Jim Rickards: They're Going To Lock Down The System

This week, seasoned financier, risk manager and author Jim Rickards returns to the program to share the predictions from his new book The Road To Ruin: The Global Elite's Secret Plan For The Next Financial Crisis

Rickards warns of a coming confidence boundary in central bank omnipotence. Once breached, trust and belief in the central banking cartel quickly vaporizes. Rickards predicts that boundary will be crossed by 2018 or sooner; and when it is, the entire financial system will go into lockdown, freezing access to our money:

Here’s the point. In 1998, Wall Street bailed out a hedge fund (LTCM). In 2008, the central banks bailed out Wall Street. In 2018, if not sooner, who’s going to bail out the central banks? The central banks are at the point where they don’t have any dry powder left.

By way of example, the Fed took their balance from $800 billion to $4.2 trillion and cut interest rates to 0%. Now, if they had normalized things in the meantime, so let’s say they got their balance sheet back down to $800 billion or maybe one trillion dollars and raised interest rates up to 2 or 3%, I’d be the first one to congratulate them. I’d say, “Hey, nice going. You saved the world and you normalized your balance sheet and normalized interest rates.” But, that didn’t happen. The balance sheet is still at $4 trillion, interest rates are still close to 0%. What are they going to do in the next crisis? Take the balance to $8 trillion, $12 trillion? They can’t do it. There’s an invisible confidence boundary. No one knows exactly where it is -- you find out the hard way. And when you cross it, you destroy confidence in the dollar. 

The only clean balance sheet left in the world is at the IMF, the International Monetary Fund. And, that’s where the liquidity will come from in the next crisis. They have a printing press. They can print this world money called a geeky name: the special drawing right, or the SDR. But just think of it as 'world money', because that’s what it is. So, the Fed has a printing press; they can print dollars. The European Central Bank has a printing press; they can print euros. The IMF has a printing press; they can print SDRs. An SDR is not backed by anything, it’s just this kind of world money. That’s where the liquidity will come from, with an important difference. The IMF is not that nimble. It will take six to eight months. Last time it took 11 months, maybe they can do it faster. But, it’ll take a few months to print this new world money.

In the meantime, if the central banks are tapped out and the IMF is taking six months or so to issue the SDRs to reliquify the system, what are the elites going to do in the meantime when they can’t print the money? They’re going to lock down the system. Money market funds are going to spend redemptions. Banks are going to be closed. ATMs will be reprogrammed so you can get max $300 a day for gas and groceries. Stock exchanges will close. By the way, all this has happened before. None of what I’m talking about is new. It has all happened before.

So, in 1998, the Fed printed the money and gave it to you. In 2008, they printed the money and gave it to you. In 2018, if not sooner, they’re not going to able to print the money, they’re not going to let you have your money. Instead, they’re going to lock down the system. 

Click the play button below to listen to Chris' interview with Jim Rickards (35m:25s).

This is a companion discussion topic for the original entry at https://peakprosperity.com/jim-rickards-theyre-going-to-lock-down-the-system/


A great case for having some of your wealth outside of the financial system. However it is not full proof. The lock down will extend to other asset classes. For example, tax imposed on precious metals ownership and trading; a wealth tax imposed on property and land holdings. Just two that spring instantly to mind.
Interesting that Jim thinks that there is another ‘kick it down the road’ cycle left to come via the creation of SDR liquidity. What happens after this runs it course (2028 !!) ? Do we accept once and for all that growth is dead and are in full blown energy descent ? Will we use world war as the next liquidity driver ?

There is no legal base to tax gold or silver exceptionally.  And there will be outrage and worse if what you say is executive ordered.   Paying attention to this Presidential Election?

I will leave finance to those more attuned to it though it is vital to myself and many others.
There is much for us to attend to these days.  I suspect the danger of solar storms for example may be high and the security of continuing electricity, telecomms, and internet is more vulnerable than we might want to believe for different reasons.

Since my main strength (admittedly dubious ) may be finding diversions to unpleasant, tedious, or downright terrifying reality, I'm inserting a note here ( I am also an alarmist ) in case the clocks should stop before they might be expected to.

It's about how we got to here and the fact that we may have plenty of time to read ( if only by daylight ) in the future. 

I'm recommending the works of Llyod Pye, such as " Everything You Know is Wrong", at lot of which seems to be based on Zecharia Zitchin's works. You can whip me to death if I'm wrong ( possible) but you may have other things to worry about. Liyod Pye can be found on Youtube giving an animated lecture. Normal books you can hold in your hands and smell will work better. 

I'm now going to think about Jim's book ( excuse me Jim ).

PS I'm relying on Arthur or somebody competent to post the relevent videos. The subject matter should be right down your street Arthur!  And a little reading up on history won't hurt when we're back in the Stone-Age.  Kinda.


The only "sustainable culture",according to Derrick Jensen.
obtw, his two volume set "ENDGAME", is quite good.

Quinn, our filly is asserting her independence, time in the round pen is proving successful.

Ha ha. Sure they wouldn’t dare. Wishful thinking on your part.

Just like Alice, I like to explore all sorts of rabbit holes Cornelius. Very occasionally this approach yields a diamond.  Mostly I emerge empty handed.
There is a lot of schizophrenia in the world. I anticipate more, as stress takes its toll. Bear in mind that schizophrenia has both positive and negative effects. As Dr. Iain McGilchrist warns us, nermals rely too much on their models which leads them into his hall of mirrors, where they know more about what they know, about what they know.  .  .  . (Yes Gladys, it is a pathology.)

And that is the evolutionary role of schizophrenia, to break the mold. As Horrobin notes, before modern humans emerged it was boring. Now we can pin point a historical dig almost to the year because our artifacts change so frequently.

Which leads us to the matter on hand. Rickards is describing just such a transition to a new monetary system. Should we relax and enjoy the ride? Your response to this transition is in your hands. My response is to hang loose and enjoy this early morning coffee.

And then I have things to do. I have to fix the string thingies on my yacht.

Those whom the Gods would destroy or create they first make mad.

Since my neck is already on the block I'm reminded it's customery to give the executioner a silver coin to concentrate on what he's doing.  Therein hangs a tale: remember the suspicions that the gold in Fort Knox might not be there etc…  Mad stuff, but it gets worse.  By now we should realize that certain individuals in celestial realms prefer to be paid off with what J. P. Morgan called real money.  Apparently, they are ok with the executioner and ourselves using the silver stuff but they have their own uses for the g word.
Having already said too much I now await termination, not necessarily by the site moderators, and I'm only half - joking !

Since my neck is already on the block I'm reminded it's customery to give the executioner a silver coin to concentrate on what he's doing.  Therein hangs a tale: remember the suspicions that the gold in Fort Knox might not be there etc…  Mad stuff, but it gets worse.  By now we should realize that certain individuals in celestial realms prefer to be paid off with what J. P. Morgan called real money.  Apparently, they are ok with the executioner and ourselves using the silver stuff but they have their own uses for the g word.
Having already said too much I now await termination, not necessarily by the site moderators, and I'm only half - joking !

I remember withdrawing a large sum of money from my bank in the USA and it was exactly the scenario that Mr Rickards describes in this interview - right down to the teller's face going white.   And that was about 15 years ago!
While the Bank of Japan can't get the yen to go down fast enough through it's rate chopping, the people here stash cash at home.  Sales of home safes have soared in recent years in Japan and the BofJ has had to greatly increase the number of ¥10,000 notes (similar to $100 bills in the US) it prints each year in order to cover the increasing demand for cash.  An estimated 40 trillion yen - about 38 billion US dollars - is held in cash in Japan.

The BofJ buys stocks, bonds, and indirectly buys real estate.   The bubble in big city housing is estimated by some to be headed for a 20% correction in the next year or two.   Meanwhile, real estate across the country has been declining in price by around 4% per year over decades due in part to the flat economy, in part to the declining population, and also in part due to the continuing migration from farms to cities.

For those moving to cities it isn't good news, but for those who want to live a more rural life, it just keeps getting better.

Perhaps I should have added that I have also made large-ish (for me anyway) cash withdrawals from banks in Japan in recent years (even from ATM machines).   No whispers between teller and manager, no paperwork, just the same politeness one experiences with every business in this country.  The ATMs will crank out whatever amount you can cover, limited only by the ATM owner to how much cash they want to keep in the machine (typically they will allow withdrawals of up to 1 million yen) or up to whatever limit you placed yourself on your own card.
Of course, being the proud holder of a US Passport, I get to fill out paperwork every year to FINCEN reporting every foreign bank account I have in the entire world and the maximum balance it had for the year.  Uncle loves his nieces and nephews and follows us every where we go.

Of course, if we don't keep our assets in banks or other reportable accounts, there can be nothing to report.  I don't want to be poor, but there are advantages to being not too wealthy.

So Jim  think there a money mess every ten years or so,give or take a year or 2 .No matter how hard I try, not ready. Lets all hope that it is in 2 years.For every 2 steps I go forward 1 back.


I don't believe that public outrage - or at least the prospect of it - has ever particularly bothered the holders of power and their lawmakers. As for anything "worse" - no problem, that's what Homeland have been catering for with their quiet stockpiling of domestic munitions.


If you control access to cash & food, if you control the financial & security statutes via martial law or state of emergency, and if your gun is bigger than everyone else's… then you're laughing all the way to citizen compliance. Everyone can get as outraged as they like, but it won't change squat.


All of this already has precedent - I've seen it in action. Anyone who thinks that laws and taxes cannot be conveniently and shamelessly changed in a lightspeed heartbeat is a sitting duck.


Fascinating information about schizophrenics Arthur. My main friends happen to be, and unfortunately have been of that church - the casuality rate is high.  The circles in which I move of necessity. And btw no previous offence intended to you.
I too should be relaxing on my yacht, if I had one - but change is breathing down our necks and even yachts may not be places to be if the forces of gravity shift.  Note all those earthquakes in Italy eg.

I may have better references…

I do. Please see SOTT.net(earth changes) and YowUsa ( under signs ). 

I'm having a lead cap knitted to keep my hair from standing up straight!

PS  Another mad idea: You previously opined that silver might be safer. If certain capable and ruthless entities are, so to speak, going for gold at any cost because their very (lives?), may depend on it, resistance would be…   But surely this is realms of sci-fi and I am already deranged. Must dash. The minders are coming!

Oh! Don't forget Michael Tellinger back in Africa. Was he completely mad or only half way there?




Best way to invest your wealth which is out off the control of external agencies is energy efficiency and self sufficiency at home, growing more of your own food, setting up bartering networks, etc. After the upcoming SDR bailout there will be no further bailouts. We will have to face reality and take the pain.
ps. Those with gold, find a good place to bury it. Future archaeologists might find it and wonder what tragic circumstances led to it’s burial and non retrieval. Lol

First 200 raindeer are struck down by lightning in Norway, as þor announces his return with an offering of meat. (He has a healthy appetite. )
Next he does the right thing and destroys a Semitic Death Cult Temple in Italy.  He bears no malice towards Italians and harms none. Mjolnir is powerful and he wields it with precision, a real master .

And now he strikes again, again with precision and power at Cushing. Right near the USA's oil storage facility. The message is clear, "You are not the God of War, I am. And I'm back."

Abandon the three Semitic Death Cults. Return to the religion of your ancestors, Asatru




I get the theory behind having gold in times of upheaval, but not sure I understand how it will work in practice.  Coins may be useful, but how will gold bars be used?  Wouldn't they be like $1000, or even $10,000 dollar bills? And if the majority of people have no gold?  Difficult to have markets or commerce if most people have none of the prevailing currency.
Won't the utility of gold become limited in a major collapse of systems?  For example, wouldn't jewelry become an unaffordable accessory?  

Wonder if a future currency will need to have more intrinsic or inherent value, such as food, which could be considered nature's currency.

Karen Hudes has been working with a games theory model of the power plays that  she says is 95% accurate.
The general thrust of her argument is that the money printing scam by the Central Bankers is, according to her model, in the process of dissolving "naturally ".


If you want to go to the store and buy a lot of goods, you bring silver or gold coin. If you want to buy a truckload of goods, you pay in silver or gold bar. The truck driver takes that silver or gold bar, and gets a truckload of goods to take to its next destination, along with some coin.
The gold bars stay in the same city for the most part; they empower the larger scale commerce until better arrangements are worked out.