Aftermath

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Aftermath Page 35

by James Rickards


  Federal Reserve Bank of New York, 204, 246–48

  feedback functions, 142, 147, 260

  “feed-the-beast” approach, 66–68, 71–72, 74

  Feinstein, Dianne, 51–52

  fiat currency, 167, 202, 295

  FICO scores, 241–42

  financial war games, 30

  Fink, Larry, 238

  First World War, 61, 119, 155, 192–93

  fiscal stimulus, 160–61, 196. See also Keynesian economics

  Fisher, Irving, 164

  fixed exchange rates, 273

  flash crashes, 124, 146–48

  floating exchange rates, 196

  Forbes, Steve, 9, 74

  forced labor, 265

  force multipliers, 290

  Ford, Gerald R., 15, 33, 46, 64

  foreign investment, 196, 216–17

  Foreign Investment Risk Review Modernization Act (FIRRMA), 51–52

  401(k)s, 89–90, 107–9, 122, 136–37

  “four horsemen” metaphor, 18–19

  France, 147, 191–94

  Freddie Mac, 231, 237, 288

  free-floating exchange rates, 49

  Free Money (Mitchell), 166

  free-trade ideology, 21, 48, 50

  Friedman, Milton, 49, 164, 173, 180, 196

  Frigon, Gerry, 123

  FSB intelligence service, 26

  Fukushima catastrophe, 290

  Fullwiler, Scott, 185

  G5, 196, 197

  G6, 197

  G20, 48, 159, 255

  “Gang of Sixteen,” 206

  Geithner, Tim, 201–2, 204–5, 237

  General Motors, 53

  Geneva, Switzerland, 112

  Genoa Economic and Financial Conference, 193–94, 196–97, 199

  “The Geopolitical Special Address” (Rickards), 28

  George Bush Center for Intelligence, 23

  Germany, 52, 53

  gig economy, 238–39, 241–42

  Gilbert, Dennis, 233–34

  Gingrich, Newt, 80

  Girard, Stephen, 61

  Giustra, Frank, 40–43

  global financial crisis (2007–2008), 34, 73, 142, 152, 187–88, 197, 205, 212, 236–38, 259, 273

  globalism and globalization, 22, 45–52, 181, 263–64

  Goebbels, Joseph, 117

  gold: and banking practices, 255; bullion, 246–47, 278; confiscation of, 17, 33, 200–201, 292; and cryptocurrencies, 206–8; and diversification of investments, 154; and “everything bubble,” 135; gold-backed world money, 195; gold-exchange standard, 194, 196; “gold points,” 192–93; gold standard, 17, 22, 49, 171, 192–94, 197–99, 200–201; gold-to-paper-money ratio, 247–48; as hedge against inflation and deflation, 189, 282–83; and Helsinki Accords, 15; historical reliability of, 275; and the Malaysia Plan, 213–19; market corners, 153; and market crashes, 119; and mercantilist trade environment, 52–53; and monetary conference proposal, 205–6; and monetary theory, 168–71; and monetization of debt, 173; “money is gold,” 219–20; and nationalism/globalism dichotomy, 49; and post-crash scenarios, 292, 295; and retirement saving strategies, 108–11; as risk-free asset, 129; and social unrest, 244; and special drawing rights, 209–13; trading strategy for asset-backed securities, 219–22; as wealth preservation strategy, 17–18, 246–48

  Gold Investor, 197–98

  Goldman Sachs, 231, 238

  Gold Reserve Act of 1934, 33

  Gold Standard Act, 193

  Google, 85, 134

  Goolsbee, Austan, 73

  Gorbachev, Mikhail, 67

  Gorman, James, 251–52, 254–55

  Gracchus, Gaius and Tiberius, 180

  Grand Resort, 112–13

  Grant, Ulysses, 153

  Great Depression, 5, 12, 14, 61–62, 145, 179, 188, 212, 222, 289

  The Great Leveler (Scheidel), 242, 249

  Great Society, 72, 179

  Greece, 52, 65, 112, 182–83, 273

  greenbacks, 61

  Greenspan, Alan, 2–3, 6, 70, 151, 197–99, 236

  gross external financing requirement (GXFR), 274

  Group of Ten (G10), 195

  growth rates, 65, 77, 84–86, 244–45, 284

  guaranteed basic income (GBI), 166, 175–88

  Guevara, Drew, 250–53

  Hamilton, Alexander, 22, 50, 53, 58

  Harding, Warren G., 61

  Harrison, Benjamin, 60

  Harvard Law School, 91

  Haspel, Gina, 252

  Hastert, Dennis, 36

  Hawking, Stephen, 155–56

  Hayden, Mike, 24

  health-care costs, 175, 178, 183, 238

  Heart of Darkness (Conrad), 156

  hedges and hedge funds, 126, 142, 146–47, 196, 272, 288

  Helsinki Accords, 15–16, 46, 67

  Hemingway, Ernest, 279–80, 281–82, 283

  Henry VIII, 180

  herding behavior, 106

  Hickey, Joseph, 233

  Hicks, John, 163

  high-powered money (HPM), 166

  Hippocrates, 5

  Holder, Eric, 237

  “The Hollow Men” (Eliot), 155

  Homer, 1

  Hong Kong, 272

  Hoover, Herbert, 5, 61–62

  Hotsuki, Keishi, 254

  House of Morgan, 192–93. See also JPMorgan; J. P. Morgan & Co.; Morgan Stanley

  housing markets, 138, 238, 288

  “How Will the Euro End” (conference), 112

  Hughes, Chris, 181

  Hume, David, 55

  hurricanes, 119, 291

  hyperinflation, 50, 161, 248, 292

  hypersynchronicity, 13, 84, 141, 153, 269–70, 281

  Iksil Bruno (London Whale), 230

  immigration, 9, 11

  “The Impact of High and Growing Government Debt on Economic Growth” (ECB study), 159

  income inequality, 18, 158, 164, 178, 234, 242–43

  index investing, 127, 133, 139–40, 143, 150

  India, 207–8, 273

  Indonesia, 214, 218, 272–75

  inflation: and alpha trap, 128–29; and context of current U.S. debt, 65, 69–70, 79; and employment rates, 177; and gold ownership, 17; and gold-peg operation, 212; and gold prices, 247; and history of U.S. debt, 64; and investing strategies for low growth periods, 85; and loss of confidence, 83; and the Malaysia Plan, 215–16; and market volatility, 284; and modern schools of economic thought, 170, 173–75; and prospects for new recession, 282–83; and PSE/GBI proposals, 187–89; and quantitative easing, 4–6; and stock/bond price correlations, 143; and unemployment, 8

  insider trading, 38, 123–26, 145

  insurance, 89–90, 111

  intellectual property, 261, 263, 265, 285

  intelligence community (IC), 26–28, 31, 33–36, 39–40, 42–43

  interbank liquidity, 255

  interest rates: and 2008 financial crisis, 236; and context of current U.S. debt, 78; and market volatility, 284; and prospects for new recession, 268–71; and quantitative easing, 6, 7; rate hikes, 7–8, 152, 285; rate policy normalization, 13–14; rates cuts, 12; and risk of high debt-to-GDP ratios, 163; and stock/bond price correlations, 143. See also quantitative easing and tightening

  international monetary conference, 191–97, 199, 201, 203–6, 210, 213, 219, 221

  International Monetary Fund (IMF): and context of current U.S. debt, 65; and cryptocurrencies, 207–9; and emerging-market debt crises, 274–75; and global monetary reset proposal, 198; influence of monetary elites, 200–205; and international monetary conferences, 193; and investing strategies for gold-backed currencies, 220; and the Malaysia Plan, 213–15, 218; and nationalism/globalism dichotomy, 45, 48; and reality of Chinese economy, 263; and risk of high debt-to-GDP ratios, 161; and SDR/GOLD peg, 209–12; and systemic risk, 257

  investing strategies: and alternative assets, 246–48; and asset-backed currencies, 219–22; and behavioral manipulation, 121–22; diversification away from exchange-traded markets, 154; for low productivi
ty scenarios, 188–89; for mercantilist world, 52–53; for slow growth and recessions, 84–86

  Iran, 220, 275, 282, 290

  Ireland, 112, 273

  irrationality, 110–11, 118, 125

  Jackson, Andrew, 47, 59

  Japan: and current global risks, 276; debt-to-GDP ratio, 182–83; and global wealth gap, 245; and investing strategies for gold-backed currencies, 221; “lost decade,” 85, 270; and the Malaysia Plan, 217; and monetary conferences, 191–92; and North Korea nuclear negotiations, 286; and risk of high debt-to-GDP ratios, 157–58, 162; trade negotiations with China, 266

  Jarrett, Valerie, 73

  Jefferson, Thomas, 15, 59

  John Paul II, Pope, 16

  Johnson, Lyndon, 46, 63, 69, 72, 171, 179

  JPMorgan, 143, 230, 232, 238

  J. P. Morgan & Co., 219

  Judgment Under Uncertainty (Kahneman and Tversky), 92

  Kahneman, Daniel, 87, 92–95, 113–14, 118–19

  Kalecki, Michal, 164

  Kaufman, Henry, 203

  Kazakhstan, 41, 44

  Kelleher, Colm, 252, 255, 256

  Kelton, Stephanie, 11, 166–70, 172, 175, 185–86, 269–70

  Kennedy, John F., 45, 63

  Keynesian economics: definition of depression, 14; and global monetary reset proposal, 199; and history of U.S. debt, 62; and international monetary conferences, 195; and investing strategies for mercantilist world, 52; and liquidity trap concept, 3; and modern schools of economic thought, 163–64, 167; and risk of high debt-to-GDP ratios, 156–57; and risk of passive trading strategies, 146–47

  Kim Jong Un, 286, 287

  “King Dollar” policy, 196–97

  Kissinger, Henry, 271

  Kiss of Death, 24–25

  kleptocracy, 272

  Knapp, Georg Friedrich, 167

  Korean War, 64, 171

  Korea-United States trade deal (KORUS), 285

  Kovner, Bruce, 129–33, 135, 150

  Krugman, Paul, 159–62, 164

  Kudlow, Larry, 9, 74, 264, 282

  Labor Force Participation Rate (LFPR), 176–77, 178

  Lacqua, Francine, 253

  Laffer, Art, 9, 74, 282

  Laffer Curve, 9, 75, 285

  Lagarde, Christine, 198–99, 208

  Landry, John R., 37–38, 40

  Lapidus, Morris, 28

  Latin America, 50, 271, 272

  Lehman Brothers, 4, 231, 237, 281, 288

  leverage, 6, 49–50, 148, 261, 269, 283

  Levine, Matt, 148–49

  Levy Economics Institute, 177

  libertarian paternalism, 95, 100

  Liberty Bonds, 61

  Lighthizer, Robert E., 264, 266, 268

  Lincoln, Abraham, 15, 59

  Lipsky, John, 200–205

  liquidity, 3, 7, 13, 130, 202, 255, 273

  Liu Hu, 116

  London Clearing House, 255

  London School of Economics, 163

  Long-Term Capital Management (LTCM), 129–30, 131, 151, 272–73

  loss limits, 131–32

  lost decades, 85, 270

  Louvre conference, 146, 191–92, 197

  M1 money supply, 169, 221

  Maastricht Treaty, 69, 159

  machine trading, 144–45

  Mack, John, 238

  Madison, James, 59

  Madoff, Bernie, 258–62

  Mahathir bin Mohamad, 214–15

  Malaysia, 215–19, 272

  Malpass, David, 74

  The Mandibles (Shriver), 279, 292–96

  Mar-a-Lago conference (proposal), 199, 205–6, 266

  marginal propensity to consume (MPC), 188

  Markopolos, Harry, 259–60

  Mattis, James, 50

  May, Theresa, 191

  McCarthy, Cormack, 291

  McCulley, Paul, 173

  McKee, Michael, 253

  McKinley, William, 60

  McMaster, H. R., 50

  Medicare and Medicaid, 72, 78, 183

  Menendez, Robert, 36

  mercantilism, 22, 52–53

  Mercer, Robert, 115

  Meriwether, John, 129–30

  Merkel, Angela, 159

  Merrill Lynch, 237, 238

  Merton, Robert C., 124, 126, 129

  Mexican-American War, 59–60

  Mexico, 50, 271–72, 274–75, 285

  middle class, 232–46

  middle-income trap, 216–17, 263

  Mikerin, Vadim, 45

  Milgram, Stanley, 91–92

  millennials, 182

  minimum-wage laws, 181, 186–87

  Minsky, Hyman, 167

  Miscik, Jami, 252–53, 256

  Mishkin, Frederick, 170

  Mission Solar, 53

  Mississippi Bubble, 147

  Mitchell, Rodger Malcolm, 166

  Mnuchin, Steve, 264, 268

  modern monetary theorists (MMTs), 11, 163–67, 169–75, 184–86, 269–70

  Mohammed bin Rashid Al Maktoum, 35

  “Monetary Policy in the Digital Age” (IMF report), 208

  monetization of debt, 11, 70, 166–67, 170–71, 173–74, 269

  money supply, 4, 8, 17, 49, 84, 169, 184, 187, 193–94, 207, 221, 247–48

  Monroe, James, 59

  Moore, Steve, 9, 74

  The Moral Economy (Bowles), 119–20

  More, Thomas, 179–80

  Morgan, John Pierpont, Sr., 61, 153, 219

  Morgan, John Pierpont (“Jack”), Jr., 61

  Morgan Stanley, 231, 236–38, 250–54, 256

  Morris, Robert, 61

  mortgage crisis, 6, 12, 81, 187–88, 236

  Moynihan, Brian, 238

  multilateral free-trade regimes, 52

  multiplier effects, 73, 75, 116, 139, 156–57, 161, 186–87, 229, 290

  Mundell-Fleming objection, 215–16, 228

  Murray, Charles, 183

  Musk, Elon, 181, 240

  NASDAQ, 34, 136, 140

  National Bureau of Economic Research, 90

  National Counterintelligence Executive (NCIX), 27

  National Geospatial-Intelligence Agency, 25

  National Intelligence Council, 37

  nationalism, 45–52, 47, 205

  national security, 23, 33–40, 263

  National Security Agency (NSA), 27, 43

  natural disasters, 276–77, 289–90

  natural resources, 122, 154

  Navarro, Peter, 264, 266

  Nazarbayev, Nursultan, 41–42

  Nazi Germany, 162

  negative income tax proposals, 180

  neobancor, 206

  Neo-Keynesians, 73–75, 159, 161, 163–65, 172

  Netflix, 85, 134

  Netherlands’s Tulip Mania Bubble, 147

  New Deal, 179, 187

  New Headquarters Building (NHB), 24

  new neoclassical synthesis, 164

  New York monetary conference, 196–97

  New York Stock Exchange (NYSE), 119, 140, 147

  Nifty Fifty stocks, 135–36

  9/11 attacks, 2, 71

  Nixon, Richard M., 15, 45–46, 64, 171, 180, 195, 201

  Nobel Prize winners, 90, 95, 124, 129–30, 137, 159–60

  “no-bid” market, 145–54

  Nolan, Dave “Davos,” 129

  North American Free Trade Agreement (NAFTA), 285

  North Atlantic Treaty Organization (NATO), 13, 45

  North Korea, 276, 286–87

  nuclear weapons, 275–76, 286

  Nucor, 53

  Nudge (Thaler and Sunstein), 90, 91, 107–8

  “nudges,” 96–99, 101–5, 107, 109–11, 116, 120–22

  Obama, Barack, 45, 56, 58, 66, 72–74, 79, 91, 115, 185

  Odyssey (Homer), 1–2, 7, 12

  Office of Information and Regulatory Affairs (OIRA), 91

  Office of the U.S. Trade Representative, 43

  offshore income, 76, 240

  “Of Public Credit” (Hume), 55

  oil prices
, 146, 206, 220, 271

  Olayan, Hutham, 253

  opportunity costs, 99, 132

  opt-in and opt-out elections, 100–101, 105, 107, 121

  Organisation for Economic Co-operation and Development (OECD), 48

  Organization for Security and Cooperation (OSCE), 41

  Organization of the Petroleum Exporting Countries (OPEC), 146, 271

  Original Headquarters Building (OHB), 24, 26

  Our Town (film), 294–95

  Panama Canal, 61

  pandemics, 290

  Pandit, Vikram, 238

  panic of 1907, 219

  Paris monetary conference, 191, 197

  Parscale, Brad, 115

  passive investing strategies, 13, 139, 150–52

  peace dividend, 70, 74

  Peninsular and Oriental Steam Navigation Company (P&O), 35–37

  Pershing Square, 130

  petrodollars, 206, 255, 271

  Pew Research Center, 235

  phase transitions, 84, 269–70, 281

  Phillips Curve, 8, 106, 285

  Planned Parenthood Federation, 99

  Plaza Accord, 197

  Plouff, David, 115

  Poland, 16, 275

  policy rate, 268

  Polk, James Knox, 59

  Ponzi schemes, 259, 261

  Poor Laws, 180

  portfolio channel effects, 5, 136

  portfolio insurance, 146–47

  post-Keynesians (PK), 163–65, 172

  postpurchase rationalization, 130

  postwar reconstruction, 194

  Powell, Jerome “Jay,” 7, 152, 174

  power curve distribution, 106, 142, 228–29, 253, 257

  power-grid vulnerability, 289–90

  precautionary reserves, 273

  predictive analytics, 153–54, 229

  printing of money, 4, 8, 83, 152, 157, 165, 174, 220

  Program on Behavior Economics and Public Policy, 91

  progressive taxation, 239–40

  progressivism, 164, 166

  Project Prophesy, 38, 252

  prospect theory, 92

  Public Law 93–373, 17

  public service employment (PSE), 179, 185–88

  Puerto Rico, 119

  Putin, Vladimir, 116

  Qualcomm, 51

  quantitative easing and tightening, 4–7, 11–12, 136, 151, 202, 268–71, 285

  Rattner, Steve, 73

  The Raven of Zürich (Somary), 251

  Reagan, Ronald, 9–10, 15–16, 22, 45, 66–67, 74–75, 79, 196

  “The Real Effects of Debt” (BIS study), 158–59

  recency bias, 94, 110

 

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