Published: 19 August 2013
James Rickards wrote the best-seller titled “Currency Wars-The Making of the Next Financial Crisis.”
What’s going to cause the next crisis?
Rickards says, “The problem in 2008 was too-big-to-fail banks.
Well, those banks are now bigger.
Their derivative books are bigger.
In other words, everything that was wrong in 2008 is worse today.”
Rickards goes on to warn, “The last time, in 2008 when the crisis started, the Fed’s balance sheet was $800 billion.
Today, the Fed’s balance sheet is $3.3 trillion and increasing at $1 trillion a year.”
Rickards contends, “You’re going to have a banking crisis worse than the last one because the banking system is bigger without the resources because the Fed is tapped out.”
As far as the Fed ending the money printing, Rickards predicts, “My view is they won’t.
The economy is fundamentally weak.
50 million on food stamps, 24 million unemployed and 11 million on disability, and all these numbers are going up.”
When the subject of gold confiscation came up, Rickards said, “I just don’t think it will happen because the government will find it will be very hard to enforce.” – Greg Hunter