In today’s Money Morning…an urgent warning of financial shocks to come…how can you protect your wealth in a crisis?…the government and bank plans that could freeze your wealth…and more…
Will 2017 be the year that Australia’s long, recession-free run finally comes to an end? This week’s Money Morning brings a grim warning from Jim Rickards. Jim is an economist and bestselling author, but he’s best known for his forecasts of how government and central bank strategies affect investors around the world. And Jim isn’t calling for a minor market correction. He’s warning of a financial shock that could be as bad or worse than the Global Financial Crisis. If he’s right, there may not be long for you to put strategies in place to protect yourself.
So this week, Jim took over top spot in Money Morning. He brings an urgent warning about the triggers that could lead to financial shocks — here and overseas. And, just as worrying, he looks at how world leaders’ crisis-management strategies could be devastating for your wealth. To find out why, read on…
In this week’s first Money Morning, Jim Rickards explained why he expects the US Fed will be forced to violently reverse its policy this year. Most market commenters don’t see this coming. But as Jim pointed out, it’s not exactly unprecedented. It’s happened eight times already since 2008 — and always for very similar reasons. This year will be no exception. To read why, and for Jim’s take on the ripple effects for the US market and the world, you can find Monday’s Money Morning here.
Jim’s analysis of the Fed’s likely direction this year continued on Tuesday. He looked at the conflict that has been simmering between Fed Chair Janet Yellen and incoming US President Donald Trump.
During his election campaign, Trump promised that he would fire Yellen should he become president. Perhaps he wasn’t aware that the president has no legal authority to do that. Whatever Trump’s reasoning, Jim explained that it wasn’t the last antagonistic gesture between the two. And their relationship isn’t likely to improve. That antagonism has the potential to derail the Fed’s plans for the next four years, and Trump’s promised stimulus measures. And it could spell disaster if the US were to encounter any form of financial crisis. To read Jim Rickard’s arguments for why that is, click here.
If the tension between Trump and Yellen will make it difficult to respond to financial crisis, then Wednesday’s article brings more worrying news. Jim argued that a new global financial crisis is inevitable during the next few years. The banks’ risk models don’t see it coming, because they’re fatally flawed. There are reforms that could head this crisis off, but they’re politically impossible. And even if the Fed was willing to work with Trump, it’s out of fiscal ammunition. Jim argues that this crisis can’t be prevented. All you can do is prepare yourself to weather the storm. You can read why in Wednesday’s Money Morning.
On Thursday, Shae Russell brought you a special preview chapter from Jim Rickards’ new book, The Road to Ruin. Jim explains how the spread of a financial crisis has changed. The complex, dynamic systems of the modern financial world simply do not work the way they used to. The tools previously used by central banks and governments no longer apply.
But Jim argues that there is a new plan in place to handle the next financial crisis. He says he can trace it back to conception. It comes down to financial and political elites seizing total control of your money — the mechanisms to do so are already in place. You can read more in the preview chapter from Road to Ruin, here.
Friday’s article shifted focus. Shae and Jim had been warning of the likely causes of financial crisis in 2017. On Friday, they discussed how elites make use of such crises as opportunities to snatch more power. After all, no one wants to give governments or central banks more control over their wealth and future. It’s when panic has truly set in that controls can be smuggled in. They’re packaged neatly with the reforms we’re told will prevent the shock events from ever happening again.
If Jim Rickards is right about the crisis coming to Australia, which he’s been predicting in Money Morning this week, then you’re likely to see yet more controls clamped down on your money. The only way to avoid it is to have your strategies in place before it happens. Why? You can read the details in Friday’s Money Morning, here.
And what about the Financial Anarchists podcast this week? Kris Sayce brings you the results of our interview with former US Fed chair Alan Greenspan. There were some unexpected bombshells from the former Fed chair. That includes one that left Kris speechless. To hear the details, you can find the latest podcast here.
Next week, we’ll be returning to our regularly scheduled Money Morning editors, with Sam and Greg taking the helm again. But don’t worry. Shae Russell and Jim Rickards will return to the pages of Money Morning, to warn you every time the elites fire another salvos in their war on your wealth. Until then, you can find Jim’s strategy to protect yourself — even in the worst financial crisis — here.
Editor, Money Weekend