The next financial collapse will
resemble nothing in history. . . . Deciding upon the best
course to follow will require comprehending a minefield of
risks, while poised at a crossroads, pondering the death
of the dollar."
The international monetary system has collapsed three times
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 the global
economy. Now James Rickards, the acclaimed author of Currency
Wars, shows why another collapse is rapidly approachingand
why this time, nothing less than the institution of money
itself is at risk.
The American dollar has been the global reserve currency
since the end of the Second World War. If the dollar fails,
the entire international monetary system will fail with it. No
other currency has the deep, liquid pools of assets needed to
do the job.
Optimists have always said, in essence, that there's nothing
to worry aboutthat confidence in the dollar will never truly
be shaken, no matter how high our national debt or how
dysfunctional our government. But in the last few years, the
risks have become too big to ignore. While Washington is
gridlocked and unable to make progress on our long-term
problems, our biggest economic competitorsChina, Russia, and
the oilproducing nations of the Middle Eastare doing
everything possible to end U.S. monetary hegemony.
The potential results: Financial warfare. Deflation.
Hyperinflation. Market collapse. Chaos.
Rickards offers a bracing analysis of these and other threats
to the dollar. The fundamental problem is that money and
wealth have become more and more detached. Money is transitory
and ephemeral, and it may soon be worthless if central bankers
and politicians continue on their current path. But true
wealth is permanent and tangible, and it has real value
The author shows how everyday citizens who save and
invest have become guinea pigs in the central bankers'
laboratory. The world's major financial playersnational
governments, big banks, multilateral institutionswill always
muddle through by patching together new rules of the
game. The real victims of the next crisis will be small
investors who assumed that what worked for decades will keep
Fortunately, it's not too late to prepare for the
coming death of money. Rickards explains the power
of converting 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
international monetary system is entirely foreseeable. . . .
Only nations and individuals who make provision today will
survive the maelstrom to come."