Tweet of the Day: Jim Rickards on US Government Shutdown

This is from American lawyer, economist and author of the Currency Wars, James ‘Jim’ G. Rickards at his twitter (hat tip Peter Coyne of the Daily Reckoning)

Jim Rickards: Federal Reserve needs to cut US Dollar in half over next 14 years

Jim Rickards managing director of market intelligence for scientific consulting firm Omnis, sees the US dollar cut in half over the next decade or so, in a CNBC Interview. [Hat Tip: TruthFN]

Some notes and excerpts:

Expect: 4% inflation in 14 years that will cut the US Dollar in half
Explains SDRs as solution to the Triffin Dilemma
recommends 10% gold 90% cash
SDRs-printing money but still nothing behind it
No solution for national security implications
Central banks are hoping for a "stable steady" decline of the US dollar and not a collapse


“Unannounced product of G20, the IMF anointed as global Central bank...
"IMF is issuing Debt for the first time in history"
“Displace the dollar with SDRs
“If you own Gold you are fighting central banks in the world. Central banks hate gold because it limits their ability to print money. But the market is the market, the market will do what it wants even the central banks are not bigger than the market.”



My comment:

It seems odd for an expert to prescribe a portfolio of 90% cash and 10% gold when the risk of a dollar collapse is construed as significant.

A dollar collapse means the loss of the basic function of the currency as medium of exchange, store of value and the unit of account on an international scale.

That would only mean inflation going berserk. Who would want to hold cash (US dollar) in an environment where money is rapidly losing purchasing power?

This would seem self contradictory.