Recently on Coast To Coast AM, which is the largest and most heard late night radio show in the United States, radio host George Noory spent almost two hours conducting a Jim Rickards interview. Jim Rickards, who is also known as James Rickards, is an investment banker and he also holds two law degrees. Jim has an impressive resume as not only an author but also as a negotiator for the US in tense international affairs.
During the Jim Rickards interview, Jim also detailed his experiences as a “Financial War Games” participant for certain US agencies. These war games were held in a secret bunker outside of Washington, D.C., and the outcome was very interesting, but that particular subject deserves another article or two to its own.
When there is a Jim Rickards interview, I try to listen to it. Jim is very well spoken and eloquent when he speaks, but more importantly, Jim doesn’t just represent his opinion as fact, Jim has facts to back up his arguments. Jim’s arguments are so good that he is constantly being pulled aside to apply his knowledge to different currency issues. About two years ago Jim released a book called “Currency Wars” and was gracious enough to spend an hour doing a Jim Rickards interview with ITM Trading’ s founder, Craig Griffin.
Jim Rickards Interview With Craig Griffin About The Death Of Money.
The Jim Rickards interview heard on Coast To Coast AM April 5th, 2016 was done to promote Jim’s new book, “The New Case For Gold”. In his new book and in this Jim Rickards interview, Jim continues to suggest that everyone should hold 10% of their wealth in physical gold and silver. Jim suggests holding American Gold Eagle coins and American Silver Eagle coins. In fact, Jim suggests owning a “Monster Box” of American Silver Eagles. A Monster Box holds five hundred 1-ounce American Silver Eagle coins. ITM Trading can ship American Gold Eagle coins and Monster Boxes of Silver American Eagles right to your door, registered and insured, signature required.
During the Coast To Coast Jim Rickards interview, Jim took a few calls from listeners. During these calls, I learned some new things, as I very often do from Jim, but perhaps more importantly, the caller’s questions started me thinking. The few following paragraphs will go over some of the highlights and interesting points of the callers’ questions and Jim’s answers.
Jim Rickards Interview: If I Have Land Why Do I Need Gold?
One particular caller had several questions, but primary to them he wanted to know why you need gold or silver if you have land. He reasoned that if you have land you can grow food. Since you can eat food and you can’t eat American Silver Eagles and American Gold Eagles, why would you need gold and silver? The gentleman offered his opinions and even Cree Indian sayings as evidence to back up his argument. Jim was eloquent in his response as usual, once again.
Jim first answered that if gold and silver make up 10% of your investments and assets, that still leaves 90%. Jim believes in holding land as an asset. Jim also believes in diversification. Diversification means never having too much at risk or invested in any one area. Owning Gold American Eagles and Silver American Eagles diversifies you out of the dollar and fiat or un-backed currencies.
Jim reminded the caller that just 200 years ago, all the Founding Fathers and all Americans used gold and silver coins as currency, and that while you cannot eat currency you can spend it. There are farmers and others that would take silver for vegetables. The caller suggested that barter or trade would be a better currency than silver because people wouldn’t know if a silver coin was real or not. This caller was a handful.
Perhaps what I found most interesting about this Jim Rickards interview was when Jim stated that there had never been a barter economy in history. Jim is a currency expert, so I took notice. Jim stated that a credit economy is the oldest economy. Credit is older than cash or money or gold or silver. “If you give me two chickens, I will bring you back some carrots and corn later.” This is an early form of credit. If the debtor doesn’t bring back the carrots and corn, he is in default. Jim stated that “a barter economy is a myth that economists came up with”.
If you think about it, a barter is a trade. I checked several definitions of the word “barter”, and the consensus was that as long as cash or currency is not used, exchanging goods or services for goods and services constitutes a barter. If however, goods and services are delivered to one person for goods and services to be delivered from the other person at a later date, this is now a credit transaction, not a barter. If credit predates money, and a trade is a trade, then there will always be the need for currency, and gold and silver are currency.
Imagine going to a swap meet without any money. What are you going to take along for trade? How many old TV’s and DVD players are you going to load up in your car to trade with? What if no one wants them? What do you think you can trade an old laptop for? If you try doing the same thing at a pawn shop, you might find out just how tough trading is; trading doesn’t necessarily have to be fair.
On the other hand, I think gold and silver coins could have some purchasing power at a swap meet. Gold and silver coins are always accepted at a pawn shop though I never suggest you redeem your gold and silver coins at a pawn shop as they charge very high fees. The point is without currency, all you have left is credit and trade, and trade is useful, but trade is not always successful. When was the last time you actually traded for something?
I had never thought about a barter economy being an economic myth, but perhaps Jim is spot on about this, he usually is about these things. If you would like to listen to this Jim Rickards interview, you probably have to join the Coast To Coast web site. I did years ago and I recommend it. A better idea, however, would be to read Jim’s new book.