The author of six best-selling financial books, James Rickards, has said his new book “Sold Out” predicts a massive economic collapse in 2023. website writes. .com. On top of the “perfect storm” of inflation and ongoing supply woes, we have the recent crash of cryptocurrency exchange FTX.
Rickards says, “This will certainly cause back-to-back crashes in the cryptocurrency world, but will it ‘jump the fence’ in the broader financial world? My expectation is that it will happen, but it could be six or more months before that happens.”. We are probably headed for a major global financial crisis anyway. If FTX had never existed, I’d say we’re seeing a financial crisis worse than the one in 2008. Add FTX and it’s like adding fuel to the fire. “
Regarding disrupted supply chains, Rickards says, “The old supply chain has collapsed. A new supply chain is about to emerge, and I talk about that in my book and also what it’s going to look like. We’re in a very period situation right now.” messy in-between where things don’t work right. It’s like a vase. You drop a vase and it breaks into 5,000 pieces. You can’t put it back together. You have to go buy a new vase. We broke the vase and we buy a new one. But we haven’t gotten to the shop yet. Just cleaning up the mess…. Russia invades Ukraine. Ukrainian plastic pipe factory shuts down and suddenly the BMW production lines shut down because parts cannot be obtained. This it’s another example of how everything is falling apart and won’t be rebuilt quickly. There will be a new supply chain, and I call it Supply Chain 2.0.”
Rickards says the Fed will continue to hike interest rates: “They’re telling us what they’re going to do and we have to believe them.”
He thinks inflation will be with us for a while, but there will also be deflation. Rickards points out, “Why do Warren Buffett and Brookshire Hathaway have $130 billion in cash? Buffett is one of the greatest investors of all time. Why doesn’t he buy stock? Again, why does he have $130 billion in cash? It’s because Buffett he sees what I see. Yes, the system will completely collapse. It’s a really good idea to have cash because you can buy the “ashes” and do business. I mean, you don’t have to guess. Look at the government bond yield curve. Look at the Euro/Dollar futures yield curve.Look at other indicators and guess what that looks like?It looks like 2007.All I am describing but not that extreme by the way and it was a fact in 2007.Those Euro/Dollar futures Dollar were behaving exactly as they are now. But now the reversal is even worse which means we are in a crisis worse than 2008. It is coming. Everything I said has nothing to do with FTX. FTX and, as I have said, you’re throwing fuel on the fire.”
Rickards’ new book “Sold Out” will be out in early December.
