Tomorrow — Sept. 30 — is a watershed moment in the saga of the collapse of the international monetary system. I’ve been making a nuanced argument for over a year about Sept. 30. Tomorrow, a new version of the International Monetary Fund’s special drawing right (SDR) will go live. It’s important you understand the facts and implications about this development… and not just the sound bites or “bumper sticker” information that you’ll read in headlines or short messages.
The material we publish is carefully researched, written and published. We don’t like to make claims without backing them up.
So if you’ve seen my writings about Sept. 30, please read this entire issue. It’s probably the most important thing you’ll read all month.
My thesis is simple: The international monetary system is due for a collapse — meaning a loss of confidence in paper currencies. This is what I meant when I titled my second book The Death of Money.
This kind of collapse has happened three times in the past 100 years — in 1914, 1939 and 1971. Each time, the system was replaced and reset when leaders of the world’s powers assembled and rewrote what are called “the rules of the game.”
For reasons that I’ve carefully chronicled in my three books and my newsletter Rickards’ Strategic Intelligence, the global monetary system is primed for another collapse. Everything that made 2008 terrible has become a complete nightmare today.
Even scarier, the world’s central banks will not be able to rescue the system when it does collapse.
“Since Federal Reserve resources were barely able to prevent complete collapse in 2008,” I wrote in my New York Times best-seller The Death of Money, “it should be expected that an even larger collapse will overwhelm the Fed’s balance sheet.”
Simply put, next time, printing another $3 trillion-plus won’t be politically feasible. “The specter of the sovereign debt crisis suggests the urgency for new liquidity sources, bigger than those that central banks can provide, the next time a liquidity crisis strikes. The logic leads quickly from one world to one bank to one currency for the planet.”
Leading the way will be the International Monetary Fund. “The task of re-liquefying the world will fall to the IMF because the IMF will have the only clean balance sheet left among official institutions. The IMF will rise to the occasion with a towering issuance of SDRs, and this monetary operation will effectively end the dollar’s role as the leading reserve currency.”
I like to explain it like this…
In 1998, when Long Term Capital Management collapse, Wall Street bailed out the hedge fund.
In 2008, when the financial system collapsed, central banks and government bailed out Wall Street.
Now, when the central banks and government collapses, who will bail them out? And with what?
The answers are: The International Monetary Fund… and SDRs.
Tomorrow is a critical day in that story. Understand it… factor into your investment decisions… and watch for more developments. We’re ahead of the curve, and I don’t want you to miss a beat.
I’ve assembled the top seven questions readers have been sending me about tomorrow, below. Please read them carefully...
Regards,
Jim Rickards
for The Daily Reckoning
P.S. I’ve prepared a special report detailing just how critical a date tomorrow is. I explain not only how tomorrow might trigger events that could ultimately gut the U.S. stock market and cannibalize your retirement savings... but how it could ultimately end what we’ve come to know as the American way of life.
If I’m right, everything around you could change. And I’m certain I’m right.
I’m writing you today not just to warn you, but so you can protect yourself. Click here now to see just how big the stakes are... and how you can protect your wealth from the approaching storm.
Poster Comment:
Buckle your seat belt. It will be a bumpy ride. I hope you do not have money in an IRA or 401k? The U.S.G. will try to confiscate it, or at least a portion of it, to pay the national debt.