Before the holiday weekend begins, best-selling author James Rickards joins Olivia Bono-Voznenko outside the NYSE to talk all about the markets and his latest book, “The Road to Ruin.”
Jim believes,
“We’ve exceeded the capacity of the central banks to save the day. So when the second crisis hits, which they always do, they come along every 7-8 years almost like clockwork.”
With regards to the And that,
“They are still at $4 trillion, so what are they going to do in the next crisis, go to $8 trillion, $12 trillion? What’s the limit? And there is an invisible confidence boundary that they will cross. And they know it.”
James Rickards believes it will take the Fed 10 years to normalize its balance sheet and that a crisis will hit before that. When that crisis hits, it will be up to IMF to reliquify the system.
Finally, Jim discusses the currency wars, Trump’s turnaround on China & the Fed and an inevitable crisis amid a weak system. Rickards talks about complexity theory and its usage in analyzing systemic risk.
