Rickards, gold, and interest rates


A reader sent me a link to the following:

Countries Creating Shadow Gold Standard to Prepare for Economic Collapse – Rickards
Speaking to MarketWatch, author and financial analyst Jim Rickards explained that a number of central banks are acquiring gold to prepare for a global monetary reset.

“Author James Rickards maintains that gold remains the real underpinning of the international monetary system. Governments may disparage it, he says, yet many of them have held on to gold — and China and Russia have been acquiring more…

“’The crisis in 2008 was centered around “too big to fail” banks. Since 2008, those same banks have grown larger, control a larger percentage of all banking assets in the U.S., and have much larger derivatives books. This makes the risk of collapse and the potential size of the collapse much greater than anything seen since the Great Depression, perhaps longer. Meanwhile, little of the policy support used in 2008-2009 has been withdrawn. This means that the risk of collapse is greater and the means to truncate collapse are used up and not available…

“’The U.S. will default on this debt by inflation (it’s the American way)… Countries around the world are acquiring gold at an accelerated rate in order to diversify their reserve positions. This trend, combined with the huge reserves held by the U.S., Eurozone and the IMF amount to a shadow gold standard…

“’China, like Russia, is acquiring gold so that they have a comparable ratio to the U.S. and Europe. This ratio will be critical when the monetary system collapses since it will form the basis for any monetary reset and the new ‘rules of the game.’ In any monetary reset, countries will come together and sit around the table. One can think of that meeting as a poker game. When you sit down at the poker table, you want a big pile of chips. Gold functions like a pile of poker chips in this context. This doesn’t mean that the world automatically goes to a gold standard. It does mean that one’s voice at the table is going to be a function of the size of its gold hoard… These major gold powers are already preparing for this outcome.’”  (“Gold is the pile of poker chips in the next global crisis,” MarketWatch, 4/5/16.)

In a separate interview with Fox Business, Mr. Rickards offered another critical reason why investors should own physical gold:

“’There are new reasons to have gold, which I talk about in the book, 21st century reasons. [Russian President] Vladimir Putin has a 6,000-member cyber brigade working night and day to erase digital wealth… The thing about gold, you can’t hack it, you can’t erase it, you can’t delete it. It’s tangible,’ Rickards said….” (“Investing in Gold: You Can’t Hack it, Erase it or Delete it,” Fox Business, 4/5/16.) https://www.goldline.com/charts-news/industry-news/countries-creating-shadow-gold-standard-prepare-economic-collapse-%E2%80%93?utm_source=weekinreview&utm_medium=email&utm_campaign=160409#a1

I have written about gold in the past (see The Plain Truth About Gold in Prophecy. How Should a Christian View Gold?) and even did a video related to Jim Rickards:

Project Prophecy: Economic Collapse Starting in 2015?

Jim Rickards once worked for the CIA and also was once part of a a USA government program called called ‘Project Prophecy.’ He has a video were he claims that starting in 2015, the USA may have economic collapse resulting in a 25-Year Great Depression. He mainly cites debt figures and claims advises alternatives to the USA dollar which he says will collapse? What did Rand Paul state? Can the USA dollar collapse? Does anything he advises agree with Bible prophecy? What does the Bible show is coming? Does the Bible show a future collapse of the USA dollar? What about the Euro, silver, or gold? Dr. Thiel addresses these.

As far as gold goes, while I would not describe myself as a ‘gold bug’ (and suspect it may go down in value after the ‘peace deal’ of Daniel 9:27 is in place), the Bible does show that gold will have value before and after the USA is destroyed:

36 “Then the king shall do according to his own will: he shall exalt and magnify himself above every god, shall speak blasphemies against the God of gods, and shall prosper till the wrath has been accomplished; for what has been determined shall be done. 37 He shall regard neither the God of his fathers nor the desire of women, nor regard any god; for he shall exalt himself above them all. 38 But in their place he shall honor a god of fortresses; and a god which his fathers did not know he shall honor with gold and silver, with precious stones and pleasant things. 39 Thus he shall act against the strongest fortresses with a foreign god, which he shall acknowledge, and advance its glory; and he shall cause them to rule over many, and divide the land for gain.

40 “At the time of the end the king of the South shall attack him; and the king of the North shall come against him like a whirlwind, with chariots, horsemen, and with many ships; and he shall enter the countries, overwhelm them, and pass through. 41 He shall also enter the Glorious Land, and many countries shall be overthrown; but these shall escape from his hand: Edom, Moab, and the prominent people of Ammon. 42 He shall stretch out his hand against the countries, and the land of Egypt shall not escape. 43 He shall have power over the treasures of gold and silver, and over all the precious things of Egypt; also the Libyans and Ethiopians shall follow at his heels. (Daniel 11:36-43)

The USA is the power with the strongest fortresses (vs. 39), and notice that gold still has value after it is destroyed and its lands divided. By the way, note that it is a European power that prizes and ends up with the gold of Egypt above.

What about interest rates?

Because as the world’s primary reserve currency, the USA can just electronically create (counterfeit) money, it has been able to manipulate  interest rates.

Notice something about that from a writer affiliated with the investment broker Charles Schwab:

 “How can the Federal Reserve raise interest rates when our debt is so high? Won’t higher rates just add to the burden?”  …

he CBO projects that, under current budget laws, government spending will rise 5% per year over the next decade while revenues will grow by only 4%. As a result, the annual deficit is projected to rise to 4.9% of GDP by 2026, compared with 2.9% of GDP in 2016.

Higher deficits will add to the debt, with the amount of debt held by the public projected to increase to 86% of GDP. That would be the highest since 1947, and more than twice the long-term average of 40% of GDP. …

Impact of rising interest rates

So how would higher interest rates affect all this? To start, higher rates would mean the federal government would have to pay more interest to Treasury security holders, and the resulting higher interest costs would add to the deficit and accumulated debt.

The CBO assumes the average interest rate the government pays on debt held by the public will increase from 1.7% in 2015 to 3.5% by 2026. It also projects a sharp rise in interest rates, with the average rate on three-month Treasury bills rising from 0.5% in 2016 to 3.2% a decade later. It sees the average rate on 10-year Treasuries rising from 2.6% to 4.1%. …

The combination of rising interest rates and declining remittances from the Fed could help push overall interest costs from $223 billion in 2015 to $839 billion in 2026. Relative to the size of the economy, that would increase interest costs from 1.3% of GDP to 3% of GDP over the next decade. …

A rising debt load is a risk factor for the economy, but we don’t see it affecting the path of Fed policy. http://www.schwab.com/public/schwab/nn/articles/Will-Rising-U-S-Debt-Levels-Keep-the-Fed-On-Hold?cmp=em-QYB

Notice that the above indicates that what is happening is bad, is planned to get worse, and although this is increasing risk, the Fed and the government plan to go down a dangerous path.

I would contend that the analysis is much too optimistic.

What happens if interest rates get back to more inflationary, or even more historical, levels?

Well, it will be ‘game over’ for the US dollar.

Interest costs will exceed all US tax revenues.  And perhaps rise to exceed the total output of the entire USA. This will crash the value of the US dollar, which is why some believe that gold is the answer.  But of course, governments have confiscated gold in the past and likely will again in the future.

There will be ‘bumps in the road’ until the Europeans (Daniel 2:41-43) and others are able to replace the USA dollar. There even could be an extended time that the USA dollar will remain on top.

But that will change quickly.

Notice what the Bible prophesies:

3 For when they say, “Peace and safety!” then sudden destruction comes upon them, as labor pains upon a pregnant woman. And they shall not escape. 4 But you, brethren, are not in darkness, so that this Day should overtake you as a thief. (1 Thessalonians 5:3-4)

2 And the Lord answered me:

“Write the vision;
make it plain on tablets,
so he may run who reads it.
3 For still the vision awaits its appointed time;
it hastens to the end—it will not lie.
If it seems slow, wait for it;
it will surely come; it will not delay.

4 “Behold, his soul is puffed up; it is not upright within him,
but the righteous shall live by his faith.

5 “Moreover, wine is a traitor,
an arrogant man who is never at rest.
His greed is as wide as Sheol;
like death he has never enough.
He gathers for himself all nations
and collects as his own all peoples.”

6 Shall not all these take up their taunt against him, with scoffing and riddles for him, and say,

“Woe to him who heaps up what is not his own—
for how long?—
and loads himself with pledges!”
7 Will not your debtors suddenly arise,
and those awake who will make you tremble?
Then you will be spoil for them.
8 Because you have plundered many nations,
all the remnant of the peoples shall plunder you,
for the blood of man and violence to the earth,
to cities and all who dwell in them. (Habakkuk 2:2-8; English Standard Version)

The arrogance of political leaders in increasing the debt and manipulating interest rates will not happen forever. The USA is the most indebted nation in the history of humanity and those in it should try to understand this prophecy.

Those who think the current world order with the USA’s dollar on top will last through the end of this century are in error. Many distrust it, and the time will come when creditors will rise up.

Some items of possibly related interest include the following:

Anglo – America in Prophecy & the Lost Tribes of Israel Are the Americans, Canadians, English, Scottish, Welsh, Australians, Anglo-Saxon (non-Dutch) Southern Africans, and New Zealanders descendants of Joseph? Where are the lost ten-tribes of Israel? Who are the lost tribes of Israel? What will happen to Jerusalem and the Jews in Israel? Will God punish the U.S.A., Canada, United Kingdom, and other Anglo-Saxon nations? Why might God allow them to be punished first? Here is a link to the Spanish version of this article: Anglo-América & las Tribus Perdidas de Israel. Information is also in the YouTube sermons titled Where are the Ten Lost Tribes? Why does it matter? and British are the Covenant People. A short YouTube of prophetic interest may be Barack Obama and the State of the Apocalypse.
Will the Anglo-Saxon Nations be Divided and Have People Taken as Slaves? Will the lands of the United States, United Kingdom, Canada, Australia, and New Zealand be divided? What about Jerusalem? What does Bible prophecy teach? Are there non-biblical prophecies that support this idea? Who will divide those lands? Who will end up with the lands and the people? Here is a link to a video titled Will the USA and other Anglo-nations be Divided and Their People Made Slaves? Here is a related item in the Spanish language ¿Serán divididas las naciones anglosajonas?
British are the Covenant People What do ‘British’ and ‘Britain’ mean in Hebrew? Are the descendants of the Anglo-Saxons people of the covenant? Does the British royal family connect to the throne of David? What does the Bible teach? What does history show us? Is there any DNA evidence related to British-Israelism? When did Christianity make it to the British Isles? Could Jeremiah have made it to the British Isles? What type of Christians made it to the British Isles? Did the last King of England believe in British Israelism?
When Will the Great Tribulation Begin? 2016, 2017, or 2018? Can the Great Tribulation begin today? What happens before the Great Tribulation in the “beginning of sorrows”? What happens in the Great Tribulation and the Day of the Lord? Is this the time of the Gentiles? When is the earliest that the Great Tribulation can begin? What is the Day of the Lord? Who are the 144,000? Here is a version of the article in the Spanish language: ¿Puede comenzar la Gran Tribulación en 2016 o 2017? ¿Es el Tiempo de los Gentiles? You can also see the English language sermon video: The Great Tribulation from the Mount of Olives.
Protestant and Church of God views of the United States in Bible Prophecy Is the USA mentioned in Bible prophecy? Some Protestants say yes, while others say no. What does the Bible really teach? Learn the truth about this. There is also a video available: Is The United States Mentioned In Bible Prophecy?
Physical Preparation Scriptures for Christians. We all know the Bible prophecies famines. Should we do something? Here is a version in the Spanish language Escrituras sobre Preparación física para los Cristianos.
The Plain Truth About Gold in Prophecy. How Should a Christian View Gold? What do economists and the Bible teach about gold? Gold and silver may drop in value. Inflation/deflation? What do Christians need to know about gold?
Who is the King of the North? Is there one? Do biblical and Roman Catholic prophecies for the Great Monarch point to the same leader? Should he be followed? Who will be the King of the North discussed in Daniel 11? Is a nuclear attack prophesied to happen to the English-speaking peoples of the United States, Great Britain, Canada, Australia, and New Zealand? When do the 1335 days, 1290 days, and 1260 days (the time, times, and half a time) of Daniel 12 begin? When does the Bible show that economic collapse will affect the United States? Here is a link to a video titled: The Future King of the North.
The Gospel of the Kingdom of God This free online pdf booklet has answers many questions people have about the Gospel of the Kingdom of God and explains why it is the solution to the issues the world is facing.
Just What Do You Mean the Kingdom of God? A booklet that was written by Herbert Armstrong answers questions about the Kingdom.
Who is the King of the West? Why is there no End-Time King of the West in Bible Prophecy? Is the United States the King of the West?
Hillary Clinton, Prophecy, and the Destruction of the United States-Amazon Kindle edition. This electronic version of the 188 page print edition is available for only US$3.99. And you do not need an actual Kindle device to read it. Why? Amazon will allow you to download it to almost any device: Please click HERE to download one of Amazon s Free Reader Apps. After you go to for your free Kindle reader and then go to Hillary Clinton, Prophecy, and the Destruction of the United States-Amazon Kindle edition.
Barack Obama, Prophecy, and the Destruction of the United States-Second Edition for Second Obama Term This is a 160 page book for people truly interested in prophecies related to Barack Obama and the United States, including learning about many that have already been fulfilled (which the book documents in detail) and those that will be fulfilled in the future. It also has a chapter about a Republican choice. This book is available to order at www.barackobamaprophecy.com. The physical book can also be purchased at Amazon from the following link: Barack Obama, Prophecy, and the Destruction of the United States: Is Barack Obama Fulfilling Biblical, Islamic Catholic, Kenyan, and other America-Related Prophecies? What About Republican Leaders? Second Edition for Second Obama Term.
Barack Obama, Prophecy, and the Destruction of the United States-Second Term-Amazon Kindle edition. This electronic version is available for only US$2.99. And you do not need an actual Kindle device to read it. Why? Amazon will allow you to download it to almost any device: Please click HERE to download one of Amazon s Free Reader Apps. After you go to for your free Kindle reader and then go to Barack Obama, Prophecy, and the Destruction of the United States-Second Term-Amazon Kindle edition.

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