Gold is the secret weapon in the worldwide financial war, Rickards tells King World News
10a Saturday, July 9, 2011
Dear Friend of GATA and Gold (and Silver):
A "full-scale financial war" is raging around the world and gold is the secret weapon, geopolitical analyst James G. Rickards tells King World News today.
Rickards says China's new gold exchange is retaliation for the refusal of the United States to restrain paper currency and help control inflation. He agrees that the exchange has the potential to explode demand for gold.
As for the proposal for Switzerland to create a "parallel" gold-backed franc, Rickards says it would create a massive case of Gresham's Law, where everyone would dump the unbacked franc for the gold-backed franc. Indeed, Rickards says, the first country that goes to a gold-backed currency will have the only currency anyone wants, the strongest currency in the world. Swiss legislators, he adds, can't possibly understand the global implications of the proposal.
Holes in the fiat currency dike are popping out all over the place, Rickards says, and in the face of the collapse of their paper currencies, governments will either have to convert their currencies to gold or resort to unprecedented coercion, outlawing gold or punitively taxing it and imposing capital controls.
As usual Rickards has thought things through far more extensively than most analysts. You can listen to his interview at the King World News Internet site here:
http://kingworldnews.com/kingworldnews/Broadcast/Entries/2011/7/9_Jim_Ri...
Rickards will speak at GATA's Gold Rush 21 conference in London in August:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
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