It seems as though every few months some new financial guru pops on to the scene and gives us dire warnings of an impending collapse of the economic system. All of them are convincing and all of them predict their particular catastrophe to occur in just a few months, so allow me to say up front that I am not necessarily endorsing the claims being made here. Rather, I’m only passing on information that I believe could be pertinent, because it did set my teeth on edge just a bit hearing it myself.
I think the thing that causes this particular prediction to get under my skin a little more than they normally do is because of the gravitas of the individual who is pulling the proverbial alarm. His name is Jim Rickards. He was a member of the team who negotiated the release of the hostages from Iran. Combined, he has spent three decades on Wall Street as an influential international investment banker and hedge fund manager. He was a influential player in the creation of the technology often referred to as the “brains of the NASDAQ.” Following the terrorist attacks of 9/11, the U.S. Central Intelligence Agency tasked him with attempting to ferret out financial trading with ties to terrorism. And, he is apparently the Financial Threat and Asymmetric Warfare Advisor for both the Central Intelligence Agency and the Pentagon. I’m not vouching for his credentials; I don’t know the man from Adam. But, needless to say, a resume like that garnered my attention.
His work with the government post-9/11 led him into a cooperative situation referred to as “Project Prophecy,” the purpose of which reportedly was to analyze trends in financial markets in order to be able to predict threats such as terrorism or other internal factors. And, it is apparently that same system that has led him to the conclusions he is making now: that this coming April 2015 will likely begin what is being referred to as a 25 year Second Great Depression for the United States.
You can view the interview for yourself, but the long and short of it involves the Misery Index. This is a system that adds the true inflation rate with the true unemployment rate as a measure of just how close society is to a social collapse, and Mr. Rickards says that we are in a very bad spot on that index – worse than we were prior to the first Great Depression. He also claims that the Federal Reserve has tinkered with this system often and it is rarely spoken of when pundits talk in front of the American public, specifically in an effort to keep things under wraps about just how bad it is. Essentially, they don’t want to start a panic; and I imagine that is exactly what would occur, because – assuming he is correct – this occurrence is unavoidable. All that can be done now is to prepare and attempt to mitigate the effects.
What affects? Well, aside from talking about a Second Great Depression, he is predicting that the U.S. dollar will fall from its spot as the world’s reserve currency. He is expecting it to begin with an almost instantaneous 70% crash in the stock market, leading to what could end up being a $100 trillion collapse over the next few decades that will cause global anarchy.
Again, who knows if this guy has any idea what he’s talking about, but – as I stated previously – his resume made me at least sit up and pay attention. As always, my advice is to pray for the best, while fastidiously preparing for the worst. Let’s all get our ducks in a row, folks. Could be a wild ride.
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