by Craig Wilson
On September 27, James Rickards joined Ameera David on RT to discuss current global economic conditions and the conundrum that the Fed has positioned itself into.
[…] “If you hold interest rates at zero for eight years, you do get bubbles. The money has to go somewhere. The Fed printed four trillion dollars. It hasn’t shown up in consumer inflation in turnover (what economist call velocity) but it has shown up in asset bubbles… Now the Fed is trapped. If they raise interest rates even a little bit they are going to pop these bubbles. If they don’t raise interest rates the bubbles are going to get worse.”
[…] James Rickards is a three-time best selling author that advises the U.S government on financial threats and was general counsel to one of the most influential hedge funds in history. He holds 35 years of experience working in capital markets on Wall Street.
“The last four reported quarters of GDP have averaged just over one percent. That’s pathetic. That’s not even the weak two percent growth we have had since 2009. That is one percent in the past year which is not that far above recession level. One thing is certain, we are closer to the next recession than not because this expansion has been so long.”