http://usawatchdog.com/catastrophic-outcomes-may-come-faster-than-expected-james-rickards/
James Rickards is the Author of the best selling book 'Currency wars'. In his latest book he sees the end of fiat currency because of the excesses of the US Federal Reserve in printing too much money.

In this interview with Greg Hunter he thinks the end of the Reserve status of the US $ coming much sooner than he expected.

The US Fed is in a dilemma. If they taper or reduce money printing the share market will collapse and the US recession will get worse. If they continue to print money the bubble gets bigger making the end result worse. What should have happened in 2008 was to let the banks fail and allow market forces rebuild their economy based on real productivity. Now the USA has neither productivity or a stable finance system. The problems just got bigger.

China via the BRICS nations wants a new Central Bank that will back a currency with 40% gold to bring stability back to global trading. China has it own problems but their Govt has 4 $ trillion in reserves to bail out their banks while we have nothing but debt.

James Rickards notes as with many others,that is just a matter of when,not if the really big collapse happens.

There is no way we the people of Aust ncan bail out our banks with their $20 trillion of derivatives and mortgage assets that are 40% over valued. When they get into trouble again,should we just nationalise them ?

Employers hired steadily in May, placing the US on the one of the best four-month stretches of job creation since late 1990s and renewing optimism about the five-year-long recovery.

Non-farm employment advanced a seasonally adjusted 217,000 last month, the Labor Department said Friday. April's gain was revised down slightly, but the increase of 282,000 was the best in more than two years. The US economy has added at least 200,000 jobs each month since February, the longest such stretch since September 1999 to January 2000.

The jobless rate, obtained from a separate survey of households, was unchanged at 6.3 per cent in May, matching the lowest level since September 2008. However, the share of Americans participating in the labor force held steady near its lowest level since the late 1970s, at 62.8 per cent in May.

"There's no doubt the rate of job creation has accelerated as the labor market has improved," said Dan Greenhaus, chief strategist for investment firm BTIG LLC. "But there remains a fair bit of slack in the labor market."

The labour market also reached a milestone last month. Total US payrolls exceeded the country's previous peak level of employment set in January 2008.

Yes Arjay, we have watched this coming...corrupt globalists controlling an unsecured monetary system.....another block introducing a valid monetary system... pre texts for war. The European Banking Cartel feels vulnerable...in part the Ukraine issue is an expression of that.

How do we nationalize our banking system with Liberal and Labor at the helm...it was Labor who privatized our State Banks and the Commonwealth Bank.

Arjay as you know our banks exposure was minimal.....in real terms Australia lost money in the GFC because of our super and private investments in junk bonds that comprised of thousands of high risk individual mortgages that were bundled together and given a AAA rating to meet the charter requirements of these investment organizations so they could legally invest in them. The biggest stripping of assets in history and no one was charged...many of them went to work for the US treasury.......novel material mate....unbelievable corruption.....life imitating art.

Interesting...

"China has it own problems but their Govt has 4 $ trillion in reserves to bail out their banks while we have nothing but debt."

Yes, China is reporting it will have "$4 trillion in foreign exchange reserve by the end of 2014".

How will the vaunted changes you presented, where the US "share market will collapse and the US recession will get worse", impact China do you think?

Things could get weird for those Chinese banks if they are being bailed out by a financial bucket only full of holes.

Why don't the Chinese seem all that thrilled with their reserve, I wonder?

"The huge amount of China's foreign exchange reserve, which is mainly driven by trade surplus, has become a burden to the country, added the [China Daily] report."

http://usa.chinadaily.com.cn/business/2014-05/19/content_17516845.htm

579 the US has a 146 million in their workforce. Their real unemployment is way understated. Some say real unemployment is 25%.Much of these job increases were in Govt health, businesses,services etc and not in real productivity. The USA has 50 million people on food stamps of which half are working.So their Govt is going into more debt just to feed its people.

SOG, yes the Abbott Govt will not nationalise our banks but to allow a Cyprus style "bail in" ie confiscation of our banking accounts will totally devastate our economy. The people of Aust are too big to fail not our banks.

WM Trevor. China has been building strong economic partnerships via the BRICS and even Germany is temped to join. When the US $ goes down, this will affect the whole planet but nations with real productivity and little debt will come out stronger. It is worth noting that BP and EXXON are are entering in joint ventures to exploit Russian energy reserves. The sanctions are just window dressing because Russia is now number one energy producer.

We and many other nations now trade directly with China with no US $ exchanges. We could be seeing the financial forces of the West joining China and Russia in establishing a new world reserve currency which will probably be the Chinese Renminbi.

We are the world's second biggest producer of gold but have none to back our currency because John Howard sold it for a song. Our currency is too easily manipulated by markets forces and we are ruled by invertebrates who just do whatever the corrupt Central Bankers tell them.

This is merely capitalism at work. The capitalism of the past 200 years or so is a quite new invention. It's just "one" way, amongst thousands of ways, to manage mankind's activities. "Currently" mankind has chosen capitalism, even socialism these days embraces capitalism to varying degrees (Russia, China etc).

Like ALL systems, capitalism is doomed. ALL systems are eventually replaced by something else ... usually via wars, squabbles, fighting, religions, ideologies and force. Capitalism is nothing "special", it's not the "one true" way.

Arjay has a few good points, and when our banks get into trouble, as I
am sure they will, we should let all of them go bankrupt and the
government nationalise the Commonwealth Bank.
I think that would be more acceptable to those who are not aware of
what is happening.
That is basically what they did in Cyprus. There the deposit accounts
were taken over by the IMF's Financial Stability Board and enough deposits
seized to pay out the Greek Bonds and left the government bank in operation.

However this situation will not be driven by financial fiddlers but by
sometime after 2017 when the US realises that tight oil has started
its decline. That will put Wall St into a panic as they see their
economy shudder to a near stop.

The major oil compamies, Shell, BP, Mobil, Total etc have been
spending $Trillions in search and development of conventional oil to
very little result and their sales have been falling.
They have been getting out of the tight oil production over the last
couple of years as they know it is a dead end.

Our economy will be in a very risky condition.
By the time it hits the fan we will be importing 100% of our petrol
and diesel. Google NRMA Fuel Security report.
Tapis oil will be around $150 a barrel and there may well be a small
physical shortage. We will be reliant on others surrendering some of
their supply so that we can keep emergency services running.

If you think the above is just my ranting then you need to read a bit
more widely.
The above is what we have been warned about by the NRMA, the Bureau
of Infrastructure, Transport and Resources #117.
This is the report that was suppressed by the government.
The CSIRO expects $8 a litre by decade end. I think they might be right.

Bazz, there is no shortage of energy. No need for $8.00 per litre fuel. We have a super abundance of coal and during WW2 cars had coal fired burners running on the smell of coal. With new technology they could make the burning of coal far cheaper and cleaner but big oil don't own most of the coal. We have 300 yrs of coal reserves.

If we can produce milk on the shelf for a $1.00 a litre why not fuel for a car at similar costs? Present cars are only 20% fuel efficient and new technologies can make energy a whole lot cheaper much to the ire of our elites.

The Fossil fuel market is worth $ 200 trillion so there is much self interest in supressing new technology.

Arjay, you are about 40 years out of date.
The oil companies problem is not suppressing alternative fuels but how
to get them working. They know that all the low hanging fruit has been
picked and they cannot find enough feedstock to keep their businesses going.
If you have the alternate answers, I suggest that you trot along to the
oil companies and offer them your information.
Why do you think they are closing oil refineries ?
They are selling assets just to pay dividends. They know once the
market realises that the tight oil boom is over their share price will
start its downward slope. They are the end of the marketing chain and
they know only too well that once the tight oil declines they will be
in big trouble.
Forget coal, why do you think Germany shut down their Topisch plant
as soon as the war was over. South Africa built their plant because
of apartheid bans. Again the ERoEI is too poor.

Bio fuels have not succeeded and there are good reasons why they will
never be successful as transport fuels. For starters their ERoEI is
just not good enough, before even taking into account food production.
Algae is a possibility but not yet.

Coal will be reserved for steel making and steaming. Hey, we might
even start building steam locomotives again, wouldn't that be great ?

Arjay,
As I jave mentioned previously I am reading Joseph Trainter's
book The Collapse of Complex Societies.
Someone with your interest will find it very interesting.
The first half is real hard work where he goes through all the
different types of societies and then other authors theories on collapse.
However I am now into the second half where he discusses how as
societies get more complex their marginal production declines as their
society becomes more complex.
Quite interesting, and I can now see how our collapse is almost inevitable.

The rate of new job creation in the USA is not even keeping pace with the rise in working age population.

Quantitative Easing was the US Reserve system replacing poor quality bonds with government backed securities -something of real value for old rags!

What the USA needed after 2007/8 was for the USA Federal Government to start a massive repair program for its worn out infrastructure. That would have generated employment is the material supply industries, with flow on and multiplier effects, with the consequent increase in employment and profits leading to additional taxation income for the government. The total government debt is a self imposed load because it is, in effect, the Reserve bank paying interest on private bank reserves. That is one of the reasons private banks make such extortionate profits in Australia.

Almost all money is private accounts with credit balances in private banks. When the Federal Government makes a payment of any sort it instructs the private bank in which the creditor has an account to increase the balance in that account by the specific amount. The private bank receives an equal demand on the Reserve Bank which it knows is backed by the Federal Government. The internal value of any sovereign currency is maintained by citizens needing the currency to pay all government fees and taxes which are denominated in that currency.

China's reserves are of no use to China except to the extent that they can buy goods, or assets, from anyone who is willing to accept payment in $US. Unfortunately, because our governments always have short time aims, Australia has sacrificed its ability to manufacture. China did not do that. Had our government and Reserve Bank aimed to keep our dollar at or below 60c we would probably owe a lot less to better managed economies. We should have been exchanging the assets we are selling (coal and mineral ores etc) for assets in overseas countries.

Thanks Bazz for the ref. Foyle an apt description of what has unfolded.

Just saw Greg Hunter interview Andy Hoffman. Hoffman says the precious metal mines are doing it tough because the prices have been forced so low. When they take in all costs to make mining viable, gold should be a minimum of $1500 US oz. So prices and production are falling while demand increases.

There is no way we are going to get out of this without a major correction. So take control of your super and savings. They have announced negative interest rates for Europe and this is admitting the QE has not worked.

I was watching Peter Switzer last night and he sounds a bit worried referring to the 2008 collapse and whether currency activity could be the Canary in the coal mine.

We cannot make accurate comparisons with the past because we've never globally had so few in control of so much and never before had so much invested derivative gambling, money printing etc with no Glass Steagall Act to temper their excesses. Also here we have not got good leaders on either side of politics that inspire confidence. They are all held captive by the Central Bankers who created this mess. Gerald Celente says this will be bigger than the Great Depression.

We are basically on our own.

James Rickard's two books "Currency Wars" followed by "The End of Money" are two volumes well worth reading for anyone interested in the ramifications of international finance and how it will affect the world. Rickards was quite prescient in his opinions regarding the way nations are reacting to currency and I think his further thoughts on money in his second book will be equally so. He is an economist and a man with an intellect well above the norm who is sought by many governments and organisations for his thoughts and broadcasts constantly.

If you haven't heard him speak, it might be worth your while, because at the moment the future does not look very stable at all.

Another book I found extremely interesting and very recently published, is "Flash Boys" by Michael Lewis. An easy to read explanation and exposé of High frequency trading and the manipulation of the stock markets by Wall Street

All interesting and for once local politics has no part in the discussion.

Arjay said;
We cannot make accurate comparisons with the past because we've never
globally had so few in control of so much and never before had so much
invested derivative gambling, money printing

At the risk of being accused of nagging never before has any sort of
crisis coincided with an energy crunch. In previous times, 17th century
a shortage of wood led to the use of coal in the 18th century, then a
looming shortage of coal in the 19th century led to the use of oil in
the 20th century, then in the 20th century a looming shortage of oil
led to the use of, err of err what exactly in the 21st century ?

A mini lesson on geology;
Oil was manufactured over some millions of years in shale rock while
under great pressure and temperature. Later in more than 100k years
the oil leaked out of the shale rock and migrated upwards into pools
in different rock types.
This is why the shale rocks are known as the source rocks.
Now that we have extracted as much as we can economically from the
secondary rocks we have tackled the source rocks and as soon as we
exhaust the easiest to get shale source rocks there is nowhere else to go.
So, economically, the end of extraction from the source is when it
becomes too uneconomic for transport fuels.
It will always be economic for specialised plastics for medical use
etc but not for petrol, diesel and fertilisers.

http://www.youtube.com/watch?v=XIbIRj6y8nI Dr Jim Willie seems to have contacts that few others have. Here he says that Germany, Turkey and even Japan will join the BRICS nations and that Saudi Arabia is already a done deal.

The power change began when Russia stopped the USA and Israel from invading Syria and Iran. Power plays are changing rapidly. The West is enslaved in debt while the BRICS offer real productivity and development.

Note that Abbott cancelled a meeting with head of the IMF Christine Lagarde who is on charges of fraud and embezzlement. We already trade directly with China in Yuan ,so we too may get closer to the BRICS trading.

Abbott is right on Carbon Taxes but dead wrong on the TPP which will enslave us. Let's hope Abbott has some good advisors because Labor stuff up everything they touch.