Aftermath

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Aftermath Page 34

by James Rickards


  Lind, Michael. Land of Promise: An Economic History of the United States. New York: Harper, 2012.

  Mandelbrot, Benoit, and Richard L. Hudson. The (Mis)behavior of Markets: A Fractal View of Risk, Ruin, and Reward. New York: Basic Books 2004.

  McCarthy, Cormac. The Road. New York: Alfred A. Knopf, 2006.

  McMahon, Dinny. China’s Great Wall of Debt: Shadow Banks, Ghost Cities, Massive Loans, and the End of the Chinese Miracle. New York: Houghton Mifflin Harcourt, 2018.

  Mitchell, Rodger Malcolm. Free Money Plan for Prosperity. Wilmette. Ill.: PGM Worldwide, 2005.

  Murray, Charles. In Our Hands: A Plan to Replace the Welfare State. Washington, D.C.: AEI Press, 2016.

  Mussa, Michael, James M. Boughton, and Peter Isard, eds. The Future of the SDR in Light of Changes in the International Monetary System. Washington, D.C.: International Monetary Fund, 1996.

  Navidi, Sandra. Superhubs: How the Financial Elite & Their Networks Rule Our World. Boston, Mass.: Nicholas Brealey Publishing, 2017.

  Noah, Timothy. The Great Divergence: America’s Growing Inequality Crisis and What We Can Do About It. New York: Bloomsbury Press, 2012.

  Parijs, Philippe Van, and Yannick Vanderborght. Basic Income: A Radical Proposal for a Free Society and a Sane Economy. Cambridge, Mass.: Harvard University Press, 2017.

  Platt, Stephen R. Imperial Twilight: The Opium War and the End of China’s Last Golden Age. New York: Alfred A. Knopf, 2018.

  Polanyi, Karl. The Great Transformation: The Political and Economic Origins of Our Time. Boston, Mass.: Beacon Press, 2001.

  Reinhart, Carmen, and Kenneth S. Rogoff. This Time Is Different: Eight Centuries of Financial Folly. Princeton, N.J.: Princeton University Press, 2009.

  Ricardo, David. The Principles of Political Economy and Taxation. Mineola, N.Y.: Dover Publications, 2004.

  Rickards, James. Currency Wars: The Making of the Next Global Crisis. New York: Portfolio/Penguin, 2011.

  ———. The Death of Money: The Coming Collapse of the International Monetary System. New York: Portfolio/Penguin, 2014.

  ———. The Road to Ruin: The Global Elites’ Secret Plan for the Next Financial Crisis. New York: Portfolio/Penguin, 2016.

  Saint-Paul, Giles. The Tyranny of Utility: Behavioral Social Science and the Rise of Paternalism. Princeton, N.J.: Princeton University Press, 2011.

  Scheidel, Walter. The Great Leveler: Violence and the History of Inequality from the Stone Age to the Twenty-First Century. Princeton, N.J.: Princeton University Press, 2017.

  Schweizer, Peter. Clinton Cash: The Untold Story of How and Why Foreign Governments and Businesses Helped Make Bill and Hillary Rich. New York: Harper, 2016.

  Shriver, Lionel. The Mandibles: A Family, 2029–2047. New York: Harper, 2016.

  Smith, Adam. The Wealth of Nations. New York: Modern Library, 1994.

  Steil, Benn. The Battle of Bretton Woods: John Maynard Keynes, Harry Dexter White, and the Making of a New World Order. Princeton, N.J.: Princeton University Press, 2013.

  Streeck, Wolfgang. How Will Capitalism End? Brooklyn, N.Y.: Verso, 2016.

  Strogatz, Steven. SYNC: The Emerging Science of Spontaneous Order. New York: Hyperion, 2003.

  Subacchi, Paola. The People’s Money: How China Is Building a Global Currency. New York: Columbia University Press, 2017.

  Sunstein, Cass R. The Ethics of Influence: Government in the Age of Behavioral Science. New York: Cambridge University Press, 2016.

  Suskind, Ron. Confidence Men: Wall Street, Washington, and the Education of a President. New York: Harper, 2011.

  Thaler, Richard H. Misbehaving: The Making of Behavioral Economics. New York: W. W. Norton & Company, 2015.

  Thaler, Richard H., and Cass R. Sunstein. Nudge: Improving Decisions About Health, Wealth and Happiness, Revised and Expanded Edition. New York: Penguin Books, 2009.

  Thompson, William E., Joseph V. Hickey, Mica L. Thompson. Society in Focus: An Introduction to Sociology, Eighth Edition. Lanham, Md.: Rowman and Littlefield, 2017.

  Tooze, Adam. Crashed: How a Decade of Financial Crises Changed the World. New York: Viking, 2018.

  ———. The Deluge: The Great War, America and the Remaking of the Global Order, 1916–1931. New York: Penguin Books, 2014.

  ———. The Wages of Destruction: The Making and Breaking of the Nazi Economy. New York: Penguin Books, 2006.

  Turner, Adair. Between Debt and the Devil: Money, Credit, and Fixing Global Finance. Princeton, N.J.: Princeton University Press, 2016.

  Vogl, Joseph. The Ascendancy of Finance. Malden, Mass.: Polity Press, 2017.

  Volcker, Paul A., with Christine Harper. Keeping At It: The Quest for Sound Money and Good Government. New York: Public Affairs, 2018.

  West, Geoffrey. Scale: The Universal Laws of Growth, Innovation, Sustainability, and the Pace of Life in Organisms, Cities, Economies, and Companies. New York: Penguin Press, 2017.

  Whitehead, Alfred North. Science and the Modern World. New York: Cambridge University Press, 2011.

  Wray, L. Randall. Modern Money Theory: A Primer on Macroeconomics and Sovereign Monetary Systems. New York: Palgrave Macmillan, 2012.

  Zatarian, Lee Allen. Tanker War: America’s First Conflict with Iran, 1987–1988. Philadelphia, Penn.: CASEMATE, 2008.

  Zelizer, Viviana A. The Social Meaning of Money: Pin Money, Paychecks, Poor Relief, & Other Currencies. Princeton, N.J.: Princeton University Press, 2017.

  Index

  The page references in this index correspond to the print edition from which this ebook was created, and clicking on them will take you to the the location in the ebook where the equivalent print page would begin. To find a specific word or phrase from the index, please use the search feature of your ebook reader.

  Ackman, Bill, 130

  Adams, John, 58

  Adams, John Quincy, 59

  algorithmic trading, 13, 148–49, 151–52

  alpha trap, 123–54; and active fund managers, 129–35; alpha and beta described, 123–29; and “everything bubble,” 135–45; and “no-bid” market, 145–54

  Altman, Sam, 181

  Amazon, 85, 134, 286

  The American Class Structure in an Age of Growing Inequality (Gilbert), 233

  American Dream, 239

  American Economic Association, 90

  American Enterprise Institute, 177

  American Recovery and Reinvestment Act, 73

  Ames Research Center, 250

  anchoring bias, 94, 97, 129, 132

  Andreeson, Marc, 181, 249–50

  Applied Physics Laboratory, 31

  Argentina, 271, 273–75

  Ariely, Dan, 113–14, 115, 119

  artificial intelligence, 144–45, 153

  Asian financial crisis, 214

  Asian Tigers, 272

  Assad, Bashar al-, 35

  asset bubbles, 6, 11–14, 50, 139

  austerity, 160, 161, 173

  Austrian School, 138, 248

  autocorrelation, 260, 261

  automation, 148, 181

  Bad Ragaz, Switzerland, 112–13

  Baker, James, 146, 175–76, 197

  bancor, 195, 206, 292

  bank failures, 84, 139, 152, 228, 231, 237, 289–90

  Bank for International Settlements (BIS), 138, 158–59, 211, 255

  Bank of England, 192, 208

  Bank of Japan, 6, 187

  bankruptcies, 4, 65, 159, 231, 237, 280–83, 288

  barbell portfolios, 188–89

  barter economy, 173, 292, 295

  Basic Income (Van Parijs and Vanderborght), 180

  Bauer, D. H., 209

  Bayesian probability, 153, 256

  Bear Stearns, 231, 236, 237, 288

  Beeghley, Leonard, 232–33

  behavioral psychology and economics, 90–96, 110, 113–14, 116, 119, 129, 135, 153

  benchmarks, 128, 135

  Bentham, Jeremy, 93

  Bernanke, Ben: and 2008 financial crisis, 236; and Fed Funds rates, 3–
4; and Fed Puts, 151, 152; and Fed response to crises, 270–71; and global monetary reset proposal, 200, 201, 205; and portfolio channel effect, 136–37; and prospects for new recession, 269; and quantitative easing, 4–5

  Bernoulli process, 277, 290

  beta, 127–28

  Bezos, Jeff, 240, 286

  Biddle, Nicholas, 61

  Biden, Joe, 41–42

  Bismarck, Otto von, 180

  bitcoin, 148

  black market economy, 293

  Black-Scholes options, 124

  black swan events, 141, 153, 277

  Blankfein, Lloyd, 238

  Bloomberg, Mike, 22

  Bloomberg TV, 253

  blue whales, 224–28, 230–31

  bond vigilantes, 70–71

  Booker, Cory, 187

  boom and crash cycles, 271–72, 289–90

  Bowles, Samuel, 119–20

  Brando, Marlon, 156

  Brazil, 207–8, 214, 271, 273

  Bretton Woods conference, 52, 194–95, 195–97, 199, 203, 212–13, 221, 291. See also International Monetary Fund (IMF); World Bank

  Brexit, 149–50

  Brezhnev, Leonid, 15–16

  BRICS economies, 273

  Buchanan, James, 60

  Buchanan, Pat, 45

  budget deficits: and congressional control of budget, 79–80, 82; and context of current U.S. debt, 66–68, 70, 73–79; and employment rates, 178; and Fed rate policies, 9; and history of U.S. debt, 57, 60–64; and investing strategies for gold-backed currencies, 220; and investing strategies for mercantilist world, 52; and modern schools of economic thought, 171, 173; and prospects for new recession, 13, 282; and PSE/GBI proposals, 184, 186; and Reagan/Trump comparison, 56; recent U.S. trend, 182–83; and risk of high debt-to-GDP ratios, 156–57, 160–61, 163; and scale issues in capital markets, 229; and stock/bond price correlations, 143

  budget surpluses, 57–61, 63, 71, 80

  Buffett, Warren, 150, 288

  bull markets, 136, 220, 283–87

  Bush, George H. W., 45, 56, 66–68, 71, 79

  Bush, George W.: and congressional control of budget, 79; and context of current U.S. debt, 66, 71, 74; and DP World scandal, 36; and history of U.S. debt, 58; and nationalism/globalism dichotomy, 45; and overview of U.S. debt-to-GDP ratio, 56

  Caesar, Julius, 180

  Cambridge Analytica, 115

  Campbell, William D., 45

  Canada, 191–92, 197, 285

  Canada Real Residential Housing Price Index, 138

  capital gains taxes, 240

  capital markets, 106, 228, 229, 257

  Carter, Jimmy, 9, 64, 69, 72, 79

  Carville, James, 70

  “The Case for a New International Monetary System” (Shelton), 191, 199

  cash allocations, 85–86, 222

  Catholic Church, 180

  Caxton Associates, 130–31

  central banks: and catalysts of economic crises, 290; and global monetary reset proposal, 202; and international monetary conferences, 192; and loss of confidence, 83, 84; and the Malaysia Plan, 215, 217; and modern schools of economic thought, 169, 170; policy since 2008, 2; and risk of high debt-to-GDP ratios, 161; and systemic risk, 257

  Central Intelligence Agency (CIA), 23–32, 34–38, 43, 252–53

  charitable giving, 96–97, 98–99, 240

  chartalism, 164–65, 166–68, 171

  Chase, Salmon P., 61

  China: and acquisition of gold, 248, 282; and behavioral manipulation, 116; Chinese State Administration of Foreign Exchange (SAFE), 211; Chinese yuan, 209–13; and cryptocurrencies, 206–8; and currency devaluations, 151, 262, 265; and current bull market, 285; and emerging-market debt crises, 273–75; financial risks, 258–63; and global wealth gap, 245; and gold-peg operation, 209–13; and investing strategies for gold-backed currencies, 220–21; and investing strategies for mercantilist world, 52–53; mercantilist system of, 22; and North Korea nuclear negotiations, 286; theft of intellectual property, 266–67; trade negotiations with, 262, 264–68, 285–87; and U.S. globalism, 46, 49–50; and U.S. infrastructure vulnerability, 290; WTO membership, 2–3

  choice architecture, 90, 95–112, 114–15, 121

  Choices, Values, and Frames (Kahneman and Tversky), 92

  Christmas Eve Massacre, 283

  Churchill, Winston, 194

  Citibank, 236–37, 238, 254–55, 271–72

  Civil War (U.S.), 60–61, 119, 170, 289

  Clapper, James, 40, 45

  class structure and divisions, 232–46, 292–93

  Claudius, 180

  Clay, Henry, 50, 53

  clearinghouses, 139, 231–32, 255–56

  Clinton, Bill, 36, 41–45, 56, 66, 69–72, 74, 79–80, 82

  Clinton, Hillary, 36, 41–43, 115

  Clinton Cash (Schweizer), 43

  cognitive biases, 94, 125, 130–31, 133, 150, 153, 278

  Coinage Act, 193

  Cold War, 10, 15–16, 25, 30, 45–46, 67, 70, 263

  college admissions, 238, 241

  Columbia University, 160

  Commerce Department, 43

  Committee on Foreign Investment in the United States (CFIUS), 32, 33–40, 267–68

  commodities, 169, 208, 271

  Commodities Corporation, 132

  Communist Party, 261

  comparative advantage, 48, 49

  confidence, 9, 11, 21, 55, 83, 163, 171–72, 174

  confirmation bias, 110, 129–30, 132

  Congressional Budget Office (CBO), 77–78, 84

  Conrad, Joseph, 156

  Consumer Price Index (CPI), 3

  contagion effects, 13, 148, 275, 288

  Continental Congress, 58

  Cooke, Jay, 61

  Coolidge, Calvin, 61

  Coppola, Francis Ford, 156

  Cornyn, John, 51–52

  credit ratings, 82, 241–42

  cryptocurrencies, 208

  currency hawks, 268

  currency manipulation, 265–67. See also devaluation of currencies

  currency pegs, 192, 196, 207, 210, 213–19, 262

  currency speculation, 273

  currency wars, 206, 218, 261

  Currency Wars (Rickards), 18

  Dam, Kenneth W., 192

  Danta, Flavia, 185

  Darman, Richard, 69

  Davidson, Paul, 164

  The Death of Money (Rickards), 18

  debt: and 2008 financial crisis, 245; debt-and-growth trap, 189; debt-bombs, 83; debt/credit relationship, 280; debt defaults, 161; debt/growth relationship, 158; debt issuance, 137; debt monetization, 11, 70, 166–67, 170–71, 173–74, 269; debt-to-equity ratio, 10, 157–58; debt trends, 285; and modern schools of economic thought, 169; and onset of financial crises, 258; and reality of Chinese economy, 257, 261. See also debt-to-GDP ratio

  “Debt and Growth Revisited” (Reinhart and Rogoff), 158

  debt-to-GDP ratio: and congressional budgetary politics, 79, 82; historical perspective on, 55–58, 60, 63–64; and investment strategies, 84–85; and the Malaysia Plan, 218; and point of no return, 83; and prospects for new recession, 282; and PSE/GBI proposals, 184, 187; and recent budgetary trends, 65–71, 74–75, 77–78, 182, 245–46; risks of high debt-to-GDP ratios, 155–63; and scale issues in capital markets, 229; and Trump tax cuts, 10

  Defense Intelligence Agency (DIA), 28, 34, 43

  defense spending, 70, 75, 79–80, 282

  Deficit Reduction Act, 70

  deficits and deficit spending. See budget deficits; debt-to-GDP ratio; trade deficits

  deflation, 3, 170, 174–75, 188–89

  deleveraging, 130

  DeLong, Brad, 161, 164

  The Deluge (Tooze), 21

  democracy, 117, 173

  Democratic Party, 56, 64, 68–70, 72, 75, 79–80, 82

  demographic trends, 65, 78, 262–63, 285

  depressions, 14, 177, 248

  derivatives, 6, 49–50, 139, 231–32, 236, 255–56

  Deuts
che Bank, 239

  devaluation of currencies: and Chinese monetary policy, 151, 262, 265; and emerging-market debt crises, 272; and Fed Puts, 151; and Fed rate policies, 8; and global monetary reset proposal, 206; gold as protection from, 17; and international monetary conferences, 194–97; and the Malaysia Plan, 215–18; and nationalism/globalism dichotomy, 49; and prospects for new recession, 282

  digital currency, 168, 206–9

  Dimon, Jamie, 238

  discretionary monetary policy, 17–18

  distributed ledger monetary system, 207–8

  dollar-gold transactions, 218

  domestic spending, 75. See also Keynesian economics

  doomsday scenarios, 279–83

  dot-com stocks, 2, 12, 50, 135, 187–88

  double-entry accounting, 168, 170

  Dow Jones Industrial Average, 124, 136, 145, 283–84, 287–88

  Dubai Ports World controversy, 35–38, 288

  Dukakis, Michael, 68

  Dulles, Allen, 32

  dynamic stochastic general equilibrium models (DSGE), 106

  Eberstadt, Nicholas, 177–78

  efficient market hypothesis (EMH), 122, 124–27, 129, 142

  Eichamann, Adolf, 92

  Eisenhower, Dwight, 15, 63

  Eliot, T. S., 155–56

  emergent properties, 153, 230, 260

  emerging markets, 12–13, 204–5, 263, 271–75

  Emirate of Dubai, 35, 37

  employment rates, 8, 175–76, 176–78, 186–87, 288

  equity credit bubbles, 139

  espionage, 24–26

  euro, 52, 149

  European Central Bank (ECB), 52, 152, 159, 211

  European sovereign debt crisis (2009–2015), 273

  European Union (EU), 69, 161

  Eurozone, 159, 221

  “everything bubble,” 135–45

  exchange rates, 49, 193

  exchange-traded funds (ETFs), 140, 144, 150

  exchange-traded markets, 154

  exchange-traded notes (ETNs), 140, 144

  FAANG stocks, 85, 134–35, 286

  Facebook, 85, 134, 240, 286

  fallacy of composition, 147, 150, 256

  Fama, Eugene, 124

  Fannie Mae, 231, 237, 288

  Federal Bureau of Investigation (FBI), 43, 259

  Federal Deposit Insurance Corporation (FDIC), 152, 237

  Federal Open Market Committee (FOMC), 12–13, 174

  Federal Reserve: and 2008 financial crisis, 236–37; and context of current U.S. debt, 79; Federal Reserve Board, 236; Fed Funds effective rate, 3–4, 6; Fed Puts, 151–52; and global monetary reset proposal, 201; and history of U.S. debt, 59, 64; and The Mandibles scenario, 292; and modern schools of economic thought, 165, 170–74; and private gold ownership, 17; and PSE/GBI proposals, 187; and quantitative easing, 7; reliance on Phillips Curve, 106; and runs on gold reserves, 247; and scale issues in capital markets, 232; and Trump tax cuts, 10

 

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