SDR - New World Money

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Jim Rickards explains why a large Chinese yuan devaluation is inevitable, and why this will likely result in a destructive trade war between the US/Trump and China. He says this is what happened in the 1930s, when a currency war led to a trade war. So we're likely looking at a train wreck, with China as the catalyst.

He says that while the Fed's tightening plans will be a modest headwind for gold prices in the near term, there is the growing possibility of a 'failure to deliver' event which would start a gold buying panic.

He also points out that 5 of the 7 seats on the Federal Reserve Board of Governors will be up for replacement in the next 16 months - two seats are currently vacant, another Governor just announced his retirement effective most likely in April, and Janet Yellen's term expires next January, and Vice Chairman Stanley Fischer's term is up in mid 2018. So this is an unprecedented situation at the Fed, and Trump and Sec of Treasury Mnuchin will likely be able to get what they want, which they've said is a weaker dollar. This means Trump will likely appoint interest rate 'doves' onto the Fed's Board, in which case gold would soar. So he's very bullish on gold going into the 2nd half of 2017.

Concerning the upcoming elections in Europe, Rickards thinks that while the Nationalists will increase their influence, it won't be enough to dislodge control from the more moderate Parties, so the EU will remain intact.