James Rickards, financier and author of the excellent cautionary best-seller Currency Wars, has recently released a follow-on book: The Death of Money: The Coming Collapse of the International Monetary System. In it, Jim details how history provides plenty of precedent for the collapse that has begun amidst the major world currencies. The historical progression is predictable enough that Jim is comfortable claiming that the next economic crisis we face will be bigger than the ability of the Federal Reserve (and the other world central banks) to contain it. And that such a calamity will happen within the next five years:
Chris Martenson: As you look forward the next three years what do you see coming? Are you predicting or seeing that this game changes to a new phase, The Death of Money? Is that coming in the next three year window? Or do you use this playing out over a longer timeframe?
Jim Rickards: No, I think three years is about right. I mean, it’s not necessarily going to be tomorrow. It could be tomorrow, by the way, the system is unstable enough. But it doesn’t mean we are going to get that catalyst tomorrow. But this is not a ten year forecast. I mean, I do not think we are going to make it ten years. I think three to five years is about the right timeframe, maybe shorter. But the reason for that, again, it is scientifically based in terms of the scale of the system. And by the way, go back and look at these crises. They come particularly fast. Memories are very short. I think we are all fighting with what I call the 2-second attention span. On October 19, 1987 the stock market lost 22% of its value in one day. Today, that would be a 3,200 point drop in one day. In 1994 we had the Mexican Peso crisis. In 1998, the Long Term Capital Management crisis. And I was involved in that, by the way. I was the general council of Long Term Capital Management. I negotiated that bailout and I know how close the world came to complete economic collapse. In other words, every stock and bond market in the world would have been closed on September 29, 1998 if we had not finished that bailout the day before…More