sack comes down this tiny little thing we need a little capital but this is value at risk right but that is not how you measure risk and derivatives because that only works when everything’s good but when you’re in stress and people are going bankrupt all of a sudden the net becomes the gross exactly what we just explained which is you take a counterparty out of the equation your net exposure now is a gross exposure and then it’s liquidating the gross or covering the gross that causes that the illiquidity in the markets causes the panic so why they are allowed to get away with providing capital using value at risk when that is not the proper measure of the risk astounds me but that’s the system we have right and in oh wait they were saying here in London RBS was like hours away from shutting down easy machines yeah which I think people don’t really understand when people can’t go to the ATM machine is where you get real panic right and you get humans behaving in ways we haven’t seen them behave in probably hundreds of years and that’s when there is no confidence anymore and scary things happen are you amazed that we made it through eight without more social unrest well given the magnitude of other response no although we would have had the social unrest if it had been allowed to continue but the way and the way I analyze it Brian and we talked about we just talked about the flaws in Value at Risk the models that are used equilibrium models normally distributed risk that means that you know the degree distribution of events is a bell curve 500 models on efficient markets all these simulation prices move continuously so I want to get out like and you know might be worse price but I can always get out every one of those assumptions is wrong empirically wrong that’s not an opinion if you actually look at the degree distribution of risk it’s not a bell curve it’s what’s called a power curve a different shaped curve which represents a completely different system prices don’t move continuously they gap up and down there’s no chance to get out anywhere in between markets are not efficient they do crazy irrational things all the time and those all the assumptions of modern finance are incorrect and yet we’ve built this one quadrillion inverted pyramid of derivatives on flawed models we shouldn’t be surprised that these things keep happening but the point I’m making is and you’re exactly right about the dynamics in 98 2008 in the next crisis we’re going to have the same dynamics on a larger scale the central banks will not be able to truncate it as they did in 2008 and it’s going to take six or eight months for the IMF to issue these SDR as they’re slow they’re not a nimble organization and they’re going to have to lock down the system they’re gonna have to shut down the system money market funds are going to suspend redemptions banks are going to be closed ATMs will be reprogrammed give you maybe it’s like Columbia basically or India today or India where you can’t get your money out unless we let you right so to Cyprus or Greece I mean this is hot right it’s happened in Cyprus just coming to Europe it’s coming to the UK and it’s coming to us it almost turns into this weird pseudo socialist communist system where you don’t you don’t own your assets anymore or you can take you can redeem your assets when we decide to let you write well it could be socialist that’s one description of it I have a chapter on socialism in my book but it will end up being neo-fascist and the reason I say that by the way fascism properly understood is not a creature of the right or the left their right-wing fascists but they’re also left-wing fascist fascism is the elevation of the state your muscley knees definition of fascism was everything within the state nothing outside the state you notice there’s no Civic Society there’s no individual everything is in the state that can come from the left or the right but the point is when you lock down the system and when you leave program the ATM’s and say hey you can have 300 pounds a day for gas and groceries and why do you need more than that you know it’s enough for gas agree we’ll get back to you about the rest of your money but that’s your allowance people will write they’ll start to burn things down they’ll break into banks etc break into supermarkets and and then there’ll be a militarized response and neo-fascist response because states don’t go down without a fight so that’s how this will play out right and then that gets that that just gets worse and worse right okay and so just to recap the yo a crisis what I think a lot of people don’t understand the bailout people are bailing out themselves bailing out our own system so we don’t have more pain down the road exactly and so okay and as long as people understand that so this next crisis coming maybe 18 maybe tomorrow maybe but it’s coming right and you went after long-term capital after you wrap that thing up and put it to bed you went back and restated markets I realized that they weren’t these Beautiful’s to tasks stochastic systems that we wanted to model and again these derivative instruments are very young yep 20 years old 25 years old well that’s that’s a very important point because so I was the lawyer so I did my job I we we negotiated the bailout we got it done but everyone went on with their lives I mean there were no enforcement actions no lawsuits nobody got a slap on the wrist everybody had a clean record everybody went back to business the back office of long term capital management moved like two towns away from Greenwich to Harrison New York started a firm called globe up a hedge fund administrator sold it for a billion dollars you know ten years later so Marya Wall Street Marcy I just going to ask a fish Cheryl said there are no second acts in American life but there were plenty of second Erickson myron scholes started a billion dollar hedge fund JM started another hedge fund i went on to start a couple funds and do other things but my point being that life went on but as so as a lawyer i say okay i did my job like we did the bailout everyone moves on nobody’s disqualified from anything but as just a person and i lost money personally and i was you know it part of this I was very dissatisfied because there was no dishonesty me it was just really bad mathematics in bed under risk management right yeah so and these guys were trustworthy but they were just they didn’t understand risk so I said wait a second they they actually are the smartest people around they all had 160 170 IQ is they were way smarter than I am they had the Nobel Prizes they had the pH C’s we had 16 PhDs it’s okay if the smartest people in finance got it wrong the whole thing must be wrong it can’t be that they were unlucky or they’re stupid because they weren’t stupid so there must be flaws nice math so I spent five years studying physics applied mathematics network theory graph theory behavioral psychology complexity theory variety of fields to understand what was wrong and I found it I discovered what was wrong that was actually that didn’t take too long what did take longer was okay this doesn’t work what does work like what how can we understand capital markets and this is where I kind of part ways with the Nassim to lab the author of the Black Swan so the Talab writes this book the Black Swan I need demolishes the bell curve he just takes a baseball bat he bludgeons the bell curve to death you know and and he should think that it’s good for some things but it’s not good for Phineas as in the bell curve is it an accurate representation of events of events the degree distribution of events that’s example right it’s not even close but it’s a but it mimics is sometimes which is what confuses people so so he destroys that but then he then he throws up his hands and says you can’t use math I’m a philosopher I’m going back to Lebanon see you later and he’s like it’s like no and it seems like I got to the same point he did and I’ve never read his book of course and as a yeah you’re right about the bell curve but we don’t have to throw up our hands we have to keep trying so then I spent another five years developing these models interestingly around the same time I was recruited by the CIA to help out with counterterrorism because there was insider trading in advance of 9/11 attack that’s obviously the last two trading days before 9/11 there was 286 times the average daily volume of put buying on American Airlines now when you buy a put it’s a bet that the airline is going to go down so that’s like statistically that’s like a guy who orders a sandwich for lunch every day and then one day he orders 286 sandwiches well you know it’s not him you know there’s something going on and that’s been well studied and what the CIA said is okay it wasn’t their job to run that down that was the FBI and the SEC had to go find the bad guys there but what the CIA said was okay if there were another spectacular attack being planned the 9/11 style attack being planned would there be insider trading again could you detect it could you trace it to the source get a FISA warrant break down the door break up the attack and save lives that was our mission we called their project prophecy now CIA you know they didn’t any helps fine but they didn’t have the capital markets expertise so they reached out they’re very good when they they know what they don’t know and they don’t know something they’ll reach out so I was one of the people invited in to bring in the capital markets expertise to help them figure this out and over time I became actually got more and more involved became a co project manager and ended up along with a couple of others leading this project prophecy and we answered all the questions we said yeah there will be insider trading you can spot it you can’t we we build a system to detect that but in the course of doing that part of me I learned I learned statistical techniques that I wasn’t familiar with as a lawyer because I wasn’t I said it wasn’t a trader work want including Bayes theorem sometimes called causal imprints and complexity theory well the more I got immersed in that the more I realized that that could be applied to other things we were using for counterterrorism but it could be used for predictive analytics in geopolitics and predictive analytics in capital markets normal politics was Alvin in Australia in New York a week before the u.s. election sank Trump’s going to win and getting laughed at in my face I thought I have all the videotapes so great thing about doing television you go to the timestamp videotapes you can’t prove it but I was using this base theorem I was using statistical method to make that forecast it wasn’t just because I was a partisan I was like now there’s very good evidence that he’s going to win same thing the brexit I was in the London Eye on June 20th saying sure it’s sterling by gold because I can see that the markets were price for remain and you know if leave wins you got a reprice those two things and so we’re getting very good results with this so I went on this ten-year intellectual Odyssey to figure out what works I did it and he pardoned me um so that’s the methodology I’ve been using I talked about all in the book I explained it all and it’s not a few equations but it’s not heavy on the quant stuff it’s pretty plain English were you ever able to predict any terrorist attacks based on the financial markets I mean I guess you probably couldn’t tell me if you did well we we did we did spot one and because it was broken up it was August 2006 and it was being executed here in London this was the liquid bomb plot and the plot was they were going to smuggle that they could make the explosives using two different liquids so you take two different bottles on the plane combine them you know said I’ll remember that Italy president blow up the plane in midair yeah they were trying to blow up ten planes mostly bound for New York so they would have killed everyone but mostly targeting Americans somebody who killed 3,000 Americans because they were looking at Delta American Airlines and you know British Airways and others well that mi5 a New Scotland Yard took that plot down I believe as a Wednesday morning early Wednesday or Thursday have to check the exact it’s like August 10th 2006 the Sunday before I’m sitting at home and I’m a little bit of a night owl so it was about two o’clock in the morning and my sorry that that’s when we that’s when they took down the puppet a couple days before that my colleague Christina Ray called me she said Jim I’m getting a bright-red on mark and Airlines right now this was we had a red yellow greens green all good yellow keep an eye on it red looks like insider trading we had built the system she’s I’m getting a bright red these are options trades or not they saw a lot of things that volatility volume mentum options skew there was a multi-factor formula using the kind of based assist achill methodology that I’ve been describing she goes I got a brake pad on American so we escalated that and this the part I can’t talk about like kind of how that goes up the chain but a day went by two days went by nothing happened and way well maybe it was a false positive you know we can’t really you know go any further with that and then the next day they mi5 took down that putt now I’m not saying we called mi5 and they were on that they went to that plot anyway they got information from I assign Pakistani intelligence CIA mi6 they all collaborated on this my point was we were our system was detecting a plot in motion and once there was one key arrest that was made in Pakistan and then when that happened the pack of standing armed and the terrorist cell called London said start the attack because you know they’re taking its downs to get the attack going and then that’s when the insider trading took place that we saw on our system and then as you say the plot was take but this was a plot in motion but we got the bright-red on the insider trading right and the theory is that there’s enough people involved in this attack and some of them are greedy correct now or maybe someone that overheard them or greedy and so the information gets out and somebody wants to play some bets that’s exactly right and I actually within the CIA I encountered a lot of skepticism when I outlined this methodology they said oh no you know the terrorists would never compromise operational security by doing insider trading this is a complete waste of time and I said look nobody’s saying Mohammed Atta on his way to Logan Airport to hijack the plane stopped off at Charles Schwab to put in a few trace that’s not what happened it’s your point Brian that these terrorists are operate within a social network everybody has a mother father sister brother cousin neighbor safe house operator driver etc and some of those people cannot are greedy cannot resist the impulse to bet on a short thing so I I had a two-word answer whenever I encountered this skepticism I said Martha Stewart because Martha Stewart was a legitimate billionaire Martha Stewart made a billion dollars legitimately she was a very successful business person but she ends up behind bars on $100,000 trade if you’re a billionaire why do you care about a hundred thousand but people cannot resist the temptation to bet on a short the trading does happen and then once it happens you can spot it right and if people don’t know the whole story with Martha Stewart like you said legitimate billionaire she was caught doing a tiny insider trading you know yeah it was something really just to be clear she didn’t actually go to jail for insider trading he was related to an alleged insider trade and I think there was some other kind of cover-up just to be fair to her but it was definitely it involved insider stock trading even though that was the not not the precise conviction but she ended up behind bars for a hundred grand basically yeah and humans do funny things correct and that’s why I believe the US has managed to block I think most of the the terrorism efforts on its soil because when you get more than three or four people just loose lips usually happen and there’s these lone wolf attacks but usually when it’s more than a few people they end up talking to a mole that’s in the CIA and yeah are worse yeah which which is interesting so now you can look at these financial liquid markets and you can be like okay something funny is happening right but what what I’m doing now is using the same techniques that I studied or learn to CIA and that we actually built we built this system and and then using it on my own to basically do forecasting and your geopolitical forecasting and forecasting and markets okay now you knew that this subtitle was going to get some people’s attention the global elite secret plan for the next financial crisis now what are you saying about the global elites are they doing certain things before this crisis as far as stockpiling cash doing certain things with their trades and are they doing this because they know better or are they conspiring with each other and what can we learn from what you know good well I don’t think it’s a conspiracy in the sense that there’s you know a small group of Illuminati wearing hooded robes sitting around a mahogany table like seeing a Spectre from a James Bond movie it doesn’t work that way of course you used to hang out with those Illuminati and yeah that’s a we’ll get to that later that’s another story so uh but but the way it does work and I talked about this in the book first of all it’s not a secrets that we know they are it’s Christine Lagarde her first step at the head of the IMF her first deputy managing director David Lipton professors like Larry Summers and Oh golf at Harvard public intellectuals here in the UK Adair Turner Anatole Colette ski mario draghi head of the european central bank so it’s a collection of central bankers finance ministers academics think tankers and public intellectuals and several hundred of them around the world who collectively run the international monetary system because they are they run the central banks or the multilateral institutions or there they are in and out of finance ministries where they have a lot of influence so that’s who they are they influence names and of what happened or more exact right so there’s no secret that it does another guy we know who they are okay so then what about the the hooded robes part and the answer is they don’t need that if you just said conspiracies fall apart they do experience these are kind of easy to spot most of the time it’s more the case they’re like-minded individuals they don’t need top-down organization because they will agree with each other they all went to the same schools they went to Oxford Cambridge MIT Harvard Chicago Stanford’s like six or seven schools in the whole world they all went to them in many cases they were each other’s PhD thesis of ours there’s no Stanley Fischer is a vice chairman of the Federal Reserve form MIT professor a little older than the rest he was living my alumnus here look there I know a lot of these guys may I kind of know where I’ll buy Spade guy as I said I hung out with the 16 PhDs in the two Nobel Prize winners a long time capital I shared an office with Myron Scholes for six years so I know this milieu but but Stanley was the thesis advisor to a lot of the other central bankers so they’re not only like-minded they they taught each other and they all learn the same thing and it’s all wrong they’re not uneducated they’re miss educated in other words the models that they have taught themselves that they perpetuate that they’re teaching to the younger scholars are at best obsolete and at worst dangerously flawed in ways that are setting up a system for this new crisis that will be worse than the last two so they so they’re in control they’ve they’re like-minded so they don’t need a lot of coordination because they all think alike they’ve got badly flawed models and they never see this coming so are they trying to wreck the system no but they are wrecking the system through their own kind of ignorance and misapprehension of the statistical properties of risk mean they are smart enough to know what we’re describing which is that this is going to happen again they can see it coming they don’t actually understand why but they know that nothing got fixed in 2008 one way to think about this Brian is that the dynamics and the mathematics of a financial panic are exactly the same as the collapse of any complex system anywhere in the natural world so earthquakes volcanoes forest fires you know various phenomena Vilanch is of this kind they’re not just metaphors I mean I use them as metaphors in writing but they’re not just metaphors the dynamics are identical and but with one difference which is in a man-made system you can truncate it with policy in the natural system you cannot so when an earthquake starts what’s the earthquake and an earthquake is a release of energy that’s how you define and measure an earthquake when earthquakes tarz you can’t stop it you can’t stop an earthquake in the middle say our time out you know it’s but if you could imagine if you could what would happen that energy would be unreleased but it would still be there the pressure would be there building up it just didn’t get released that time now bring that over to the to the net to the man-made systems there when the when the earthquake starts when the release of energy stars you can trunk is so yet dominoes falling boom boom boom boom you know that the last ones going to fall unless they drop a steel wall between two dominoes now the domino hits when the next one doesn’t fall that’s what they did in September of 2008 they dropped a steel wall between Lehman Brothers and Morgan Stanley and Morgan Stanley didn’t fail but because they guaranteed every bank deposit money market fund and and currency swap in the world when they should have let it fail or Nature would have let it fail well they should have let it failed now I don’t think we should have allowed ourselves to go and do something worse than the Great Depression there was a solution on the table that they never pursued because of cronyism see now we’re getting into the gangsters side of it the cronyism side so what they should have done by executive order in the legal authority was there they could have nationalized all the big banks not permanently because I’m not in favor of socialism but temporarily nationalize them clean them what you do is you wipe out the equity first of all you rip out the bad assets and you put them over here and Trust for the American people so we might take 20 years to sell them but whenever we sell them that money goes to you the taxpayers over here we now have a clean Bank equity you’re wiped out bondholders how BIG’s the hole in the balance sheet 20% haircut 40% haircut whatever it takes preferred stock you’re probably wiped out put the losses where they where they should be put the losses on the people who deserve it which are the stakeholders in the institution so now you get rid of the bad assets you wipe out the equity you now IPO or clean bank to raise new equity and you start overs with Citibank and gold and all these guys private with new owners and clean balance sheets and we can get the economy moving again continue watching this fascinating conversation for free by clicking on the link below to visit our website and I’ll see you on the inside sometimes I feel like an anthropologist examine the jungle to this exotic tribe of monetary leads studies them comes back to civilization and explains them in plain English and part of what I do is read these you know you twenty-four layers deep on the IMF website there’s some technical paper full of jargon I’m enough of a geek that I read it I understand it and I can tell people what they’re doing they tell them the SDR is coming the end of the dollar is coming this lockdown plan is already in place the u.s. is operating under state of emergency how many people know that we’ve President Bush declared a state of emergency two weeks after 9/11 understandable but it has to be renewed annually for 16 years President Bush and President Obama have renewed the state of emergency a mark is one phone call from martial law so these are all the things I see so this is what I’m telling people in the book so they don’t have to be victims yeah

Comments 87

  • Please have Peter Schiff on your show!!

  • Watch the Full Episode of James Rickards on London Real for FREE only at https://londonreal.tv/james-rickards-the-road-to-ruin/

  • Love James Rickards – thanks Brian – have a great 2017!

  • Great Interview But !!! But offcourse those top bankers have superiors in the shadow like Rothschild and Rockefeller. Brian David Icke would explain you how the system works behind the scenes.

  • Brian you on the right truck just go deeper into the Rabbit 🐰 Whole my friend. Like you said its alll perception what we see and don't see.

  • Trying like hell to follow this convo but it isn't happening.

  • ONE objection. His definition of fascism is dead wrong. The bigger the State, the more you are to the left. Therefore there can be no fascist right. Its a contradiction. What he might wanna say is people in power have no market, politics or ideology beliefes. All they are commited to is how to manipulate the market. Which in turn makes the financial market a bigger tool for those who are playing "the bigger game".

  • 9/11 was an inside job.

  • bitcoin and gold for the win.

  • אחד האנשים הגדולים.

  • Good interview but I'm not actually interested in modifying and correcting a corrupt market system. The solutions he has is just papering over a rancid, racist, sexist corrupt sore really and truly.

  • Wow-bit on the bold side that ST like the title one is understood 'probably' by one man…i thought this was 2017

  • that entrance music from 4:25 is great, any way we could get a copy?

  • I believe you meant Venezuela, not Colombia

  • Fascinating interview.

  • Go, buy James Rickards Road to Ruin book. Today!
    Imo, that kind of books are worth $50,000 of serious analytics and not just $40 book.
    Best $40 you will ever invest and thank me later.

  • SIX MINUTES before you hear JR speak a WORD! Come on.

  • Love Jim Rickards. Thanks for the excellent interview

  • James Rickards is no financial expert. He is never, ever right. Why does he no longer work for the CIA? Because he talks complete crap!

  • Notice how Jim didn't name the REAL people pulling the string by name. Just their puppets. 42:00

  • The best James Rickards interview

  • all traders and derivatives ppl should be lined up and shot. They take for granted that they SHOULD be able to make billions doing and producing nothing. NOTHING.
    Aka The Parasites. What do you do with parasites? Get rid of them.

  • 10% of your investment assets in gold & silver? What do you do with the other 90% take a risk?

  • "Most investors made money in the LTC fund"…That's because you got bailed out by the government, duh! Especially your gold shorts by the bank of England.

  • if the system collapsed would you as a store owner take gold are silver for goods "food,h20,bullets,flash light, bread,gas, ECT….. o don't think so seems to me food and supplies are worth much more than gold are silver in a crisis

  • Let’s examine Jim’s logic. We all know who the elites/illuminati are. Mario Draghi, Christine Laragde…….So obviously, according to Jim, they, not the Rothschild family or the Rockefeller family, run the word, even though they have accumulated more than half of planet’s wealth. It is those two-three clowns, appointed to some positions decide what to do with the entire market. U-hu. What a pile of BS. These people, that is Noble Prize laureates, have 160 IQ, but they are all “miseducated”. Perhaps then they should surrender all their laurels and prizes, reduce the IQ a bit, to like 60-80 level, if after so many Black Mondays and Black Swans they could not figure out that their model is wrong. And perhaps instead of taking professorships with different Universities they should go and work on construction site with their hands to improve their IQ.

  • I like this lighting and set up.
    Lghting and atmosphere/furniture is very important to make guest comfortable.
    Your show is next level, now. Keep improving.

  • Excellent interview. FIAT currency is the mechanism by which the controllers(= CENTRAL BANKS with the help from the government) steal wealth from the people with INFLATION and TAXES. FIAT currency is NOT money.

  • Wow, his view of the world is skewed by, I think, misunderstanding signal and noise, cause and effect. For starters, there are plenty of people who predicted both Brexit and Trump a-priori. You just happen to have one on your show. SOMEONE has to have predicted those things. But do they know what they are doing? Well, he could have made a ton of money in the betting markets on both those shots by betting before the fact. Did he? As for the "well studied" 9/11 insider trading event mentioned in minute 34, it has been very well studied, and it turned out that the options were traded by a large institution doing a long/short trade, nothing to do with 9/11. You can find this on page 499 of the 9/11 Commission Report. What else does he get wrong? He substitutes complex systems (earthquakes) for complex adaptive systems, which is a beginner mistake. So okay, he understands that Myron Sholes doesn't know how the world works, but does he? Are markets terribly inefficient? Is there a coming collapse? In five years, when there is no collapse, you can interview the guy who predicted that; or, if there is a collapse, you can interview the guy who predicted THAT. It doesn't mean either of these people has a handle on reality. It doesn't mean we should all be stockpiling precious metals. It doesn't mean we should believe guys like Rickards when he says the sky is falling, because NOBODY KNOWS. Better to follow Nassim Taleb's advice and be prepared in any event – read Antifragile for a counterargument to this paranoia.

  • 5 minute and 28 second infomercial-The interview begins at 5:29

  • Hi!

    Why do you mention Colombia in the minute 28:59, we hadn't bank lockdowns or ATM's shortages here in my country.

    Or maybe you people in London know something we don't know?

    Thanks!

  • As an ordinary bloke trying to think how to protect his private pension and savings, I, stumbled across the following. I have 40 years of experience in business and management consulting, here in the UK, Recently studying the macroeconomic and world financial climate, I believe we are soon heading into a perfect worldwide financial and economic storm. We, in fact, lemming like, could be about to experience a potentially catastrophic financial crash that could last for years. Potentially, this could be an economic crash greater than 2007/8 and even the Great Depression in the early 1930’s.
    Now for the so-called Western service led economies! The Western nations and Japan are sitting on huge debt to GDP ratios relative to many other countries in Africa, Asia or South America. The US and UK Stock Markets are vastly over inflated and hyped, if you compare them with an actual accounting audited value of the companies they represent.
    The US has lost 10’s of thousands of factories and millions of jobs to Asia over the last 20 years (over 50% of its people are now on Food Stamps with little individual savings!), as has the UK and many other Western nations. The US can barely repay the interest on its $21+ Trillion debt and could be in danger of a default over the next year or two. The Euro Zone is nearly broke (especially Italy Spain, Portugal, Greece and Ireland with their ECB and Northern EU nations underwriting their borrowing). Deutsche Bank and Commerzbank in Germany, for instance, have suffered huge share value collapses this last year. The French and German Banks are the largest creditors of Greece, Italy, Spain and Portugal and their governments and banks and will take a huge hit if a country such as Greece starts a domino style default. The Italian banks are currently in a huge financial hole that many think they may not get out of. If the European and world economies deteriorate, they, along with Greek and Spanish Banks, could be the first European financial dominoes to fall and trigger a crisis that could spread worldwide. The ECB keeps propping up these debt ridden Southern European economies with help from the IMF. The Euro, founded on the quicksand of political unity, is the biggest financial European mistake made in the last 200 years: it has little fiscal, financial or federal uniformity. European Banks also have worrying and precarious worldwide derivative exposure which will leave them vulnerable in the event of a collapse in financial confidence. Derivative exposure in the US, UK and Western Capitalist democracies are potentially catastrophic. Banks, including even the Swiss are increasingly offering only negative interest rates for you to keep your money with them!
    Individual household debt in Western nations is huge as we have been conditioned to be largely dependent on debt to afford the lifestyles we think we deserve (houses, cars, holidays etc). Government, public and private and company future pension liabilities are also massive and may not be met.
    Many economically underdeveloped oil producing nations have been in financial meltdown due to the halving of the $ per barrel price over the last 5 years. The knock on effect on their oil export dependent government budgets has caused great hardship and instability. Look at Venezuela, Nigeria, Russia, Iran, Iraq, the Gulf States; even Saudi Arabia, who are 70%+ dependent on oil exports to balance their economies. China is sitting on a huge property bubble and debt to GDP ratio (although they have Trillions of surplus renminbi to ride out a storm). The Dollar is in danger of losing its Reserve Currency crown as Russia, China and other countries including members of the AIIB (Asian Infrastructure Investment Bank) are increasingly trading more and more oil and other commodities between each other in their own currencies.
    Yet China, Russia, India and Turkey have been buying and hoarding gold in massive amounts over the last 10 years (more than the physical production in the world) while dumping significant amounts of US Treasury Bonds. This could be the precursor preparation for the coming financial crisis so as to prepare to rebalance financial and economic power in the East away from the West: by going back to a Gold standard currency backing.
    The working age economic contributor profile of the developed Western economies, Japan and China is past its peak with less spending by the older generations to stimulate the West’s service based economies (hence Merkel welcoming big family Syrian and Iraqi families for German factories). Japan’s economy has never really recovered financially since its own crash in the late 1990’s.
    The real estate market bubbles in London, New York, Tokyo, Vancouver, Sydney etc are ripe for a massive property value collapse. It seems to me that we are sleep walking into a world of increasingly turbulent financial, economic and political instability. We could be in for a circa 80% stock market fall during 2017/2018 which might take years to recover from. Inflation could skyrocket, unemployment could rise due to company failures and local and national government cut backs, interest rates could well rise considerably. Property could devalue in the bigger Western cites. The activities of banks, stock markets/exchanges, investment companies could be severely curtailed with weaker banks going bust with no protective government bailouts. Civil unrest would become common and have to be forcibly put down.
    Quantitative easing and low interest rates are the current life support machines that are keeping the dying US, UK and European service based economies alive. In the event of a crash, only the SDR (Special Drawing Rights) of the IMF might bring back some degree of economic and financial stability over time.
    I really hope I am wrong about the potential effect of the above symptoms that are presenting. I do not know, like the majority of you, what the best strategy to adopt is except to spread and rebalance my financial risks and asset mix; not that I am anywhere near wealthy. You may wish to consider getting out of too many equities or Government Treasury Bonds/UK Gilts in your private or company pension; but not all together. Have some cash to live off: Australian, New Zealand dollars and Norwegian Kroner to invest in; and possibly silver and gold(too expensive for me). Stockpile tinned food, pastas, rice, pulses, toiletries, toilet roles and medicines. Think of things that have a long shelf life that you need to survive and can’t get if the supermarket shelves get cleared due to panic buying. Good luck and may our creator protect you and humanity from itself! David.

  • Wait "Jim" not James??? Huh

  • So by my simpleton standards the little guy is perpetually held hostage?

  • what is the song or the mix beats he uses from 4:28 to 5:18 ?…where can I hear more music like this?

  • it's about confidence, so it's a confidence game??

  • is that y Western give dumped basically all of their good? so central banks could afford bailing out the banks??

  • James Rickard should be the president of the world economy !!

  • very interesting. thanks.

  • I can't profess to understand all of what was said, but it was fascinating, and captivating to listen to two men, who know what they're talking about.

  • Something ain't right with this guy. He claims the USA is under emergency law since the 911 false flag, where he claims it was normal to be under emergency law since the USA was under attack. Then he claims there was insider trading shorting aviation stocks and the CIA asked for his help but then he doesn't say who was shorting the aviation stock and had to know of the attacks? He claims it's not a secret society but just several hundred people running central banks etc. But we know of secret societies, the freemason connection with the Fortune 500 companies, NASA, police, military, religions, royalty, banking, media. And then we not even mentioning the whole network of connected secret societies and the compartmentalization within these societies. These people like Jim Rickards are just so used to be doing business like this that they always find excuses to keep these money monopoly frauds going, exposing the obvious frauds and trying to keep a base intact that enables them to start a new numbers game fraud. I've got a very double layered feeling with these so-called warnings, like a robber that calls you before a burglary and then pretends you should be thankful when he hands you back 10% of your belongings. A Stockholm syndrome kind of situation, oh no they are the bad bankers, but we are the good bankers. Plus if he still buys the whole 911 story he is not as smart as he looks or he is blatantly lying, saying the emergency laws/ NDAA/ patriot act etc. are understandable. People should check out the work of Freeman Fly and understand the "hidden in plain sight" revelation of the method symbology and occult language to recognize these banking systems and the universities that are creating these bankers are part of a bigger occult culture creation, that certain bloodlines have been behind the funding and creation of these universities as well as religious and military leadership, government, media, healthcare and form cabals like the Rockefeller, the Rothschild, Astor, Bundy, Collins, DuPont etc. The private interests behind the central bank and these 128 people Jim says he found to form this network which he believe are a naturally formed group out of shared interest but who if you ask me are under control of these old money bloodline networks. But like I said people in these circles find themselves to be naturally superior and believe they belong and deserve to lead these institutions and wheel this power. Why would they ask themselves if they are part of a fascist fraud whilst becoming millionaires and billionaires and then wen it collapses they wonder why they'll get hung from the neck by the people that revolt.

  • Is this Guy saying there was a conspiracy before the 911 attack? is that means all those who were buying, were part of alQaeda or have some knowledge of what's going to happen, how? And why they were not been arrested? Is he saying that was in inside job and few people profited from it?

  • Best interview with Jim that I have ever seen. Well done!

  • What was wrong? Lol. A PhD doesnt ensure these guys actually care about the greater picture — I would even argue to the contrary! And you need to understand that the greater picture has nothing to do with scientific finesse. It doesnt give you reputation. It's just tedious work as part of the government…..

    Just look at Buffett and when and how he got so filthy rich: all the experts told themselves the market is always right and it's useless to think about whether valuations are correct. That's how stupid PhDs are when they face reality…. they couldnt even imagine that their thinking actually is self-defeating because when everyone thinks the others do the job of valuating stuff, noone will do it…. this all has really NOTHING to do with IQ and everything with government being either stupid, idle, or subservient to PhDs considered possessing the ultima ratio.

  • yeah, right, replace the owners of the banks who understood less than the regulators what was going on lol. and keep the CEOs in place? haha. good joke. The business leaders were and ARE the problem, their mentality gets replicated by their employees.

  • Song at 4:30? What is that? it appears to be a remix of belico blackop from honey cocaine, pls anyone tells me what the remix is?

  • Marshall law wont work! They could only do it to a city or two and only for a short while. The rest of us will hunt down the bankers and politicians and string them up and thanks to the internet we know who they are and where they live. Onlt 10% of us is 30 million and we are armed!

  • Here is the timeline- -martin armstrong— ECONOMIC CONFIDENCE MODEL
    From an economic viewpoint, the economy turned down Wed. Sep. 30, 2015 on a global scale coinciding with our Cycle of War on the international model.

    We should see the economy turn downward into a steeper recession moving into Tue. Oct. 24, 2017, which is the next turning point on the Economic Confidence Model followed thereafter by Tue. Jun. 12, 2018. Caution is advisable for it appears we should see an overall recessionary trend emerge on a global scale this time.

    The critical political target on our Pi Model will be Mon. Oct. 22, 2018, where typically important political events unfold. Overall, this economic decline should continue into the next low of the Economic Confidence Model which will be due on Sat. Jan. 18, 2020.

  • Rickards cannot show a track record of making money,
    because he doesn't know how.

  • 5.30 of my life wasted

  • James Rickards is a legitimately smart person. However his business Agora Financial is a scam. They still operate under the old system of hiding terms in the small print. Buy his books from a reputable business and do not get involved with his company Agora Financial online.

  • The end of time is at hand. Evil rules the land. It's another sign of the apocalypse from Jim Rickards

  • Take way too long to get into your interview. Please shorten you intros.

  • This hardly an interview but instead one long boring monologue.

  • Please shorten your intros and get to the interviews. The intros are way too long.

  • What is that music at 4.32, its great!

  • After reading the book of the Currency Wars, I really wondered. I wish there were English subtitles

  • Which watch is James wearing?

  • Jim planting the seed for globalism? WE KNOW WHAT THE SDR IS AND WHAT IT WILL DO.

  • Finally, discussion of fascism and restrictions on liberty.

  • I've listened to the full talk four times and I enjoy it for the fifth time.

  • I love Rickards, but his proposed bio is probably not accurate. Best to look into it.

  • Nothing like listening to a couple of blokes who deal (have dealt) with vast amounts of money, and create nothing of tangible value for humanity! Money, a human contrivance that is totally made up, which people will go to great lengths to gain, and only has a use when you get rid of it!

  • Wall Street is a Casino. good to gambling and wasted your money.

  • Wait, did Jim used to do what he now, in effect, writes against?

  • All this info is great but what the fuck are we going to do about it ?

  • They are destroying the next generation.

  • Well Jim has kept saying for years that the stock market will blow up, so he has been dead wrong! There is only one real genious to interview an that is MA.

  • Hey your programs are good. But pls rethink about the background music in the first few minutes. Really an oppression on hearing faculty. Thanks!

  • Where is part 2??

  • I agree with him on gold and silver . But only 10% ??? Fuck that . Just like Mike Maloney says people that say put only 10% into gold and silver are crazy . That's wher everything is going to gold and silver .

  • Plz shorten your intro. Its way too long. Study your YT Analytics. Test short intro. More visitors will stay with shorter intro. Dang Dude, this one is way too lonnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnggggggggggggggggggggggggg

  • Lol odd I made a + after the 911th.

  • By the way the night before 9/11 it would have been 9/10 I thought about planes flying into buildings and that's not something I ever think about kind of makes you wonder

  • 29:59 do you mean Venezuela? not Colombia! in Colombia, you can get your money out of the ATM and banks.

  • As per usual a lot of Co-Intel-Pro spewing out of Jim Rickards Globalist mouth piece. The majority of Exceptional America's and Crime Against Humanity Ass. nations mercenaries, so called terrorist, don't have the wherewithal to pull such massive insider trading. On the other hand Exceptional America's and Crime Against Humanity Ass. Nations Plutocratic Minions and Globalist Owners do.

  • Bitcoin isn't backed by anything. The dollar is. The dollar is backed by slaves. All the people who can be taxed against their for their labor are slaves. It is backed by debt, not gold.

  • Where is part 2 I don’t wanna sign up on that website

  • Mr. Rickards is a very smart man, but has never been right on any of his predictions.

  • Today 12/09/2018 Reported on the news, Stocks are heading for the worst year since the 2008 crash

  • Minuto 48 se acaban los subtítulos, What happen?

  • Wow……this interview exposes so much.

  • 42:12 shush. Anyway, do Max Keiser or Peter Schiff next 😀

  • SO. MUCH. UNNECESSARY. FLUFF.
    Just cut to the interview – no one wants to sit for 5mins watching coffee beans and people jumping around.

  • what's the music at 2:00 ? peace up anyway

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