Jim Rickards: Prepare For The New Great Depression

In this video we go over Jim Rickards forecast of the New Great Depression and the underlying reasons why he thinks this...

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One of the people I’ve been listening to recently is Jim Rickards. Jim is a very smart author on finance and precious metals and he’s been paying close attention to what’s been going on lately. With regards to the lockdowns, the mass printing of money, the depressed economy, and a range of other things. Essentially he think there’s a new great depression on the horizon and we need to be prepared. Here’s a taste of what he’s been saying…

Audio 1

So Jim Rickards thinks we are in a similar situation to that of what happened way back in 1929. Obviously, I’m sure none of my viewers were alive back then, who knows maybe one or two were. But the 1920’s was the period called the Roaring 20’s. Back then, the economy was on fire, banks were giving out loans to everyone and the stock market was at all-time highs. That was until the end of the 1920’s where a big shift occurred. The economy started slowing down, people started buying less items like the new vacuum cleaners and electric washing machines.

What then subsequently occurred was a huge stock market crash, the Dow Jones went from 5,700 points to 520 points. As Rickards alluded to it only recovered 30 years later…

And we may be in a similar time today at least according to Jim…
This is what he said “this is both a supply shock and a demand shock, it’s extreme. I think people looking at the 2008 financial crisis, even 1998 with Russia, 1994 with Mexico, none of these crisis are good baselines! If you want to understand what’s going on now you to go back to 1929, you have to go back to the great depression!”

And what he’s talking about with the supply and demand shock let me explain. So back in the 1970’s there was that big market crash. Lasting 23 months you had the dramatic rise in oil prices, you had the miners strike, the Heath Government fell. But this was predominantly a supply shock. Why? Because Opec cut off oil exports to the United States, and supply was very low. This was the main thing that caused the crash.

2008 financial crisis it was the opposite we had a demand shock. People lost their jobs, people had their homes foreclosed on and there was no way that they were going to be spending money. That’s a demand shock. Even though the supply was there, there was no demand for any goods.

However, currently we have both. A supply and a demand shock. Supply as in US companies not been able to operate the way they normally would. They can’t get the same amount of exports as normal due to the pandemic. A lot of them have been in lockdown, and this has slowed production. So that’s supply.

But also, it doesn’t take a genius to know that we’ve got a demand shock. People have lost jobs. People aren’t as confident about the economy and they’re not spending money! So demand is not there.

It’s the double whammy and this is what makes the current economic conditions worse than normal.

As Jim Rickards said “this is the first economic shock that most economists can think of that was both a supply shock and a demand shock”.

“The happy talk from Wall Street and the White House is an illusion. The worst is yet to come”.

So we can safely say that Rickards, is not the biggest fan of how the U.S economy is looking and it’s potential future outlook.
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DISCLAIMER: It's important to note that I am not a financial adviser and you should do your own research when picking stocks to invest in. These are just some of my viewpoints, by no means would I recommend watching one YouTube video and then immediately buying that stock. This video was made for educational and entertainment purposes only. Consult your financial adviser.

Видео Jim Rickards: Prepare For The New Great Depression канала Cooper Academy - Investing