Rickards believes that the purchase of gold by the US would restore confidence in the dollar
Gold would also prevent bitcoin from ending up replacing the dollar.
The diversification of investments towards tangible assets such as gold is the recommendation made by economist Jim Rickards as a way to face the de-dollarization process currently underway.
The expert’s recommendation is part of his analysis of the risk of collapse present in the international monetary system. Hence, he considers that the purchase of gold, by the United States Treasury Office, would be the best path to avoid the dollar crisis and the advance of de-dollarization.
For Rickards – with extensive experience in banks such as Citibank and in hedge funds – the purchase of gold would restore confidence in the dollar and it would make people believe again that the currency has real value.
Recognizes, in this sense, that currently there is a loss of trust in institutions like the Federal Reserve and the banks. Circumstances in which human beings “tend to be very adaptable.”
«The value of money arises from trust. When institutions collapse and that trust is lost, the value of money is also lost, only for new institutions to emerge. and new forms of money and let the cycle begin again.” declares He is also a lawyer to specialized media.
“People will create new currencies when old money fails,” he says, giving the example of bitcoin (BTC), which he recognizes as one of those new forms of money. Hence, I consider the purchase of gold as a mechanism that could avoid that cryptocurrencies replace the dollar.
This is a strategy that, according to the economist, would make the price of gold in dollars continue to rise, and that would also serve as a declaration to the world that no more dollars will be printed.
“This does not mean that we are going to return to a gold standard, but it does mean that we are going to fulfill our obligations,” he insists. Although “to get to 2076, we have to think very seriously about whether we have lost track of what money really is for the United States.”
That is why it questions the use of the dollar as a weapon of war, a policy undertaken by the US by applying sanctions to Russia and blocking its dollar reserves. This is what has made countries wary of having dollars, triggering gold purchases by central banks. A practice that is mainly promoted by the BRICS bloc.
“We are in an economic depression”
In this way, Rickards, known for predicting the economic collapse of 2008shares the opinions of most experts who see the current situation as a prelude to a global recession. Experts such as Jamie Dixon, CEO of JPMorgan, banking analysts and even candidate Donald Trump have said it.
It is also felt by investors and users who eagerly look for safe assets and that is why they turn to gold and bitcoin. In that sense, Rickards explains why – in his opinion – the signs are not entirely clear for many:
We have been in a depression since 2007. I use Lord Keynes’ definition of a depression in the General Theory, which is a period of below-trend growth. without collapsing or strengthening.
Jim Rickards, economist and banker.
This is how, based on his 35 years of experience on Wall Street, foresees the final collapse of the US dollar. He also fears that a chaotic situation will arise in the elections next November, which “will cause the markets to collapse.”
