James Rickards sees IMF Printing Global Money After Next Crises

June 22, 2011

  • Greece has a long term solvency crises not a liquidity crises
  • Politicians are making the people suffer to bailout German, French, Russian, and Chinese banks
  • Solution will be a stop gap and to punt the topic until Trichet leaves office in October
  • Financial Repression : Sovereign debt issues do not necessarily need to end in a crises – negative real interest rates that erode purchasing power and real debt vi currency devaluations at 4% a year for decades will enable to governments to confiscate wealth from their people and pay their debts. 
  • Next crises, the G20 will enable the IMF to print SDRs.
  • IMF has the benefit, to governments, of being less accountable, less transparent, and allow central banks to operate with less political pressure

HistorySquared :

One IMF official was on record as recommending something like $100 trillion in new credit be created.  If you think Bernanke prints, just imagine the power hungry IMF getting the baton. Central banks are perennial bubble blowers. They flood the their countries with artificially cheap credit, that eventually turns into bad loans. Their solution to the aftermath of the credit bubbles is to devalue the currency.  Thus, perhaps we still have one last credit massive bubble before all faith in paper currencies is lost.  Stock markets would go to the moon, in nominal terms.

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