Jim Rickards on Currency Wars, the Fiscal Cliff and Global Markets (Videos)

source: Bloomberg.com
Jim Rickards, author of 'Currency Wars: The Making of the Next Global Crisis' and Senior Managing Director at Tangent Capital Partners (and "the principal negotiator in the 1998 bailout of LTCM by the Federal Reserve Bank of New York"), was on Bloomberg TV today and on December 5 talking about currency wars and the real strategy behind the Fed's quantitative easing programs (see below). He also appeared on RT's Capital Account on December 12, which I embedded below as well. They were all very interesting interviews and explain what's really happening in the global macro environment today.

Regarding the fiscal cliff, Rickards mentioned that tightening fiscal policy (raising taxes/cutting spending) during a depression will hurt the U.S. economy and make the S&P less attractive in 2013. But he remains bullish on real assets (gold) going forward as the U.S. Dollar gets debased by the Federal Reserve. So, similar to 2009-2011, if the dollar breaks down, it will probably be bullish for the S&P in nominal terms. It is interesting that the S&P 500/US Dollar Index ratio actually peaked in early 2011, while the S&P 500 made new highs in 2012. We'll see what happens with economic growth, Treasury yields and inflation in 2013. Fun game. Happy New Year.

Jim Rickards on Bloomberg TV on December 31, 2012 (Source: Bloomberg.com)

Jim Rickards on Capital Account on December 12, 2012 (Source: RT)

Jim Rickards on Bloomberg TV on December 5, 2012 (Source: Bloomberg.com)

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