We start with the quantity theory of money, which links the money supply to prices
The money supply has exploded since 2008 as the Federal Reserve has expanded its balance sheet through quantitative easing
Even though the money supply is expanding, the velocity of money is tanking
The Fed needs to figure out how to remedy falling money velocity
And it's already tried quite a bit
JIM RICKARDS: Here's How To Trade In A World Of Currency Wars And Potential Collapse
JIM RICKARDS: Here's How To Trade In A World Of Currency Wars And Potential Collapse
JIM RICKARDS: Here's How To Trade In A World Of Currency Wars And Potential Collapse
The Fed's models rely on an outdated view of financial markets
Markets are more like complex systems, which tend to move away from equilibrium, rather than toward it
And complexity and interconnectivity have increased considerably over time
Here's another look at that
There are a few different paths forward for the international monetary system
The first is a world of multiple reserve currencies, as opposed to just one (the U.S. dollar)
Another is a system revolving around IMF Special Drawing Rights
There's also a return to the gold standard
The United States holds the most gold in the world
Unless you count the euro zone as a single entity
JIM RICKARDS: Here's How To Trade In A World Of Currency Wars And Potential Collapse
The stock market is nowhere near a high in gold terms
JIM RICKARDS: Here's How To Trade In A World Of Currency Wars And Potential Collapse
Here are some trade ideas
JIM RICKARDS: Here's How To Trade In A World Of Currency Wars And Potential Collapse
JIM RICKARDS: Here's How To Trade In A World Of Currency Wars And Potential Collapse
