Boom Bust Season 1 Episode 39 Jim Rickards: The Fed Is Tapering QE Into a Recession

Jim Rickards, a renowned economic strategist and author, is the guest on this episode of Boom Bust. He shares his insights into the Federal Reserve's decision to taper quantitative easing (QE) and why he believes it will lead to a recession.

The episode starts with a discussion about the Fed's recent policy change and how it aligns with Jim's previous predictions. He explains that the Fed's decision to taper is a response to rising inflation and that it may be too little too late. According to Jim, the inflation genie is already out of the bottle, and the Fed's actions will not be enough to rein it in.

The conversation then moves to the potential impact of the Fed's decision on the stock market and the broader economy. Jim argues that the market has been propped up by the Fed's easy money policies for too long and that a correction is necessary to reestablish normalcy. He predicts that the tapering of QE will trigger a market downturn that will lead to a recession.

Jim also offers his perspective on the ongoing trade tensions between the US and China. He believes that the trade war is part of a broader trend towards de-globalization, as countries increasingly prioritize their national interests over global cooperation. This trend, combined with rising levels of debt and a slowing global economy, creates a "perfect storm" for a recession.

In the final segment of the episode, the hosts ask Jim about his outlook for the US dollar and alternative assets like gold and bitcoin. Jim explains that he sees the dollar as overvalued and vulnerable to a correction. He also believes that gold and bitcoin are attractive alternatives for investors looking to diversify their portfolios and protect against inflation.

Overall, this episode provides an in-depth analysis of the economic forces at play in the current global climate and offers valuable insights into how investors can navigate these challenging times. Jim's expertise and experience make him a compelling guest, and his predictions and recommendations are sure to be of interest to anyone interested in economics or finance.