The Death of Money
The Death of Money
The Coming Collapse of the International Monetary System
Portfolio, Hardcover, 9781591846703, 368pp.
Publication Date: April 8, 2014
The international monetary system has collapsed threetimes in the past hundred years, in 1914, 1939, and 1971.Each collapse was followed by a period of tumult: war, civil unrest, or significant damage to the stability of theglobal economy. Now James Rickards, the acclaimedauthor of Currency Wars, shows why another collapseis rapidly approaching and why this time, nothing lessthan the institution of money itself is at risk.
The American dollar has been the global reservecurrency since the end of the Second World War. If thedollar fails, the entire international monetary system willfail with it. No other currency has the deep, liquid poolsof assets needed to do the job.
Optimists have always said, in essence, that there snothing to worry about that confidence in the dollarwill never truly be shaken, no matter how high ournational debt or how dysfunctional our government. Butin the last few years, the risks have become too big toignore. While Washington is gridlocked and unable tomake progress on our long-term problems, our biggesteconomic competitors China, Russia, and the oilproducingnations of the Middle East are doing everythingpossible to end U.S. monetary hegemony. Thepotential results: Financial warfare. Deflation. Hyperinflation.Market collapse. Chaos.
Rickards offers a bracing analysis of these andother threats to the dollar. The fundamental problem isthat money and wealth have become more and moredetached. Money is transitory and ephemeral, and it maysoon be worthless if central bankers and politicians continueon their current path. But true wealth is permanentand tangible, and it has real value worldwide.
The author shows how everyday citizens who saveand invest have become guinea pigs in the centralbankers laboratory. The world's major financial players national governments, big banks, multilateralinstitutions will always muddle through by patchingtogether new rules of the
game. The real victims of thenext crisis will be small investors who assumed that whatworked for decades will keep working.
Fortunately, it's not too late to prepare for the comingdeath of money. Rickards explains the power ofconverting unreliable money into real wealth: gold, land, fine art, and other long-term stores of value. As he writes: The coming collapse of the dollar and the internationalmonetary system is entirely foreseeable. . . . Only nationsand individuals who make provision today will survivethe maelstrom to come.
"A fast-paced and apocalyptic look at the financial future, taking in financiers' greed, central banks' incompetence and impending Armageddon for the dollar...Rickards may be right that 'the system is going wobbly.'"
—The Financial Times
“A terrifically interesting and useful book . . . fascinating.”
—KENNETH W. DAM former deputy secretary of the Treasury and adviser to three presidents
“The Death of Money contains very big, provocative ideas clearly explained and delivered in an evenhanded tone that steers away from the sensational proclamation yet successfully undercuts conventional market wisdom. Rickards’s insight enables him to connect the dots in a way that few others can. A worthy successor to Currency Wars.”
—JOHN HATHAWAY portfolio manager, Tocqueville Gold Fund
“The Death of Money is an engrossing account of the massive stresses accumulating in the global financial system, especially since the 2008 financial crisis. Jim Rickards is a natural teacher. Any serious student of financial crises and their root causes needs to read this book.”
—JOHN H. MAKIN, PH.D. resident scholar, American Enterprise Institute; former chief economist, Caxton Associates
“A crucial primer for investors and consumers for what lies immediately ahead for the United States and a world that remains entirely dependent upon the dollar. The Death of Money is an important new book for those who worry about the future of our country.”
—R. CHRISTOPHER WHALEN noted bank analyst; author of Inflated
“Rickards’s analysis of the inflation-deflation paradox, dangerous adversaries to the dollar, and the Fed’s strategy is insightful. Following his bestseller Currency Wars, this book is even better. A great book makes you think differently about the world—and this one does just that.”
—DON YOUNG twenty-five-time Institutional Investor All-Star Analyst; former board member, Financial Accounting Standards Board