Jim Rickards: Obama’s Abandoning the Saudis for Iran and Dooming the Petrodollar
By Alex Daley, Chief Technology Investment Strategist
I sat down with Jim Rickards, author of many best-selling economics and investing books, including his latest, titled The Death of Money. In this exclusive interview, Jim shares his view on the changes in US foreign policy—the newly announced partnership with Iran to help fight ISIS and recent moves away from the petrodollar deal with Saudi Arabia—and what they mean for the dollar, gold, and investment markets in general.
This interview just scratches the surface of the topics Jim covered in his speech at the most recent Casey Research Summit in San Antonio. You can grab a complete recording of that speech, and all 25 of the others, in the Summit Audio Collection, which is on sale with a juicy preorder discount for just a few more days.
Alex Daley
Chief Technology Investment Strategist
Casey Research
I watched most of this video and I say Jim Rickards talks mumbo jumbo.
Much better and most helpful in understanding the Petrodollar situation is Jerry Robinson’s “Preparing for the Collapse of the Petrodollar System.”
The United States needs to maintain the dollar as the world’s primary trade currency. Low rates of inflation and our standard of living depend on it.
Likely we’ll be able to pull it off. Helpful for understanding are Mish’s several posts on the dollar as a reserve currency that suggest that there’s no alternative.
My opinion is that American arm-twisting of treaty and trading partners needs to continue and will.
Though I’m opposed to military and economic coercion and wars, I think the US has found a way to pull off maintaining world hegemony.
Unfortunately remaining Top Dog will lead to less for most of us,more for the military, and more control by the State.
Do I like it ? No, and neither do you, but the way events have played out since 9/11 I see no other likely alternative.
Jim is not spewing mumbo Jumbo.
His facts are verifiable and accurate. The thing I think he does not understand is that SDRs will not be printed to prop up the debt based monetary economies of the west. Talk about balance sheets exploding. Consider that 70 million jobs out of 137 million total in the US are based in government, health care and education. Finance, insurance, law, leisure, hospitality and retail account for about 40 million more. Manufacturing is only 9% of total US jobs. This doses not even address EU DBMEs.
I don’t think Kings and dictators will be willing to take on the the Wests unfunded liabilities, derivatives and support its parasitic economies. It would have to print trillions annually.
Llpoh has painted the picture over and over; there is no reason for fat fucks, including me, to live in a fantasy world where our possessions are valued and our skills are remunerated at a multiple of the rest of the world. I look south and see that although their peso is one eighth the value of the dollar, their cell phones, food and gas are priced accordingly. Our dollar advantage is a delusion.
There was a move afoot at one time to level the wages of international workers. Then the goal changed and the wages of workers within the USA were essentially leveled – trash collectors, pharmacists and cops make the same amount of money per year.
Like Llpoh, I repeat my position: it is inequality in pay that creates wealth (not interest rate adjustments) if Americans won’t work for less than the minimum wage, someone else will, inside or outside the USA.