Predicted the GFC. Predicted Brexit. Predicted Trump.
So far, his pandemic predictions have been bang on the money too.
So, what is James G. Rickards predicting now?
Hello, Australia. Jim Rickards here.
I’m coming to you today from my self-sufficient mountain compound on the other side of the world in New England.
I’m writing because my Australian Investment Director, Nick Hubble, and I have been brainstorming.
Or ‘Zoom-storming’, I guess you could call it.
Put simply, the speed and severity of this crisis has flawed even me.
Comparisons to 2008 or even the 1929 crash, which started the Great Depression, fail to capture the magnitude of what’s unfolding.
You may have to go back to the Black Plague of the mid-14th century for the right comparison.
Nick and I want to figure out what happens next.
And how this ‘what happens next’ might impact Australian investors specifically. For example...
Look, there are no easy solutions. So much is in flux.
And I want to try and answer the questions above for you.
But there’s an even more important question than the ones above you should be asking right now.
Answering that question is the purpose of the report that follows.
Over the last few months, we’ve seen a new phenomenon.
The phenomenon of elite agents — governments, the World Health Organization (WHO), the United Nations, law enforcement, the medical establishment, business and tech interests, corporate media — harnessing HUMAN FEAR to tell the population what to do.
Yes, COVID-19 is a complex, existential and GLOBAL crisis that needed a concerted response.
But think about it.
How EASY was it for those running things to essentially put the entire world under house arrest?
Whether a global quarantine — and shutdown of the world economy — was right or wrong is beside the point I’m making.
The point is, you now know what happens when ‘ordinary’ people get scared.
And how easy it is for the elites to do what they want when fear takes over.
Remember this: Once we give up certain rights because of fear, they are rarely given back.
So, I think the million-dollar question is:
How will the global elites exploit COVID-19 to plan and execute their next move...and consolidate their power?
Will it be asset confiscation? Capital controls?
Will it be more militarised policing? Harsher border controls and more restrictions of movement? More privacy-stealing laws?
Big Brother surveillance...forced medical treatment...tagging and tracking?
The answer I have for you is actually not quite as conspiratorial as all that. But it’s much more far-reaching and will affect all of us.
In short: I think something big — and highly unexpected (by the general populace) — is coming as a direct result of this crisis.
Something that only happens a few times each century.
Something that could well occur next year, once we know who the next president of the United States will be.
Something that could define who makes money — and who loses money — between now and the 2050s.
Does that sound like something you should have on your radar right now?
We explain what it is in the report below.
And how you can tailor your personal investment strategy around it, if we’re right.
I really do hope you take this new warning — and its ramifications for Australia — seriously.
If you’ve read my research — and, specifically, my books leading up to Road to Ruin — you’ll know I’ve stayed several steps ahead of moving events in the financial and geopolitical worlds.
In the early 80s, I was in a team that helped negotiate the end of the Iran hostage crisis.
In the late 90s — when it was discovered that the Wall Street firm Long-Term Capital Management was about to cause a total collapse of the financial markets — I helped negotiate the $4 billion bailout from the Federal Reserve to stop it.
After 9/11, I was tasked by the CIA with investigating potential insider trading that took place prior to the terrorist attacks.
In the summer of 2008, I wrote this letter to top advisers in the presidential campaign:
Three weeks later, Lehman Brothers went bankrupt...
More recently, the trade and currency wars — which seemed fanciful when I published Currency Wars in 2011 — have since come to pass. I predicted Trump and Brexit when virtually no one else did, and showed readers how to position themselves. I predicted the current gold bull market, too.
I certainly didn’t predict COVID-19.
Not specifically. No one did.
But my four decades on Wall Street — and work as an adviser on capital markets to the US intelligence community — gave me a good idea how things might play out once the facts on the virus became known.
So far, everything seems to be going to script.
As far back as January — when the threat was still largely contained to China, and Wall Street was completely unfazed — I said WATCH OUT.
BE ALARMED. THIS IS BIG. PREPARE.
I warned of a global panic that could ultimately result in a lockdown of the global banking system.
But...critically...I told you:
I wrote that on 27 January.
And I stick by it.
I don’t think we’re going to start seeing the worst of this — economically — until the beginning of next year.
Only when things start looking ‘normal’ again are we going to see exactly what COVID-19 has caused.
I’m not talking about next week or next month.
But what happens in the second half of 2020 and into 2021.
The best evidence indicates that the global economy will not recover for years...and that an age of low output, low income, low consumption, high unemployment and deflation is upon us.
Put simply: The end of the lockdown is only just the beginning…
At Strategic Intelligence, our job is to untangle the web of interconnections and give you clear guidance on where the economy and markets may likely go from here.
That means understanding the statistical aspects of epidemiology (I’m not a doctor, but I am good at maths). But also, the conditional correlations among the pandemic...different economies around the world...the global financial system...and POWER.
Because, like it or not, it’s how those in power react in the immediate future that will define the global economy and financial markets for decades to come.
See, the coronavirus is not just a fatal disease. It’s also a catalyst for significant geopolitical instability.
As you’ll see below, what happens next very much depends on how the ‘elites’ leverage this instability for their own advantage.
If you think you know what’s going to unfurl regarding the coronavirus over the rest of this year and next, you don’t.
If you’re uncertain about what’s going on, you’re right to be.
Even the savviest analysts cannot yet internalise what happened.
Wall Street predictions have never been so divergent. Everyday people cannot be blamed for struggling to understand what’s going on. If the situation makes your head spin, don’t worry — it should.
Nothing like what we’re witnessing has ever happened before.
I’m not just talking about infection rates (although they are almost certainly lower than reported, as are fatalities). Or the possibility of more outbreaks when we think we’re in the clear (a high probability).
I want to talk specifically about how this crisis is going to be USED.
This is what you should be paying close attention to right now.
Because I believe the elites have a post-COVID plan.
And that they could very possibly enact this plan at some point in the next 12 to 18 months.
Now, I know. This might seem to you like more scaremongering after months of wall-to-wall bad news.
I don’t blame you for having ‘warning fatigue’.
I love Australia, I visit regularly. And I’m heartened to see that, at the time of writing, Australia is yet to see 100 deaths from COVID-19. No death is a good thing, obviously, but that figure is quite remarkable compared to countries like my own.
Stock markets appear stable (at the time of writing).
Nick tells me talk in Australia has now shifted to when the footy season will start... Restrictions are lifting...beaches are reopening...and kids are getting back to school.
But I really urge you to read the Prediction Report Nick and I have compiled for you below.
Because if we’re right about what’s going to happen in the aftermath of this crisis, you need to prepare. And you need to protect yourself.
We’re going to show you how to do that in this report.
The time to put these measures in place is now.
While there is still a sense of returning to calm and normality.
Because, if we’re right, that sense of ‘getting back to normal’ is not going to last long…
For now, I’ll hand you over to my Australian Investment Director Nick Hubble…
‘Never let a good crisis go to waste…’
That was Barrack Obama’s first chief of staff, Rahm Emanuel, in the depths of the 2008–09 financial crisis.
He was referring to the fact that crises — like COVID-19 — are temporary.
But hidden agendas are permanent…
The global elites and deep state actors always have a laundry list of programs and regulations…ones they’re dying to put into practice.
They know that most of these are deeply unpopular.
And that they could never get away with them in ordinary times.
Yet when a crisis hits — like a deadly virus — citizens are vulnerable.
They’re desperate for fast action and quick solutions.
And they’re more compliant than usual.
As Jim mentions above…
How EASY was it for the people who lead us to effectively LOCK UP THE WORLD?
And over the course of just a few weeks!
Didn’t take much persuading, did it?
After all, it was for our ‘own good’.
As you’ll see below, this is a pattern that occurs and reoccurs through history.
It just so happens that right now — 2020 and 2021 — we’re at this point again.
First a global crisis comes along.
Then the elites bring forward their radical plans and rescue packages.
But they use these as Trojan horses…
…to sneak their wish list inside.
Jim and I believe this is about to happen once more.
When you’ve got the head of the International Monetary Fund (IMF) coming out and saying ‘It is the worst crisis since the Great Depression. But it is more than that…’, you know we’re dealing with something huge.
The IMF is the world’s last-ditch lender.
It’s just prepared its coffers for a borrowing onslaught. It ALREADY has a lending war chest of $1 trillion. Four times bigger than it had during the GFC.
Over 100 countries have already applied.
That’s just to give you an idea of the backdrop we believe this historic event will exploit.
Nothing you’ve lived through compares to what’s about to happen over the next few years.
Not 2008. Not 2000. Not even 1987.
None of those financial panics or drawdowns are a baseline for understanding what is about to unfold.
Not even 1929 is a guideline! This is even crazier than that!
Lost income from layoffs, pay cuts, reduced hours, business failures, and individuals who are not only unemployed, but drop out of the workforce entirely.
This lost income will eventually spread to the stock market.
Folks who are unemployed or facing reduced incomes are not inclined to buy stocks. They will be too busy just trying to pay the rent, mortgage, car loans and credit card bills.
The process will feed on itself.
More deflation will encourage even more savings and LESS spending.
We’re in a deflationary and debt death spiral that has only just begun.
Our contention is this: The greatest economic upheaval event in a century is about to be used as cover.
If we’re right, a radical plan is about to be set into motion.
And history will look back on it as the single most significant event to come out of the COVID-19 pandemic.
But let’s be real. There’s so much ‘end of the world’ talk everywhere right now. When you drill down:
After all you’ve been through so far this year, why on Earth should you give a hoot about ‘elite plans’ and Machiavellian geopolitics?
The fact you’re reading this shows you care about how big forces in the world can impact your wealth building on a personal level.
As such, if we’re right, knowing this event is coming…what it is…and the ripple effects it could have from 2021 onwards…could be enormously useful to you financially.
Above all, knowledge of what we see coming will give you foresight into what the world might look like after central banks finally lose control.
Knowledge is power.
Financial crises dish out uneven amounts of pain.
Some lose everything.
Some — those with foresight and an appreciation of history — actually come out of them better off.
Our purpose today is to give you a chance to fall into that latter category.
So, let’s quickly recap where we are…
’COVID-19 emerged last November in China and spread lightning-fast around the world.
In the absence of a vaccine (which we likely won’t have until 2021 at the earliest) the only options were quarantine and mitigation.
The world locked down.
Consumption expenditure vanished in the course of weeks.
In Australia, that accounts for about 60% of GDP.
In the United States, it accounts for 70%.
So, that’s not good, is it?
In the first half of 2020, consumers stopped consuming — meals out, movies, flights, holidays, leisure, clothes, DIY, grooming...even cars and real estate.
America’s GDP alone contracted 4.8% in the first quarter.
Germany — Europe’s largest economy — is about to have its biggest contraction since the end of the Second World War.
We already know — at the VERY LEAST — that a deep global recession is coming.
That’s mainstream consensus.
But I’m telling you now that I believe the mainstream consensus is a gross underestimate.
As Nouriel Roubini, a New York University economics professor who predicted the 2008 collapse, says:
‘The risk of a new Great Depression, worse than the original, is rising by the day.’
As Jim says:
‘Let me just tell you now that in my 40 years advising financial institutions and the US intelligence community...I can honestly say I have never...ever...seen a more chaotic financial outlook than I see for the rest of this year and for 2021.’
It’s that simple.
So, what happens next?
Even before the pandemic, the international monetary system was a patchwork of soaring equity markets, floating exchange rates, hard pegs, dirty pegs, currency wars, open and closed capital accounts, and sky-high sovereign debt.
It is unanchored. It is incoherent.
We believe those who control the game (senior IMF position holders, central bankers, those at the top of the World Bank) are going to enact their INFLATE or DIE policy (and take actions that will, in the long term, cause even more untold harm to the average investor.)
They’ve actually been working for years towards this moment.
The aftermath of the virus will just be their excuse to reset.
Now, we’re going to give you some practical precautions you can take to preserve your wealth, no matter what happens. Consider these a sort of ‘global reset insurance’ for your portfolio.
But first, let me flesh out what we mean by ‘reset’.
Today, there is no limit on money printing. There is no limit on debt creation.
The system grows on the false belief that governments can spend as much as they want…and central banks will pick up the tab or bail out the system as needed.
Now, in late 2020 and in 2021, I believe you’re about to see the limits of that system finally get reached.
The elites loved it while it lasted.
Politicians could buy votes from their citizens. Central bankers got the power and prestige of being masters of the world economy. Wall Street and bankers got a virtual guarantee they could do whatever they wanted and stock markets would never be allowed to crash.
Handouts, bailouts, pumped-up asset values and other goodies were seemingly for free.
What’s not to like?
The 2008 panic would have closed banks and capital markets globally but for tens of trillions of dollars of central bank intervention. That bailout money printing has still not been mopped up. The 2008 bailout has sown the seeds of this next crisis.
The IMF is the last hope.
But it’s our belief the IMF will fail.
The problem, of course, is that the system was unstable and unsustainable.
We believe we’re about to see it break apart before our very eyes.
We have entered ripe conditions for a long-overdue reset.
Like Trump and Brexit, few see it coming.
Everyone is transfixed by the pandemic and its aftermath.
But as my colleague Tom Dyson at Postcards from the Fringe says:
‘The coronavirus outbreak gives the PERFECT political cover for the huge intervention that’s coming. As an excuse for financial intervention and monetary activism, it’s even better than war!’
If Jim is right, you shouldn’t face this unprepared. So, I’d like to show you what it is, how it could play out, and how to position your portfolio for it.
Just before, or during, a complete collapse, the powers that be come together in an obscure place and hash out the terms of the new currency system.
That new system usually gets named after the random place they decided to meet.
Towards the end of the Second World War, it was Bretton Woods in the US state of New Hampshire.
But trade imbalances and the outflow of gold under the Bretton Woods system forced the Smithsonian Agreement and the Jamaica Accord in the 70s — two more resets that gave us floating currencies.
The Treaty of Versailles was one they got wrong, with disastrous consequences.
These are just some examples from the 20th century. But the history of financial system resets goes back much further.
Ever wondered what ‘wiping the slates clean’ really means?
Ever bothered to find out what’s written on the Rosetta Stone — the key that allowed us to unlock the secrets of ancient languages?
These refer to ancient financial resets.
The world used to know them as debt jubilees — when all the debt record slates were wiped clean and all debt slaves were released from their bondage.
These resets occurred for the same reason as those last century — to prevent a crisis and the uproar that goes with it. To create a new workable system.
And…most importantly…to ensure the elites that make the rules STAY elite.
Again — I just want to clarify what I mean by ‘elite’.
These are not mysterious, Illuminati-type figures.
THE FIRST RESET?
The Rosetta Stone records the achievements of Egyptian pharaoh Ptolemy V.
These include something called a ‘debt jubilee’. It records how Ptolemy declared all debts, then known as ‘slates’, to be ‘wiped clean’. And all debt slaves, known as ‘peons’, were freed.
These are people with power and means (some of them names you’ll know) who run the institutions that form a kind of global superstructure.
This superstructure is like a snare net encircling all nations.
The people who run it aren't democratically elected. They're not accountable to you and me. They're beyond the reach of government and citizens, and yet they hold the fate of the global financial system in their hands.
According to Jim Rickards, a shortlist of these people just from the world of central banking and foreign relations would include:
‘To get a sense of how they operate, imagine an array of floating spheres. One sphere is labelled IMF, one is labelled Fed, one is labelled Bilderberg, one is labelled Wall Street, one is labelled Central Banks, one is labelled Intelligence Agencies, one is labelled media, and so on.
‘The elites inhibit all of these spheres, and together the network forms a kind of 3D Venn diagram. As I see it, regardless of what sphere they inhabit, the elites all share the same vision, One World Order, One World Taxation, and One World Money. All of their actions are geared toward moving that agenda forward.’
– Jim Rickards
Throughout history, people like these have picked certain times when they RESET the global financial system.
At some point, a reset of the financial system becomes preferable to the status quo.
It might be that the level of debt is just too high to service. Or perhaps a government printed too much money.
Or it might be a ‘black swan’.
You will have heard the term before. Many call the pandemic a black swan event…one of huge impact that was highly improbable.
The truth is COVID-19 is the opposite. It’s a highly probable, but neglected, threat.
We’ve been told by experts for years it was a case of when, not if.
But that when is now.
And it’s just the existential threat the elites need to do one of their periodic re-orderings.
In 1971, it was the American trade deficit that led to an outflow of gold.
Whatever the threat, a reset comes when a financial system hits its limits.
As Jim details in his latest book Aftermath, Reset 1922 was the first really effective reset that the elites pulled off last century. It was the Genoa Economic and Financial Conference.
Thirty-four nations participated in the conclave, held in the Palazzo di San Giorgio in Genoa, Italy.
Post World War One, this reset featured the economic reconstruction of Europe…and the status of reparations and relations with the relatively new Soviet Russian regime.
The next reset was the biggest of the 20th century.
RESET 1944 was the United Nations Monetary and Financial Conference of 44 nations, better known as Bretton Woods.
You’ll probably recognise the name. It was held at the Mount Washington Hotel in Bretton Woods, New Hampshire.
To say the Bretton Woods system established a new monetary order is an understatement.
This was where the elites ensured everything would stay in their favour for the next 70 years.
In one meeting, they set up a new system of rules, regulations and procedures for all the major economies of the world.
The aim stated in the press was ‘economic stability’.
It always is!
But Bretton Woods established the International Monetary Fund (IMF) and the World Bank…and in doing so created the actual institutions that could formally carry out the next reset when needed.
JIM RICKARDS BELIEVES THAT NEXT RESET IS COMING.
AND THAT THOSE WHO DON’T PREPARE FOR IT COULD LOSE OUT BIG-TIME.
Even before this crisis hit…
Did you ever wonder how the world can continue to borrow more than it could ever repay?
Did you think that countries like Greece and Japan will honour their debt mountain forever?
What will happen to the student loans that cannot be repaid? Will younger generations always agree to be debt serfs to banks for decades just to own a house?
What will a slowdown of the magnitude we are witnessing mean for a financial system ALREADY at its limits?
If you’re wondering how it all will end, it’s likely that a global financial reset is your answer.
No-one — not me, not Jim, not Warren Buffett, not anyone — can know for sure how this will play out.
But we can make a sensible, educated, calculated guess.
As Bill Bonner explains…
‘The first stage of a major debt crisis is deflationary. Prices fall. Companies go broke. People get laid off. Investors typically rush to the safety of U.S. Treasury bonds. T-Bond prices go up, even as prices for corporate and “junk” bonds go down.’
By that logic, we’re entering that phase right now.
But, says Bill, then comes stage two: Inflation.
‘Now the feds are pumping in new money on a whole ’nuther scale. And that’s when the T-bonds go down.
‘Why? Because the only way the feds can fight the downturn is by issuing more fake money. More bonds. More quantitative easing (QE). More dollars. More stimulus. More deficits. More Repo Madness.
‘Sooner or later, all this new, fake money drives down the value of money itself…
‘…and T-bonds, calibrated in dollars, go down too.’
And amidst all this chaos, as it all comes to a self-inflicted head…
…the elites will simply propose a new system entirely.
This is something Jim Rickards and I feel in our bones is about to happen.
The point is: History shows we’re due a reset.
The thing to know about these momentous events, when the rules of the game of economics are rewritten, is that they cost some people their entire wealth.
The Great Recession was really just a preview for what’s coming.
But, even then, the domino effect of the Lehman Brothers bankruptcy caused a wave of wealth destruction in America and around the globe.
All told, losses from that ‘preview’ are estimated at US$10 trillion. That’s more than a sixth of the global gross domestic product in 2008.
Imagine what the main event might look like…
The Great Depression probably gives you a better picture of that.
That truly was a life or death financial calamity.
As economist JK Galbraith put it: ‘Some people were hungry in 1930 and 1931 and 1932. Others were tortured by the fear that they might go hungry.’
A mammoth 90% was wiped from the New York stock market.
At one point, 32 million Americans alone had no income at all!
By 1933, one in three breadwinners were unemployed in Australia.
Income from Australian exports cratered. Local industries came to a standstill.
Government slashed spending by 20%.
‘Should men now go without the necessities of life in order that the international money ring should have its pound of flesh?’ Labor premier Jack Lang asked at the time.
This is the wealth destruction that occurs when the elites come for their pound of flesh.
There are things you can do to give you a good chance of that not happening to YOU. To protect yourself…even as the bread lines and dole queues grow…
We’ll get to them soon.
You can potentially enhance your personal portfolio to a great degree…even as others are having their wealth eroded.
I’ll get to specific moves in a second, too.
But, above all, you need to try and get an idea of what the world might look like in the aftermath of a reset event. And arrange your portfolio accordingly. Most importantly:
With so many variables in play…and the news cycle seemingly having shifted from 24-hourly to hourly…it’s a difficult task predicting the next year and a half.
ESPECIALLY with a US election looming.
But Jim and I are trying to do it to the best of our abilities.
To summarise: No matter WHAT further path the virus takes, we see more rapid financial asset deflation (falling stocks, with the odd bear market rally)…
…then giving way to rapid inflation, driven by huge government spending and central bank efforts to stop the bleeding.
But we believe you’ve never experienced anything like what’s about to happen in your lifetime.
This is how Jim sees it panning out (and I agree):
Right now you have dominoes falling…trade routes, supply chains, travel, retail, manufacturing, tourism, financial markets…basic things that make society tick…
For now, these dominoes are falling in an orderly way.
The markets will keep falling (Jim thinks by around 60-70% at least from the peak).
Gold will spike to $5,000 an ounce or higher.
Treasury yields will go deep into negative territory.
And THAT’S when the elites will enact their reset.
Freezing the global financial system from the top down. And wiping the slates clean…
Starting in the United States and spreading outward, according to Jim, people will lose access to their money.
That’s right. You won’t be able to get to your money.
If this reset plays out as we predict, it will mean total lockdown of the financial system.
In the 2008 crisis, governments met the demand for liquidity by printing money, guaranteeing banks and money market funds, and engaging in trillions of dollars of currency swaps.
The problem is that the central banks still haven’t normalised their balance sheets and interest rates since the last crisis. And it’s virtually impossible to do so now.
Money printing won’t be an option. Because central banks have printed too much already. Any more money printing would trigger a complete loss of confidence in fiat money and a mad scramble for hard assets.
Instead of money printing, Jim reckons the elites are planning something else.
A total lockdown of the system. One that will not let investors get their money out.
‘This will begin with money market funds and then spread quickly to bank accounts, ATMs and stock exchanges until the entire system is frozen.
‘Then an international monetary conference will be convened to create a new global monetary standard, probably based on special drawing rights (SDRs), which will be printed by the trillions and handed out to governments to gradually reliquify the system.
‘Governments can see this coming and are already taking steps to prepare for more extreme measures.’
Yes. I know. That sounds crazy.
But I have to draw you back to the ‘crazy’ things that Jim has gotten 100% right before.
Remember: If history is anything to go by, we’re long overdue this next reset.
And, if it happens, you better bloody make sure you’re on the right side of it!
There are two ways to do this.
The first is to own assets unaffected by monetary chaos and government decree.
It’s unlikely the government will ever confiscate your home or ounces of gold you own in secret. The price of both might surge or tumble, but you’ll own a hard asset either way.
Assets held in the financial system are at risk. That means not just your stock portfolio, but the money you hold with a bank.
Just look at what happened to people in Cyprus in 2013. A chunk of their bank deposits were used to bail out the bank!
Or in Argentina in late 2001, when government froze bank accounts and forbade withdrawals for a FULL YEAR!
Whilst we’re not suggesting this is likely to happen in Australia, this is an historical example of what’s possible.
At the very least, you need to think very hard about how much of your wealth is tied to the stock market. In the coming months, you need to be very wary of analysts and financial advisers trying to convince you it’s the bottom, and to buy.
(With the exception of certain gold stocks. We believe they’ll likely go up as the wider markets go down over the medium term.)
Australia didn’t have a fully developed stock market in 1929. Nowhere near as many ordinary Australians were stock investors then.
But America did. And a repeat of the collapse on Black Tuesday is almost impossible to imagine here, today.
As History.com writes: ‘Billions of dollars were lost, wiping out thousands of investors, and stock tickers ran hours behind because the machinery could not handle the tremendous volume of trading.’
And they kept falling.
At the bottom, some investors had just 10% of their stock portfolio remaining. I’m not saying for a second it will be that bad.
But you need to know that these losses have occurred in history. And history shows we’re due a reset event.
You also need to think about owning things the government need not know about, and things that are unlikely to be taken from you.
Then there’s the second thing you can do…
And that’s take a ‘barbell approach’ with your investment portfolio. One that means having some protection at both ends.
A post-reset world could be of deflation OR inflation. So you need deflation protection AND inflation protection at the same time.
We are in unprecedented times.
This means you have to be nimble, and you have to watch the data as things play out. You can’t put a stake in the ground around one particular outcome because the chance of getting blindsided is high.
For this reason, I believe you need a ‘barbell’ portfolio.
We’ll get to that later.
But for now, just know this…
This reset event could be hosted in a variety of big-name places.
Davos, the G20 in Riyadh, or at a Bilderberg Meeting.
If Donald Trump wins in November, it could take place at his Palm Beach resort, Mar-a-Lago.
It’s the perfect international monetary reset location.
Built by Marjorie Merriweather Post in 1927, it’s now a national historic landmark owned by Trump.
The ornate gilded halls bear a passing resemblance to Italy’s 13th-century Palazzo di San Giorgio, site of the Genoa Conference in 1922.
But even if it doesn’t happen there, Rickards and I are certain it’s coming.
And it will come out of nowhere.
The Mar-a-Lago Accord, The Davos Accord, The Riyadh Treaty or The Bilderberg Agreement will establish the new financial order — overnight — in the face of chaos.
It might be a global currency, like The Economist magazine predicted this year.
Or the end of the fiat currency experiment and a return to gold, as Jim Rickards has long predicted.
Or perhaps the elites might harness the power of the blockchain, as some countries are already exploring.
China’s secret gold purchases and Germany’s gold repatriation from America suggest where they’re putting their money.
Russia and Singapore are looking at blockchains and digital currencies.
Elites are on the move…positioning themselves for the coming reset.
They won’t admit it publicly — but they know this virus is about to expose how heavily they have abused and mistreated the financial system.
But, according to Jim, it’s been admitted among like-minded elites for years…
‘Incoherent is the exact word used by both Ben Bernanke, former Chairman of the Federal Reserve, and John Lipsky, former acting Managing Director of the IMF in separate conversations with me,’ says Jim.
‘I spoke to Bernanke in Seoul, South Korea on May 27, 2015 and to Lipsky just a few months later in New York City. Each used the world “incoherent” to describe the international monetary system. I’ve never heard either one of them use that word publicly.’
The point is this…
Whatever new system they choose to make things ‘coherent’ again, you need to be ready.
Because the shift will be swift and firm.
It will come amid the noise and distraction of COVID-19.
Those not paying attention…those who have not read this report…may not even notice it.
It’ll be an article that appears about three quarters down the front page of a newspaper.
But what, specifically, could it mean for you and your wealth?
What will the end of this giant, historic boom period look and feel like?
And what investments and money moves should you be making now with this potential future in mind?
Jim’s put all the pieces together in his most controversial book to date.
It’s called Aftermath: Seven Secrets of Wealth Preservation in the Coming Chaos.
Now, I realise, for many, a lot of what you’ve read so far may seem hyperbolic.
But I stand by the following statement:
If the predictions in Aftermath are correct — and it IS an ‘if’; nothing is certain — then this book, and the recommendations contained within, could provide you with cover during a period of financial chaos that could be unlike anything you’ve seen in your life.
Think what you’re seeing now is completely crazy?
Just wait and see what comes as a result of it…
It’s an absolute must-read, right now.
For that reason, if you give the go-ahead, I’ve arranged to mail you a physical copy immediately (provided you have an Australian mailing address).
Aftermath digs into what Reset 2020 might look like.
You’ll discover a horrible endgame of control and wealth extraction. One that will make the bank bailouts of the GFC look positively ethical by comparison.
‘They’ll come after every penny they can, through taxation, penalties, regulatory schemes, bank levies, trumped up criminal prosecutions, good old-fashioned thievery.
‘In the end, we’ll see the rise of Neo-fascism around the world, along with massive redistribution of wealth. The elites will come out the big winners. Everyone else, including the middle class, will come out devastated.’
As will become very clear as you work your way through this book, things ‘won’t go back to normal’ after the next crisis. There will be a new normal.
We're about to go through a one-way door. There is no turning back.
This won't be about fixing the capitalist system. It will be about RESETTING it.
All we're waiting for now is the big domino…
Look, I know I’m biased, but you really have to read this book.
I’ve read hundreds of investment books. Last year I wrote my own, called How the Euro Dies.
But I’ve never seen anything put the pieces together quite like this one.
Remember: Jim’s history and connections get him into the same room as some of the biggest elites on the planet.
‘I set up a one-on-one meeting with another member of the network,’ says Jim in his book.
‘His name is Zhu Min, the former Deputy Governor of China’s Central Bank. Until recently, he served as Deputy Managing Director of the International Monetary Fund.’
That doesn’t mean they spill their guts to him. Far from it. But, according to Jim, in many cases it’s more about what they DON’T say than what they do.
According to Jim, Zhu is a brilliant guy. He’s pleasant and comes across as well-meaning.
But there’s no doubt in Jim’s mind that he’s also a member of the elite network possibly preparing to impose the imminent reset.
Jim’s quest in writing Aftermath also led to another, frankly, incredible meeting.
You don’t get much higher in the elite echelons than a face-to-face summit with the head of Bilderberg.
‘We met at Rockefeller Center in Manhattan, and he was very eager to get my take on the Euro as a currency. I was happy to provide it, of course, in exchange for some valuable intelligence,’ says Jim.
Jim insists he did not have horns.
Or a sinister cape. Or a white cat purring on his lap.
He even gave Jim a nice gift when they parted ways — a blue Swedish vase.
But Jim stresses this…
‘My point is, I came away from all three meetings convinced of one thing. When the next crisis hits, the elites are planning to freeze the financial system, and they’ll replace it with a new system, one not based on the US dollar.
‘When that happens, we’ll wake up to a very strange and disturbing new reality.’
What might that reality look like?
It’s all in Aftermath: Seven Secrets of Wealth Preservation in the Coming Chaos.
Now, it should be pointed out that Jim Rickards is not licensed to give direct investment advice here in Australia.
But I am. And as the Australian co-editor of Jim Rickards’ Strategic Intelligence Australia, I can tell you there’s not a single piece of advice in Aftermath I wouldn’t wholeheartedly give to my own readers, friends and family. Like:
Overall, some may come away from Aftermath a bit shaken.
But recent big news events since 2007 will start to make a whole lot more sense to you.
For instance, Jim believes the elites have been conducting a series of dry runs for the coming reset for years.
Look at Cyprus, for example.
You’ll remember that in 2012 and 2013, the Cypriot economy was in complete financial chaos. Its banks were reeling.
The IMF stepped in and loaned Cyprus $10 billion, but the loan came with strings.
‘Now pay attention, because this is precisely what they’re going to do, but imagine it on a global scale.’
In exchange for the capital injection, the IMF demanded control over the Cypriot banking system.
More specifically, the IMF froze the entire system.
Literally every bank in the country.
It did that to ensure the IMF’s demands were met, including strict capital controls.
How did all this impact regular citizens?
Their local ATMs went dark.
Even the bank branches closed, permanently in some cases. Citizens could not withdraw cash. They couldn't even transfer funds from one account to the other.
What came next? Wealth extraction on a grand scale.
The IMF basically stole billions in cash from the Cypriot bank accounts.
At the time, a Daily Mail headline called it ‘bank robbery’.
How did the elites justify this? They called it a levy.
The price citizens had to pay for their government's missteps.
Keep in mind these asset confiscations were done at the balance sheet level with the institutions themselves.
They never had to confiscate individual accounts. They froze every account by controlling a handful of the country's biggest banks.
Because that’s what Jim and I believe is about to happen.
And, as Aftermath will show you in grisly detail, it will be a highly coordinated global attack on the entire system simultaneously.
In writing and public speaking, Jim frequently uses a snowflake-avalanche metaphor to describe the way systems collapse.
It begins with the build-up of an unstable snowpack on a mountainside. Billions of individual snowflakes form an interconnected lattice.
A new snowflake falls, it hits the snowpack in a way that shakes loose a few other snowflakes, those snowflakes begin to slide, the slide gains momentum, soon the entire snowpack rips loose from the mountain and buries the village below.
I think we have a fairly good idea now what that snowflake is.
But in Aftermath, you’ll get a vivid picture of what the avalanche might look like while it’s in motion through the rest of this year and next.
Specific ways to make sure it doesn’t take your wealth with it.
What the world could look like when the snow-dust settles.
I can think of no other more vital book to have in your hands right now.
I’d like to personally mail you a physical copy of Aftermath: Seven Secrets of Wealth Preservation in the Coming Chaos.
All I ask in return is that you take a subscription — with a no-obligation, 30-day trial period — of our newsletter, Jim Rickards’ Strategic Intelligence Australia.
This is absolutely a ‘try before you fully commit to a subscription’ deal.
We don’t want you locked into anything before you’ve had time to go over the entire archive and live recommendation portfolio.
You’ll have 30 days to do that. Then, if you don’t wish to stay with us, simply let us know and we will cancel your subscription for a full refund.
Even if you do that, you can keep your personal physical copy of Aftermath, with Jim’s and my compliments.
I really think you’ll stick with us though.
The official subscription price is just $149 a year.
Given everything I’ve shown you about Jim, the contacts he has, and the controversial calls he’s got spot on, $149 is a paltry sum to have his ongoing guidance in 2020 and beyond.
Especially when it gets you Aftermath.
Just $69 will get you Aftermath, and a full 12 months of Jim Rickards’ Strategic Intelligence Australia.
Should you stay on for year two, you’ll be renewed at the official price of $149, unless we hear from you.
Think about that price.
That’s virtually nothing.
Think about the stakes here.
As Jim says in the book, ‘the coming crisis is as predictable as spring rain.’
You know it’s coming.
You just might not realise the magnitude. Or what you need to be doing now to protect yourself.
Aftermath will educate you on that.
Strategic Intelligence will be your guide to turn to as it all unfolds.
With our guarantee that you can read and keep the book, scour the archive for every current Strategic Intelligence Australia recommendation, and STILL receive a refund of the $69 if you’re so inclined…
…I would say this should be a fairly easy decision for you.
There’s one more essential add-on you’ll receive if you take a trial right now.
Something you cannot buy on Amazon, Booktopia or in Dymocks…
The coming reset will bring to a catastrophic end the biggest and longest bull market in American stock market history.
Check this chart out…
In the bulk of Aftermath, Jim examines what the end of this bull market might look like on a global scale.
But when it comes to analysing the implications of this new global downturn…and potential currency reset…Australia is by far the most interesting country in the world. And I can’t wait to explain why.
That’s why I’ve contributed a bonus chapter to Aftermath, designed to bring Jim’s message home to Australia specifically.
To start, very simply, we happen to have a whole load of very good gold mining companies. Miners who produce gold here in Australia and sell their production at the Aussie dollar gold price.
At the time of writing, this price is trading at record highs of around $2,500 per ounce. Average total costs for well-run miners are around $1,300 an ounce (although they obviously differ individually). So that’s a whopping $1,200 margin per ounce of production.
Obviously, if gold is just at the start of a mega bull market (as Jim and I believe), that margin can only get better, which could be a huge factor in their favour.
Even more favourable for gold miners now is the plunging oil price. Energy makes up a large proportion of costs for gold miners. A combination of declining costs and rising revenue works wonders on profit margins.
The market, in full panic mode, has been selling these stocks along with the rest. And while gold mining stocks can be highly volatile and risky, we believe that’s an irrational, short-sighted move. I would guess that the Aussie gold sector could be one of the most successful on the planet in the early 2020s.
But what about the wider economy?
How would our economy react in a global reset scenario?
Today, Australia’s fate is determined by three things when it comes to a future currency reset. Our geopolitical position as allies of the UK and US. Our economic ties to Asia. And, most importantly, our commodity-driven economy.
You probably noticed those also happen to be the three most important factors in determining Australia’s general welfare, regardless of any currency reset.
That’s why I say Australia is the most interesting nation to think about when it comes to a currency reset. More is at stake here than just about anywhere, because currency resets specifically affect those things, which Australia relies on for its prosperity and security.
Do we have the same protections that allowed us to avoid a recession in 2008?
Would our government have a seat at the table when Reset 2020 is hashed out?
How would our Big Four banks…already under siege…hold up during a global monetary reset event? (I’ll even let you in on something very few Aussies know…that the Fed actually ‘rescued’ some of our banks during the last GFC…)
Will our economic ties to China be a help or a hindrance as this
all plays out?
What are some Australia-specific ways to protect yourself?
And what are some Australia-specific investments that could actually thrive when everything else is falling? (You’ll see I’ve identified five.)
I answer those questions in BONUS CHAPTER: Aftermath Australia.
You could even posit that THIS CHAPTER ALONE is worth $69, let alone the whole book and 12 months of Strategic Intelligence.
Related to this, there’s a final report I want to place in your hands if you take this subscription with a no-obligation trial today. It was published several months ago, but is now looking more prescient than ever. It’s called:
Now, fair admission:
This report was written a good six months before coronavirus.
But it’s still a brilliant dissection of where we stand in the situation. It was precarious for Australia before the virus. It is even more so now.
As you’ll see, the coming crisis is going to impact two key pillars of Australia’s economy: Resources and housing.
In short, Australia stands to lose a whole lot.
This report will detail how Trump’s policies have set in motion a domino effect that branches out in three specific ways.
Put together, they deliver a simple conclusion: Australia is in deep trouble.
First, we’ll look into just what Trump and his enemies have planned for each other. Blow by blow, the conflict is escalating fast.
Australia won’t be able to avoid the fallout from the crisis this time. Economies are global. Your neighbour’s problem is your problem too.
Entire nations will be unable to repay their vast stacks of US dollar-denominated debts. And those nations are Australia’s key trading partners.
And what about the bigger geopolitical picture? To say Australia is between a rock and a hard place is an understatement.
China, its biggest trading partner, is squaring off with the US, its most important ally. Faced with choosing between its economy and security, which way will Australia’s politicians turn?
But don’t worry about these threats too much. After all, the world’s central bankers are standing at the ready to bail everyone out, right?
Not this time.
You’ll see in Aftermath that, in fact, the exact opposite is the case.
They’re preparing to hang us all out to dry.
‘Sell Australia’ is a chilling look at what that might mean for ‘the Lucky Country’.
Dr. Pippa Malmgren used to be part of America’s Plunge Protection Team.
The officially named Working Group on Financial Markets looked into market crashes…and how to prevent them getting out of hand.
They also helped draft statements for policy officials intended to move markets.
In other words, she’s no conspiracy theorist or alarmist — quite the opposite. She worked at the pointy end of government intervention in financial markets. And these days, that’s all that matters to financial markets.
Her incredibly well-informed past makes this quote from her Macro Voices podcast interview rather startling:
‘You have got to understand if the size of your debt problem is so big that it can’t be paid off, and in fact even inflation, which is the usual way you would seek to default on your debt slowly over time, you can’t get enough inflation generated, then there is one further option.
‘And that is you literally abandon the entire system of money, and accounting. I know that sounds unbelievably radical, but we have seen it happen before.’
There you have it. A currency system reset is going mainstream. What is very surprising is that a government insider is starting to talk about it.
That was a major break, even before the virus.
And now, finally, after all these years, we have the spark: A global pandemic.
Just so you’re crystal clear: The Washington Post reports that America is now going into the most abrupt and widespread slowdown in economic activity in all of history.
The world’s second largest economy, China, could even be in worse shape, but the data out of there is sketchy.
Europe. Locked down. Shuttered. On life support. Something big is on the cards here.
Two final pieces of advice.
If you haven’t already, build yourself a ‘Financial Pandemic Shelter’. (Aftermath gives you some tactics.)
And don’t expect those with power to ignore a good crisis.
Instead, keep your eyes peeled for the next reset.
Arm yourself with the right knowledge. Click on the link below. And be ready for what happens next.
Thanks for reading.
Managing Editor, Strategic Intelligence Australia
You pay just $69 today (discounted from $149). After that order is processed, your physical copy of Aftermath: Seven Secrets of Wealth Preservation in the Coming Chaos will be mailed to you.
You will receive the exclusive online bonus chapter called Aftermath Australia.
You will get access to the full archive and buy recommendations of Jim Rickards’ Strategic Intelligence.
And you will receive ‘SELL AUSTRALIA! How to Get Your Money ‘Off-Grid’ Ahead of the Greatest Australian Financial Crisis Since the 1930s’.
All that, for $69. You can get that $69 refunded within 30 days if you wish. And even if you do that, you can keep your physical copy of Aftermath, with our compliments.
As with anything, there are no certainties here.
Jim is merely going through the same predictive process he used in forecasting Trump and Brexit: Using specific models…and refreshing the output with continual updates from new data.
And then overlaying that with anecdotal info gathered from Jim’s numerous connections in the upper echelons of politics and finance.
None of this is an exact science.
But know this: These resets happen regularly. When they do happen, they can create and destroy massive amounts of wealth. And we are well overdue one…
Herbert Stein, a prominent economist and adviser to presidents Richard Nixon and Gerald Ford, once remarked, ‘If something cannot go on forever, it will stop.’
The fact that his remark is obvious makes it no less profound. Simple denial or wishful thinking tends to dominate economic debate.
Stein’s remark is like a bucket of ice water in the face of those denying the reality of non-sustainability. Stein was testifying about international trade deficits when he made his statement, but it applies broadly.
Current global debt levels are simply not sustainable. Debt actually is sustainable if the debt is used for projects with positive returns and if the economy supporting the debt is growing faster than the debt itself.
But neither of those conditions apply today.
Debt is being incurred just to keep pace with existing requirements in the form of benefits, interest and discretionary spending.
It’s not being used for projects with long-term positive returns such as interstate highways, bridges and tunnels; 5G telecommunications; and improved educational outcomes (meaning improved student performance, not teacher pensions).
And developed economies are piling on debt faster than they are growing, so debt-to-GDP ratios are moving to levels where more debt stunts growth rather than helps.
It’s a catastrophic global debt crisis (worse than in 2008) waiting to happen. What will trigger the crisis?
That’s open for debate.
In Jim’s opinion, what’s not up for debate (by any sane individual) is that a giant reckoning of some sort is coming.
Aftermath shows you what that might look like. And how to prepare for it.
Jim believes the world is on the knife edge of a debt crisis not seen since the 1930s. It won’t take much to trigger the crisis. And it is very likely a global monetary reset will happen as a result.
Aftermath examines what that will mean, and how you can prepare.
But Jim Rickard’s Strategic Intelligence will monitor how it all unfolds in real time.
You will receive monthly issues from Jim, with me (Nick Hubble) providing an Australian perspective and specific investment recommendations where applicable. You’ll also receive weekly updates, because the current situation is extremely fluid.
Put simply: Our aim in 2020 is to be the most potent and predictive financial newsletter on the planet.
Despite what many will tell you, stock market behaviour has become remarkably easy to predict lately. Stocks go up when the Fed cuts rates or indicates that rate cuts are coming. Stocks also go up when there’s good news on the trade war front, especially involving a ‘phase one’ mini-deal with China.
Stocks go down when the trade war talks look like they’re breaking down. Stocks also go down when the Fed indicates it may stop raising rates or actually goes on ‘pause’.
Good news (rate cuts in July, September and October last year, and good prospects on the trade wars) has outweighed bad news, so stocks have been trending higher. You don’t have to be a superstar analyst to figure this out.
Stocks are in bubble territory, based on weak earnings, and have been propped up by expected good news on trade.
The other driver is FOMO — ‘fear of missing out’ — which can turn to simple fear in a heartbeat.
Get ready. It’s going to happen. Jim Rickards’ Strategic Intelligence will guide you through the storm.
As explained above, it’s pretty simple.
$69 gets you a full year of Jim Rickards’ Strategic Intelligence. Plus a physical copy of Aftermath and a host of other special investment reports.
If, for whatever reason, you don’t want to stay on as a subscriber, no problem. You’ve got 30 days to try everything out. Just contact us within 30 days and we’ll give you a full refund of that $69. We’ll even let you keep Aftermath if you do that.
The phone number is 1300 029 501.
If you enjoy and appreciate Jim’s analysis in Strategic Intelligence, and wish to stay on, do nothing and you’ll be renewed at the official price of $149 after 12 months.
James Rickards is Chief Global Strategist at West Shore Funds, Editor of Strategic Intelligence and Director of The James Rickards Project, an inquiry into the complex dynamics of geopolitics and global capital.
He is the author of New York Times bestseller The Death of Money (Penguin, 2014) and national bestseller Currency Wars (Penguin, 2011).
He is a portfolio manager, lawyer and economist, and has held senior positions at Citibank, Long-Term Capital Management, and Caxton Associates.
In 1998, he was the principal negotiator of the rescue of LTCM, sponsored by the Federal Reserve.
His clients include institutional investors and government directorates.
He is an op-ed contributor to the Financial Times, The Evening Standard, The New York Times and The Washington Post, and has been interviewed by the BBC, CNN, NPR, C-SPAN, CNBC, Bloomberg, Fox and The Wall Street Journal.
Jim is also a visiting lecturer in globalisation at the Johns Hopkins University and the School of Advanced International Studies, and has delivered papers on risk at Singularity University, the Applied Physics Laboratory, and the Los Alamos National Laboratory.
He is an adviser on capital markets to the US intelligence community and the Office of the Secretary of Defense.
Nickolai Hubble is the editor of Jim Rickards’ Strategic Intelligence Australia and chief strategist of The Fleet Street Letter Monthly Alert.
After finishing his degrees in finance and law at Bond University in Australia in 2009, working for an investment bank didn’t seem so enticing any more. An internship with his scholarship provider Goldman Sachs during the height of the financial crisis was quite enough of that.
Instead, Nick went to work for the company which allows its analysts to predict the financial crises that investment bankers cause. The Agora is a network of publishing businesses dedicated to bringing you ideas that are too controversial to get a hearing in the mainstream press. And that’s where Nick found a very comfortable home.
In 2012, Nick exposed the subprime practices of Australian banks to his readers at The Money for Life Letter. His accusations that bankers and mortgage brokers routinely manipulate their customers’ loan applications were vindicated by a Royal Commission in 2018.
In 2018, Nick predicted Italy’s budget battles would lead to ‘Bloody October’ and successfully warned his subscribers about the worst period in financial markets since 2008. In August 2019, he compiled his predictions into a book called How the Euro Dies.