[The following interview with CIA financial-threat analyst Jim Rickards occurred recently at a secure location in Washington, D.C. All facts have been verified.]
Hello. I'm John Burke for the Daily Reckoning. We are coming to you today from our perch overlooking the White House in our nation's capital. Welcome to this emergency briefing with Jim Rickards, financial threat and asymmetric warfare [00:01:30] advisor to the White House, Pentagon, and CIA. Rickards joins us today with an urgent warning, one he hopes all Americans will heed. According to Jim Rickards and members of the US Intelligence community, the time to prepare has arrived.
Mr. Rickards, welcome to our broadcast.
Jim Rickards: My pleasure, John. Thank you for having me.
John Burke: Now your team has identified a network of elite operatives, and they have wormed their way into many of the most powerful financial institutions on earth. This list includes [00:02:00] the International Monetary Fund, the Bank of International Settlements, the World Bank, the United Nations, and every central bank in the G20, including our own Federal Reserve. When the signal sounds, you've predicted that this network will pull the plug on the global financial system. That will cause every bank, brokerage, and business to go dark in a massive coordinated attack. Their latest hit list, if you will, includes some 5,967 [00:02:30] banks, such as Wells Fargo, Citigroup, and JP Morgan Chase, but they won't stop at the banks.
These elite operatives will move to take control of approximately 3,800 asset managers as well. Jim, you expect to see them seize control of Blackrock for nearly $5 trillion dollars, Fidelity for $2 trillion, Vanguard for $3 trillion, and UBS and State Street for a combined $5 trillion or so. When the freeze comes, citizens nationwide will lose access [00:03:00] to their money almost instantly. No cash will be allowed to enter or exit the system without the network's approval, and Donald Trump's presidency will not likely survive the chaos about to ensue.
Before we get to the details about this, I want to remind our viewers of your background, Jim. In the 1970s, you helped the White House to craft the Petrodollar Accord. Your actions helped to save the US dollar, and the oil embargo, and sidestep war in the Middle East. [00:03:30] In 1981, you helped the Reagan administration negotiate an end to the Iran hostage crisis, saving 53 American lives. In the 1990s, you helped the Fed wind down long-term capital management, averting a collapse of the global financial system. After 9/11, the CIA recruited you to assist on a counter terrorism project called Project Prophecy. You created a system to detect terrorist attacks before they happened by decoding complex financial signals. [00:04:00] In 2006, Prophecy detected a looming terrorist attack in London. Officials were able to intercept the attackers, saving countless lives. That same year, you began warning our intelligence officials in Washington of a looming financial crisis.
In September of 2006, the CIA circulated your warning among its senior staff. Your full thesis appeared in the CIA's official journal, Studies in Intelligence. That material remains classified; however, [00:04:30] on August 24, 2007, you shared the same warning with officials from the US Treasury Department. You even supplied Treasury with a plan for averting the crisis called Proposal to Obtain and Manage Information in Response to Capital Markets Crisis. Unfortunately, Washington failed to act on your warnings in time. The result was the worst financial crisis since the Great Depression.
Now, Jim, you say we're about to experience a radically new kind of crisis, one that will freeze the financial [00:05:00] system, leading to global chaos. In your new book, The Road to Ruin, you write, "The next financial crisis will not be merely a bigger version of the 1998 and 2008 crises. It will be qualitatively different. It will encompass multiple asset classes on a global scale. It will exhibit inflation not seen since the 1970s, insolvency not seen since the 1930s, and exchange shutdowns not seen since 1914. State power will be summoned to contain panic. [00:05:30] Capitalism will be discredited once and for all." Not only will the coming crisis destroy more investor wealth than 2008, not only will it last much longer than the great depression, this crisis will be historic for another reason, and I'm talking about this network of elites using the crisis for cover. At the appointed hour, they'll launch their attacks, and the financial system will go dark worldwide. Trillions will vanish instantly, and in [00:06:00] many cases permanently. Hundreds of millions of Americans will be cut off from their own money for months or even years.
This sounds like the biggest confiscation of wealth in history, there's no doubt. Jim, let me ask you. Can you please share with our viewers where this threat is coming form and how to prepare?
Jim Rickards: Let's start with some background and context, because I know this must sound hard for some viewers to believe. I was having dinner with a friend not long ago in New York City. We met at a place called Ariel, which is in midtown. My dinner companion [00:06:30] that night was a senior advisor to Blackrock. As you may know, Blackrock is now the largest asset manager on the planet. It directly manages $5 trillion dollars in assets, and it oversees another $11 trillion dollars through its Aladdin platform. That means one firm controls more money than the GDPs of China, Russian, and Japan combined.
Anyway, my dinner companion happens to work directly for Blackrock's CEO. As we nursed our white wine and the evening wore on, she let something slip. If I remember her words, she said something like, "They want [00:07:00] to tell us we can't sell." What was she talking about? Who was she talking about? I placed a few calls, first to my contacts in Washington, then to a few people on Wall Street. Soon I was on a plane for a series of meetings, to London, to Geneva, back to New York, then down to South America. As I began connecting the dots, a pattern emerged. It revealed a network of more than 189 individuals positioned inside the world's major financial institutions. Some of them hold senior positions inside the IMF, World Bank, [00:07:30] and every central bank in the G20, including our own Federal Reserve. These elites share one vision, and they're about to make it a reality. That vision is One World Order, One World Taxation, and One World Money.
They've worked for years behind the scenes preparing to realize that vision. They've literally rigged the laws of international finance. Everything is basically in place right now, and there's essentially no way to stop this from happening. When the crisis hits, they'll flip the switch, freezing the global financial system. That will give them time [00:08:00] to reset the world economy according to their vision. As the coming crisis unfolds, President Trump will be powerless to stop it; in fact, trying to stop them would probably weaken the President's power altogether.
John Burke: That is amazing, Jim, really. What did these elites want from your contact at Blackrock?
Jim Rickards: Basically, they want to classify Blackrock as too big to fail. The technical term is Systemically Important Financial Institution or SIFI. That designation normally applies to banks, such as Bank of America. If your bank gets the SIFI [00:08:30] label, it means the government will bail you out first in a crisis, but it also means you must turn over control of your bank until the crisis subsides. In this case, they're trying to reclassify Blackrock, an asset manager, as too big to fail. If they succeed, they'll be able to freeze Blackrock when the crisis hits. Blackrock clients won't be able to sell. They won't be able to buy either. Their accounts will go dark indefinitely, and the elite operatives will take control of Blackrock's assets remotely via the internet. Our research shows that their Ice-Nine Plan [00:09:00] goes much, much deeper than that.
John Burke: You refer to their plan as Ice-Nine. You just said that. What does that mean?
Jim Rickards: It's a reference to the Kurt Vonnegut novel Cat's Cradle. In the book, a mad scientist creates a new form of water molecule called Ice-Nine. When it comes in contact with other water molecules, it freezes them at room temperature. One drop of Ice-Nine can freeze the whole ocean. That's what these elite operatives are about to do to the world economy.
John Burke: Can you share with our viewers exactly who these operatives are and what their ultimate [00:09:30] goal might be?
Jim Rickards: Like I said, John, more than 189 elite agents have slowly wormed their way into leadership positions across the board. They now sit at or near the head of the IMF, the World Bank, and even our own Federal Reserve. They also control much of what happens at the central banks of China, Russia, India, Brazil, Canada, and Europe. As you know, these institutions form a kind of global superstructure. It forms a kind of snare net encircling all nations. Their leaders aren't democratically elected. They're not accountable [00:10:00] to you and me. They're beyond the reach of government and citizens, and yet they hold the fate of the global financial system in their hands.
To get a sense of how they operate, imagine an array of floating spheres. One sphere is labeled IMF, one is labeled Fed, one is labeled Bilderberg, one is labeled Wal Street, one is labeled Central Banks, one is labeled Intelligence Agencies, one is labeled media, and so on. The elites inhibit all of these spheres, and together the network forms a kind of 3D Venn diagram. [00:10:30] As I see it, regardless of what sphere they inhabit, the elites all share the same vision, One World Order, One World Taxation, and One World Money. All of their actions are geared toward moving that agenda forward.
John Burke: Are you able to share the identities of these elites with our viewers?
Jim Rickards: We've identified more than 189 individuals who are, in many cases, hiding in plain site. Regardless, they all share the same vision. One World Order, One World Taxation, and One World Money. A short list would include Christine Lagarde, [00:11:00] Managing Director of the International Monetary Fund, IMF; Mark Carney, Governor of the Bank of England; Raghuram G. Rajan, Vice Chairman of the Bank for International Settlements; Haruhiko Kuroda, Governor of the Bank of Japan; William C. Dudley, President of the Federal Reverse Bank of New York; Agustin Carstens, Governor of the Bank of Mexico; Janet Yellen, Chairman of the Board of the Federal Reserve System; Mario Draghi, President of the European Central Bank; Zhu Min, Former Deputy Managing Director of the IMF; Zhou [00:11:30] Xiaochuan, Governor of the People's Bank of China; Robert E. Rubin, Chairman of the Council on Foreign Relations.
This A-list of central bankers and other elites is just the tip of the iceberg. Of course, not one of these elites will tell you outright what's going on, but I've seen and heard enough to connect the dots for myself. Not long ago, for example, I met with one of their senior operatives. He's a leading economist who served as the chairman of the Federal Reserve during the last crisis. He's considered one of the most influential minds in banking today. We met privately during a conclave [00:12:00] in Seoul, South Korea. Of course, I'm taking about Ben Bernanke. I came away from my meeting with him stunned, and convinced that Ice-Nine was real. Not long before that, I set up a one-on-one meeting with another member of the network. His name is Zhu Min, the former Deputy Governor of China Central Bank. Until recently, he served as Deputy Managing Director of the International Monetary Fund. Zhu is a brilliant guy, like Bernanke, and he's pleasant and well meaning. There's no doubt in my mind that he's also a member of the elite network preparing to impose Ice-Nine on millions [00:12:30] of Americans.
I wasn't done with my research. I have since met with dozens of senior officials, intelligence analysts, and former Wall Street colleagues. My quest led to a final meeting, a face-to-face summit with the head of Bilderberg. We met at Rockefeller Center in Manhattan, and he was very eager to get my take on the Euro as a currency. I was happy to provide it, of course, in exchange for some valuable intelligence. As I say in my new book, he did not have horns; in fact, he gave me a nice gift when we parted ways, a blue Swedish vase. I keep it in my writing studio at my [00:13:00] home in Connecticut. My point is, I came away from all three meetings convinced of one thing. When the next crisis hits, the elites are planning to freeze the financial system, and they'll replace it with a new system, one not based on the US dollar. When that happens, we'll wake up to a very strange and disturbing new reality.
John Burke: For our viewers that are watching today, what might their reality look like that morning? How does this manifest?
Jim Rickards: First, they'll have gone to bed knowing that a massive financial crisis was underway, but when they wake up, they'll find it has worsened and the contagion has spread worldwide. [00:13:30] When they go to withdraw money, their ATM will say, "Closed temporarily." When they go to sell stocks, their account will say, "Transaction not available." When they go to their local business, that business will only accept cash, if it's open. As citizens realize they're being barred from their money, riots will erupt. It's going to get really bad, really quickly.
John Burke: How would such a freeze actually work, and wouldn't that be highly illegal?
Jim Rickards: Well, it wouldn't be illegal technically, because they've been quietly laying the groundwork for years. They've rigged the financial laws, changed the rules of the game [00:14:00] to allow this to happen. The stage is set. They have the leverage in place. The lights are positioned. Now someone just needs to flick a switch and they'll impose Ice-Nine rapidly. Again, all of this will be legal, because they've rigged the system in their favor.
Here in the US, for example, Congress pushed through something called the International Emergency Economics Powers Act, or IEEPA. This allows the government to freeze accounts, assets, even whole institutions at will. The only condition is that there is some threat to national security with a foreign connection. Of course, with the global [00:14:30] market, every financial crisis has a foreign connection. Any systemic crisis fits the bill. The thing is, when the next crisis hits, it's going to be so bad, President Trump won't have any choice but to go along with the elite's plan.
John Burke: Wow. You have to admit that sounds somewhat hard to believe. How could these operatives actually freeze a whole country's financial system?
Jim Rickards: Well, fortunately, we have some recent real life examples to study. The elites have been conducting a series of dry runs for years, leading up to Ice-Nine. [00:15:00] Look at Cypress for example. A few years ago the Cypriot economy was in trouble, especially the banks. The IMF stepped in and loaned Cypress $10 billion dollars, but the loan came with strings. Now pay attention, because this is precisely what they're going to do, but imagine it on a global scale. In exchange for the capital injection, the IMF demanded control over the Cypriot banking system. More specifically, the IMF froze the entire system, literally every bank in the country. They did that to ensure the IMF's demands were met, [00:15:30] including strict capital controls.
How did all this impact regular citizens? Their local ATMs went dark. Even the bank branches closed, permanently in some cases. Citizens could not withdraw cash. They couldn't even transfer funds from one account to the other. What came next? Wealth extraction on a grand scale. The IMF basically stole 6-10 percent of all the cash in the Cypriot bank accounts. How did the elites justify this? They called it a levy. The price citizens had to pay for their government's missteps. [00:16:00] Keep in mind these asset confiscations were done at the balance sheet level with the institutions themselves. They never had to confiscate individual accounts. They froze every account by controlling a handful of the country's biggest banks. When the next crisis hits, we're going to see this here in the US and around the world, and it will be a highly coordinated global attack in the entire system simultaneously.
John Burke: All right, but hold on here. Wasn't Cypress a fairly isolated example of the globalist elites taking over a nation's banking system?
Jim Rickards: Not even close, John. The same thing has happened in other places. [00:16:30] It's happening in Greece right now. As you know, Greece has been navigating a massive debt crisis for years. In 2015, the IMF and their partners moved in to recapitalize Greece's banks. That just means they agreed to pump capital back into the stalled system, like priming a pump. In return, the IMF demanded control of the banks, and citizen's individual accounts by default. Suddenly, Greek families weren't allowed to withdraw more than $460 per week. Imagine trying to pay your mortgage, gas, and groceries on less than $500, let alone your medical [00:17:00] insurance. Of course, it led to widespread panic, rioting, and worse. That's exactly what we'll see on a global scale when the next crisis hits.
John Burke: Clear a national freeze can devastate the citizens big time,
so my question is, why would the elites even want to do that?
Jim Rickards: Well, you're right, of course. This has been devastating to Greek citizens, but the short answer is control. To save itself from insolvency, Greece gave up its economical autonomy. The country is, for all intents and purposes, under the control of the European Central Bank and the [00:17:30] IMF, yet this top-down approach still hasn't solved the problem. As one Greek official told Reuters, the banks are in a deep freeze, but the economy is getting weaker. This is a microcosm of what we're about to see in America and around the world.
John Burke: But still, I mean, really, aren't Greece and Cypress fairly isolated examples?
Jim Rickards: Unfortunately, if you think governments tend to keep their hands off citizen's assets, you're mistaken. Elites have a long history of seizing control of people, institutions, and especially money. In February of 1917, [00:18:00] for example, the Russian elite, who believed in a One World worker's party, closed the stock market. Folks lost every penny. Their portfolios literally vanished overnight. The Russian exchanges remained closed for nearly 70 years. They reopened in January of 1992. In December of 1941, China closed its stock market without warning. It stayed closed for four years. The German government closed the stock market from July 1931 to April 1932 during a credit crisis. The list of examples goes [00:18:30] on and on, and it goes back decades.
John Burke: But, again, I have to ask you, could such a systematic freeze really happen here in the United States?
Jim Rickards: It already has happened, John, multiple times, just on a smaller scale. In 1914 the Treasury Department shuttered the New York Stock Exchange for four months. Citizens couldn't buy or sell. They couldn't cash out. They couldn't do anything. England's elites did the same thing to the London Stock Exchange. We've seen more recent examples, too. If you want to see what a modern-day Ice-Nine freeze looks like, take [00:19:00] a look at this image. Those blue dots represent trades on the New York Stock Exchange on July 8, 2015. You can see where they abruptly stop. That is the moment the elites running the exchange pulled the plug. You weren't allowed to buy or sell a single share, period.
I want people to take a closer look at this chart. Now imagine it represents all the banking and brokerage activity on earth. You see that point around 11:33 a.m., when you had the first big drop-off in activity? That represents the beginning of the coming Ice-Nine cash freezes. [00:19:30] Now you see when all the activity stops and the screen goes totally white? All activity ceases. The system goes dark. The pattern is the same with these freezes every time. You have some initial trigger or shock, then you have an immediate freeze, and the elites emerge with more control. You see it over and over, shock, freeze, power grab, shock, freeze, power grab. With Ice-Nine, we'll see a global shock and a global freeze, and then we'll see the elites making a global power grab.
Here's another example, again with the New York Stock [00:20:00] Exchange. On October 27, 1997, the Dow had lost 350 points quickly. Again, the elites responded by shuttering the entire New York Stock Exchange instantaneously. Imagine if you had been trying to sell? Your money would have been locked into the system and your net worth would have been plummeting by the second. Meanwhile, you're just watching it happen, totally powerless to do anything about it. What we're seeing right now is the increase in the tempo, these mini-shocks and mini-freezes. They're coming faster and faster. You had 9/11, followed by a freeze; [00:20:30] we had the flash-crash of 2010, followed by a freeze; and in 2012 with Hurricane Sandy.
John Burke: But you're talking about American stock markets. If the elites do freeze our exchanges and brokerages accounts, won't our cash be safe in the banks?
Jim Rickards: No; in fact, the biggest bank freeze to date happened right here in the USA. Of course, I'm talking about Roosevelt signing Proclamation 2039 in 1933. With one stroke of his pen, FDR shuttered every bank in America. A few weeks later, he followed up by freezing the entire gold [00:21:00] market. Executive Order 6102 literally outlawed citizens from owning gold. That freeze lasted 41 years until Gerald Ford ended that freeze in 1974. When the coming crisis hits, we'll see this repeated on a larger scale through the IMF, World Bank, and the Fed. Again, there will be nothing the White House can do. They have no direct control over the institutions that will carry this out. Not even the US President can control the Fed. Same with the IMF, the World Bank, the Bank of International Settlements, or the People's Bank of China. [00:21:30] When the crisis hits, it will likely be bad enough that Trump would get onboard anyway, but it won't be enough to save his presidency. Even if he survives his first term, he won't get a second one.
John Burke: We really haven't addressed one important factor here. You say the elites will need an excuse to impose Ice-Nine on America and that excuse will come in the form of a massive financial crisis, much worse than 2008. You say that this crisis could come within the next six weeks. Regardless of the actual day it hits, you say the coming crisis is unavoidable. Please explain [00:22:00] to our viewers what you mean by that exactly.
Jim Rickards: In the aftermath of the 2008 crisis, the Pentagon recruited me for another special project. Our goal was to create a new system for modeling and predicting systemic financial collapse. I received an invitation to a classified meeting at the Los Alamos National Laboratory in New Mexico. This meeting occurred on April 8, 2009. In attendance were several of our country's leading physicists and national security experts. We met at Los Alamos for an important reason. The lab there houses the most powerful modeling [00:22:30] systems on the planet. They're running predictive modeling simulations on everything, from weather events to nuclear chain reactions. Los Alamos National Laboratory takes a system-based approach to predictive modeling. Their computers don't look at events in isolation. They look at the whole system, how the events interact with each other. It's a relatively new branch of physics called complexity theory. You can look at the approach in a number of different ways. It's like seeing the forest for the trees. It's like understanding all the dominoes in a chain reaction.
Let me give you an example [00:23:00] of this approach. Let's say you have 10 dominoes lined up on a table, and you have two observers. One observer, Joe, sees all 10 dominoes from the beginning of the experiment. The second observer, Sally, can only see one domino, the seventh in the series. Looking at domino number seven, Sally can still make plenty of observations. It appears stable, for example. It also appears just as likely to fall in one direction as the other. She can study it for years and she can assume it will never fall. On the other hand, Joe sees all 10 dominoes, including [00:23:30] number seven. One day, a force comes along and tips domino number one into domino number two. At that moment, Joe can tell you with near 100 percent certainty that domino seven is about to fall . Sally, on the other hand, continues on blissfully unaware, yet with total expertise when it comes to domino number seven. She just can't see how it fits into the system of dominoes, and she can't see the inevitable event coming. When domino number seven falls, Sally is caught almost completely unaware.
In essence, Sally represents the mainstream economist and media pundits. [00:24:00] Joe represents the approach we developed at Los Alamos National Laboratory. I've since refined that approach into an advanced threat detection system called Los Alamos Multifactor Projection, or LAMP. LAMP uses advanced computer assisted modeling and system based analysis to shine a light on systemic risk, and it can show us for the first time all the dominoes at play in the world financial system. You can look at our economy like a very long series of dominoes. Some run north-south, some run east-west, but they all [00:24:30] interconnect at some point. Together they form a complex system. Our Los Alamos multifactor model was designed to analyze that system.
What are we seeing from our analysis? In complexity terms, our system has entered into a critical state. The dominoes have begun to fall, and the next crisis is now inevitable. When that crisis hits, the elites will impose Ice-Nine, freezing the world financial system.
John Burke: You've shown us how they've rigged the system in their favor, and when the coming crisis hits they'll simply flip a series [00:25:00] of switches, freezing the whole system very rapidly, and your system indicates that the dominoes have already begun to fall. Can you share with us some of what those dominoes might be?
Jim Rickards: The first domino shock hit on October 15, 2014, between 9:33 and 9:45 a.m., liquidity pretty much disappeared in the Treasury market, and that's the most liquid market in the world. Inside of about six minutes, yields tanked 16 basis points, from 2.02 percent to 1.86 percent. Over the next [00:25:30] six minutes, yields jumped back up to 1.99 percent before ending the day at around 2.14 percent. The Treasury market is enormous. It moves like a glacier, not an avalanche, but this was a historic anomaly. As JP Morgan CEO Jamie Dimon said, "Treasury securities moved 40 basis points, statistically 7 to 8 standard deviations, an unprecedented move, an event that is supposed to happen only once in every three billion years or so. This was no random event. This was a domino. This was exactly what you'd expect [00:26:00] to see when a complex system goes critical.
John Burke: Let's take a look at domino shock number two now.
Jim Rickards: For years investors were loading up on Swiss francs as a safer alternative to the Euro. The demand drove the franc higher. This created a pressure in the Swiss economy, mainly driving up the price of Swiss exports. The Swiss tried to control demand by pegging the franc's value to the Euro. The idea was to make both currencies equally attractive and keep investors from piling into francs, but once the European Central Bank started talking about quantitative easing, the Swiss got nervous, and on January [00:26:30] 15, 2015, the Swiss Central Bank shocked the world and scrapped the franc to Euro pay. The Swiss franc, and major currency mind you, soared 20 percent in 20 minutes. We've never seen anything quite like it. The real losers were the Swiss stockholders. They took a 10 percent haircut almost immediately. Even the big safe companies nosedived. Credit Swiss lost 11 percent in a matter of minutes. The elites took control and triggered a bloodbath. Basically, they made it worse.
John Burke: Are there any more examples of these domino events that we should know about?
Jim Rickards: Between August 10 [00:27:00] and August 31 of 2015, the Dow tanked 11 percent. Here's what actually happened. In August of 2015 the Chinese Central Bank decided to devalue the yuan. Again, they wanted to keep the currency cheap to drive Chinese exports, so they devaluated about 3.2 percent over two days, a huge move for a major currency. What happened next? The Shanghai stock exchange plunged 43 percent, erasing $3 trillion dollars in Chinese investor wealth. Then it rippled across the Pacific and wiped out another $2.5 trillion [00:27:30] dollars here in the US. It caused similar panic across Asia, Europe, even South America.
Now let's take a look at domino shock number four. Throughout the first half of 2016, Britain was pondering leaving the European Union. The people were set to vote on June 23 for remain or leave the union. Three days before the vote, my team and I flew to London for a series of meetings. We applied the LAMP system to analyze all the factors involved. We got a hit on two important indicators.
Just before the vote, the pound jumped from [00:28:00] $1.40 to $1.50, and gold dropped from $1305 to $1260 an ounce. The market was pricing the pound in gold for remain. The experts gave almost no chance to Brexit going through, but LAMP indicated approximately a 50-50 chance of leaving or staying. With gold and the pound already priced for remain, they would stay stable if remain won, but if remain lost, gold would absolutely skyrocket and sterling would plunge.
There were two ways to play it, long play on gold and a short play on sterling. Of [00:28:30] course, leave did win. Pound sterling plunged from $1.50 to $1.32 within hours, a 12 percent decline. Again, absolutely no precedent in history for these kinds of swings in major currencies, but this provides a perfect example for how LAMP works. I applied the system to Brexit, and it modeled out a possible spike in gold. That was the next domino, of course. So I recommended that my followers go long gold on June 20, three days before Brexit.
Here's what happened. Again, LAMP indicated no meaningful movement in gold prices if remain won, [00:29:00] but it indicated a massive spike if leave won, which is what happened. The domino fell, and gold spiked 4.8 percent in a single afternoon. Had you acted on my June 20th directive, you could have made a fortune on gold, and gold stocks in particular. Gold Mountain Mining jumped $.11 a share to $.36, for example. That's a 227 percent winner in 30 days. Not bad. What this shows you is that we can now predict with reasonable accuracy what's coming next. Not only can you protect yourself, you can make a good deal of money if you prepare. [00:29:30] The other thing to notice here is how the tempo of these events is building. We're seeing unreleased energy from one force shock spilling over into the next in increasingly rapid succession.
Our next example is India. Keep in mind India is a G20 nation and the seventh largest economy in the world. On November 8, 2016, Prime Minister Modi took to the airwaves for an unscheduled announcement. During his address, he improved one of the largest scale cash freezes we've ever seen. Modi banned the use of 500 and 1000 rupee notes, [00:30:00] and they ceased being legal tender just four hours later. That means 80 percent of India's cash supply became worthless on four hours notice. That would be like someone banning the use of $5 bills and $10 bills by midnight tonight. Imagine the chaos that would cause here. Of course, the Indians didn't have to imagine. If I could this quote from the BBC, "The 500 and 1000 rupee notes in every man and woman's pocket were suddenly redundant. People started flocking to the banks and ATMs to withdraw cash or exchange the old notes. The queues are long [00:30:30] and people are short of cash. Even buying daily essentials like milk and bread has become difficult. Police have had to be called in at some banks and ATMs to calm tempers."
The government's publicly stated aim was to end corruption. That's what they always say. The real aim was wealth extraction and total taxation. Until the cash freeze, some 90 percent of India's economy ran on cash and private peer-to-peer transactions. The government couldn't get its cut of those transactions. Going forward, that won't be the case. So, again, forget what they're saying on TV. This is really about control and [00:31:00] wealth extraction. Of course, the local currency, the rupee, dropped through the floor when this news hit. That's what we're about to see on a global scale with Ice-Nine. We're just waiting for the next domino to fall.
John Burke: All right, wait. How about the Federal Reserve? Won't it be able to step in with more money printing to stabilize the system? Isn't that what we saw with the 2008 crisis?
Jim Rickards: The people who run the Fed are truly believers in the vision, One World Order, One World Taxation, One World Money. They've done their part to undermine the dollar, printing up $4.2 trillion dollars [00:31:30] in funny money, and all of it remains on the balance sheet. This is what pressure looks like in a complex system. Could the Fed print even more dollars? Could it increase its balance sheets to $10 trillion dollars, $20 trillion dollars? Who knows? What we do know is the coming crisis will involve a catastrophic liquidity shortage. There won't be enough capital in the system to keep the world economy going. But the Fed won't be in a position to print more dollars like they did the last time. That will leave the task of refloating the system to their fellow elites at the IMF. The IMF will [00:32:00] take over and reset the monetary system, but not with dollars. This is how eras end. This is how empires and presidencies end.
John Burke: I'm sure some of our viewers are overwhelmed right now, so can you please summarize everything we've covered up to this point so folks can start preparing?
Jim Rickards: Our LAMP model shows the coming crisis unfolding in five stages. First you have the initial domino event. Second, the dominoes will go from falling in an orderly way to a series of collapses. The markets will drop an estimated 60-70 percent. Gold [00:32:30] will spike to $5000 an ounce or higher. Treasury yields will go deep into negative territory, and that's when the elites will freeze the global financial system from the top down. Within 48 hours, you'll lose access to your money. Period. In some cases, access will terminate permanently. When the elites refloat the system, they won't do it with US dollars. They'll do it with New World Currency. I'm talking about the official currency of the IMF, Special Drawing Rights.
John Burke: For our viewers who aren't familiar, what exactly are Special [00:33:00] Drawing Rights?
Jim Rickards: The IMF has invented something called Special Drawing Rights, or SDRs. From inception, the IMF intended for SDRs to replace the dollar as the new reserve currency. They've been planning for this event for many years, patiently waiting. When the next hits, we'll see SDRs taking center stage and replacing the dollar for major transactions between banks, businesses, and billionaires. The IMF has already started issuing SDR issuing SDR denominated bonds through the World Bank. When the next crisis hits, they'll refloat the world [00:33:30] financial system in exactly this way, by issuing mountains of SDRs to governments and international institutions worldwide. The dollar will get left out of the new equation and Americans will wake up too a new post-dollar reality just 48 hours later.
Here's the final twist. They won't be issuing any of these SDRs to individual Americans. We'll be left with dollars, which will become like our version of the Mexican peso.
John Burke: Why are the elites so anxious to bring about One World Money. What's the endgame?
Jim Rickards: The endgame is control and wealth extraction. [00:34:00] If you have One World Money, you can have One World Centra Bank, the IMF. Once you have One World Money and One World Order, all overseen by the elites, they can begin wealth extraction on a grand scale. I'm not just talking about taxation, although a World Taxation Plan is in the works for after Ice-Nine. I'm talking about all kinds of confiscation of assets. They'll come after every penny they can, through taxation, penalties, regulatory schemes, bank levies, trumped up criminal prosecutions, good old-fashioned thievery. In the end, we'll [00:34:30] see the rise of Neo-fascism around the world, along with massive redistribution of wealth. The elites will come out the big winners. Everyone else, including the middle class, will come out devastated.
John Burke: You write in your new book, The Road to Ruin, once capital is frozen, capitalism itself is gone. Are you saying that the coming crisis will lead to the death of capitalism itself?
Jim Rickards: Yes. I'm saying that we won't recover from the next crisis. We're about to go through a one-way door. There is no turning back. This won't be about fixing the capitalist system. It will [00:35:00] be about replacing it. All we're waiting for now is the big domino.
John Burke: That's an incredible warning, Jim, and one we here at the Daily Reckoning hope the viewers will heed; in fact, we're taking it a step further. We've partnered with Jim Rickards to produce an exclusive edition of his new book. It's called The Road to Ruin, the Global Elites Secret Plan for the Next Financial Crisis. This book reveals everything you need to know about the coming crisis, and we're rushing copies out to viewers of this presentation for free. [00:35:30] Again, we have a limited supply, so I urge you to claim your complimentary copy today. Inside, you'll discover 242 pages of truly shocking information. You'll discover how Jim's LAMP system proves the coming crisis must happen, and you'll discover exactly what's going to happen when the elites roll out Ice-Nine, including how to prepare.
You'll go inside the secret meetings that confirm these facts, including Jim's one-on-one meetings with the head of the Bilderberg group, [00:36:00] former Fed chair Ben Bernanke, Zhu Min, Deputy Managing Director of the IMF, and more. The Road to Ruin will serve as your survival guide to the coming crisis. The book is now available in bookstores for $29.95, but you won't find this edition on sale anywhere. Period.
Jim Rickards: There's a good reason for that, John. The book itself is going to be interesting to economists, journalists, and anyone who's concerned about the rampant abuses of power among the elite, but I wanted to create a special edition just for our viewers [00:36:30] here today. This edition of the book contains a special missing chapter. Inside, people will discover a detailed portfolio of recommendations. They include stocks, bonds, precious metals, currencies, real estate, and more. All of these investments are perfectly tailored for the conditions we're seeing now, and likely to see over the next six months. We spent literally hundreds of thousands of dollars in more than 10 months vetting every one of these recommendations, but folks who claim their copy of this special edition will get them all for free.
John Burke: Jim, I'm sure [00:37:00] our viewers would love to know what's in the portfolio right now. Can you share any details?
Jim Rickards: Sure. The Ice-Nine portfolio breaks down into eight asset classes. It starts with physical gold and silver. A common mistake people make is confusing physical gold with what I call paper gold. By that I mean gold futures, ETFs, gold certificates, and gold stocks. Folks should make sure they have a proper allocation to physical gold before adding paper gold to their portfolios. That's a top priority. Then you should have a large percentage [00:37:30] in cash, including some in physical notes. That sounds counterintuitive, but remember, this is what you should be holding right now as conditions change, our portfolio will adapt, and I'll keep readers updated. Next we're recommending holding land. This could include your residence, but we've zeroed in on a handful of recommended plays in this space. In particularly, I recommend looking at arable farmland and specific retirement properties.
The next allocation might surprise some people, too. I'm recommending a specific percentage in fine art. In particular, look for museum quality [00:38:00] works by known artists. Most people don't realize this, but you can own a genuine Picasso for $10,000 or less. I'll show you how. The final allocation goes to stocks, hedge funds, bonds, and venture capital. In total, the Ice-Nine portfolio contains eight asset classes. I reveal the exact percentages in the book. In the bonus chapter I provide the specific recommendations that fit within each class.
John Burke: Powerful stuff, Jim, but you know, we haven't even talked about what's in the book itself. On Page 196 you expose the identity [00:38:30] of what you call the new Praetorian Guard, the high-tech government forces that will enforce Ice-Nine and suppress the coming money riots. On Page 53 you reveal the identities of the Four Horsemen of the coming Apocalypse. These are elites. Names our viewers will recognize who are hastening the arrival of Ice-Nine and preparing ti usher in the Next World Order. On Page 107 you unmask the identity of the 14 families that really control Wall Street. These are the elite of the financial [00:39:00] elite, and you reveal how and why they loved watching Bear Sterns collapse. On Page 52 you blow the cover off the secret gathering places of the elite, including locations and dates. This is where they're planning our future without our input.
You tell readers who they are, what they're doing, and how to counter their next move. Of course, this special edition contains the missing chapter, and your proprietary portfolio for navigating Ice-Nine. But you're including [00:39:30] something else with this special edition, and I'm talking about a raft of tools our viewers can use to navigate the coming crisis. They include the book along with a series of special reports, video briefings, recommendations, and more, and together they form something called the Ice-Nine prep kit, and for viewers who claim their kits today, they'll get it all for free.
Jim, can you walk us through everything that folks will receive if they respond right way?
Jim Rickards: We expect a very fast-moving crisis, John. [00:40:00] The book will provide you with a foundation, the basic knowledge of the playing field, but things are going to start changing very quickly. We'll need to adjust our game plan as new information enters the equation. That's why you'll receive an invitation every month to a live briefing with me personally. I'll host these closed-door meetings online via secure channels. You can think of them like a series of new chapters which I'll add to your book over the next 12 months. Each month we'll assess the situation on the ground. We'll talk about what the elites are up to. I'll reveal what's going on behind the scenes [00:40:30] and the headlines. We'll expose the real actions and motives of the Fed, the IMF, the World Bank, and the elites in Washington and Wall Street. What's more, we'll stay one step ahead of their every move, and I'll recommend specific adjustments to our recommended portfolio as needed. These private conclaves will be kept secret. I would urge attendees to please not publicize the sensitive intelligence we reveal. That ensures we'll retain our information advantage.
John Burke: Normally Jim's briefings are reserved for members of Congress, [00:41:00] the White House, the CIA, and powerful insiders from firms like Blackrock and Citigroup, but finally you'll have direct access to the man who advises them all, and you'll receive this intelligence before anyone else, before the President, before Congress, and before the Federal Reserve. I hope you can see what kind of edge that will give you in the markets. You're including something else in the Ice-Nine prep kit?
Jim Rickards: Yes. What's the first thing most people do in a crisis? They panic. [00:41:30] What do investors do when they panic? They sell everything and buy gold, right? As we get closer to Ice-Nine, the gold markets are starting to gyrate pretty wildly. LAMP indicates that gold will crest to between $9000 and $10,000 an ounce long-term, but it also shows there will be massive peaks and valleys along the way, so we began modeling trace scenarios that did two things. Number one allows us to capitalize on the huge up moves we're going to see in gold, and number two protect our downside form losses. My team has, in fact, [00:42:00] discovered the perfect gold trade in this regard. It starts with an anomaly our system identified in the gold markets.
I say markets because there are really two gold markets. One is for physical gold, one is for what I call paper gold, like futures, gold certificates, gold stocks, and ETFs. You can track the price action between physical and paper gold using two ETFs. The first one is GLD, which tracks physical gold. The second one is GDX, which tracks gold mining stocks, like Barrick and Newmont. When we began modeling [00:42:30] the relationship the relationship between these two ETFs, a pattern emerged. Over the past 10 years, the miners had plummeted in price relative to gold. I can't go into too much depth here, but this pattern is reversing right now. Over the past 200 days, miners have jumped over 90 percent as a group. Gold has risen about 25 percent. That's creating a huge opportunity, but how do you play it?
We've created the perfect way to capture 10 bagger gains with very limited downside using options. We can even calculate how much folks could make on this trade down to the penny based [00:43:00] on an initial investment of just $1800. When gold goes to $1500, you'd pocket $2000, an easy double. If gold goes to $2500, you'd earn about $8000. If it goes to $5000 an ounce, you'd pocket $23,000 and so on. If you double your initial investment to $3600, all those numbers double, too, so you'd pocket $46,000 in a matter of months with just $3600 at risk. Actually much less at risk [00:43:30] because of the way we structured the trade. The remarkable thing is that our perfect gold trade removes nearly all the downside.
John Burke: You've put all the details into another new report which you call The Perfect Gold Trade, the Safest Way to 1,178% Gains. When folks claim their free copy of your book, we'll send them this report as well, also free.
Your team has had a breakthrough in another area, too. As we know, the elites are preparing to seize assets on a massive scale. They can already [00:44:00] shut down any stock exchange or bank on earth legally. You've invented a completely new kind of portfolio. Can you please tell our readers about it right now?
Jim Rickards: Absolutely, John. As we've seen, we're going to see many riots, breakdown of civil order, and, unfortunately, rampant looting. I asked myself, would it be possible to create a new kind of portfolio that would be one, completely immune to electronic asset seizures and attacks; two, diversified enough to minimize your risk over short, medium, and long terms; [00:44:30] three, so portable you could carry it in your jacket pocket for easy concealment and transport; four, capable of holding $1 million in wealth. We've run countless modeling scenarios, and we've created something unprecedented. The result, a diversified alpha positive million dollar portfolio that can fit into a 12-ounce soda can.
John Burke: That is remarkable, Jim. Can you share some of the investments in your portable portfolio?
Jim Rickards: We start with gold, of course, but beyond that we're recommending an asset most investors never think about. I'm [00:45:00] talking about jewelry. Even among hard assets jewelry is unique. For example, jewelry contains precious metals, but unlike some bullion investments, it has never been targeted for seizure by the US government. In 1933, Roosevelt confiscated gold nationwide, but he left jewelry alone. Gold was outlawed, but billions in gold circulated the entire 41 years of the gold ban. We recommend holding three specific types of jewelry in the portable portfolio. Another thing to consider, we wanted this portfolio to be highly liquid. [00:45:30] In other words, you needed the ability to spend your money in an emergency, so we've included an asset you can easily spend on anything from food to vehicles to shelter. Of course, we've selected the portfolio to generate positive returns as well.
John Burke: You've created a step-by-step guide for your readers. It's called Off The Grid Millionaire, How to Build a $1.1 million portable portfolio. We're including this intelligence briefing along with your book as part of today's special offer. Now, let's talk about one [00:46:00] more tool that folks will receive in your Ice-Nine pre kit. It's a third dossier called Future Money, Seven Ways to Profit as SDRs Replace the Dollar. You say the US dollar will fall in the next crisis. It will be replaced by Special Drawing Rights or SDRs.
Jim Rickards: Yes. The elites are racing to find a way to invest in SDRs now before they become the new reserve currency. When that happens, the value of SDRs will skyrocket. But remember, when they refloat the system, they'll flood the world economy [00:46:30] with SDRs, but that money won't trickle down to you and me. It will remain at the top of the system, in the vaults of central banks, monetary agencies, and global corporations. We'll be left with near worthless dollars for everyday transactions. So how can you sidestep the dollar meltdown and profit from the rise of SDRs, which has already begun? My team has uncovered a loophole in the system. Using this simple loophole, you can buy SDRs right now through your regular brokerage. You won't hear about this secret anywhere else, but it could make you a fortune over the next six months and [00:47:00] beyond.
John Burke: Folks will discover this secret in Future Money, Seven Ways to Profit as SDRs Replace the Dollar. In this report you show your readers the only way to invest in SDRs right now, through their regular brokerage account, but you provide six more currency investments poised to soar as Ice-Nine unfolds. Folks can make all these moves without trading risky Forex. One of them involves an unusual silver coin, [00:47:30] and you say it's the perfect compliment to your recommended gold plays.
Jim Rickards: We actually believe that silver will rise much further and faster than gold on a percentage basis. After the 2008 panic, gold surged 29 percent, but silver rose 83 percent. That's about a 3:1 ratio in terms of price action, and it's fairly typical of the silver-gold relationship. In other words, if gold soars roughly sixfold to $10,000 an ounce, silver could rise 18-fold, a 1800 percent rally. But as [00:48:00] with gold, not all silver coins are made equal. That's why we've studied this area extensively in preparation for Ice-Nine. I've identified the single best silver coin to own today.
John Burke: You reveal this coin and the two best ways to own it in Future Money, Seven Ways to Profit as SDRs Replace the Dollar. Okay. Let's review everything you'll receive when you claim your kit today. Of course, you'll receive the special edition of the Road to Ruin, complete with the missing chapter, and the Ice-Nine [00:48:30] portfolio. You'll receive secure access to 12 monthly private phone briefings with Jim Rickards himself. Plus, you'll receive all three special reports, the Perfect Gold Trade, the Safest Way to 1178% Gains; Off the Grid Millionaire, Build a $1.1 million portable portfolio; Future Money, Seven Ways to Profit as SDRs Replace the Dollar; and you'll receive everything mentioned above for free. [00:49:00] How do you claim your Ice-Nine prep kit right now? Simply agree to take Jim Rickards' monthly advisory letter for a test drive. That's it.
It's called Jim Rickards' Strategic Intelligence. This letter is read by high ranking members of our intelligence community, Wall Street titans, hedge fund managers, and other elites, but now you can access these same high level ideas with your Strategic Intelligence subscription. Strategic Intelligence delivers Jim's [00:49:30] analysis and latest recommendations every month. You'll receive first-hand intelligence on developments inside the Fed, Congress, and other powerful institutions. More importantly, you'll be able to adjust your investments accordingly, keeping at least six months ahead of even Wall Street. That gives you an information advantage, and it could very well save your family's financial life when Ice-Nine hits.
Strategic Intelligence goes well beyond the monthly [00:50:00] issues. For more details and to get started right away, simply click the button below. I want to thank Jim Rickards for joining us today. Jim, it has been a real wake-up call and, I have to say, an extremely useful conversation.
So, Jim, any parting words for any viewer out there wondering what to do next?
Jim Rickards: Well, in a word, prepare. Prepare now. Don't wait. The system is on red alert right now. The switch could be flipped tomorrow. It could be flipped next week, but when they flip the switch [00:50:30] it will freeze your accounts instantly. You will not have time to react. The only way to protect your family is with preparation. Even if you don't read the book, I would encourage you to move at least some of your assets out of the system now and be ready for whatever chaos is coming our way.
John Burke: All right. Thank you very much, Jim, for your time today. I really do appreciate that. With that, I'm John Burke for Jim Rickards and the Daily Reckoning. Signing off.