In the US, we have budget deficits, trade deficits, high debt to GDP ratios, and out-of-control spending coupled with political dysfunction and a borderline civil war.

Everything is bad.

So, why is the dollar still so strong?

Jim Rickards is an American investment banker, lawyer, economist, op-ed contributor, and author. His books include, The New Great Depression: Winners and Losers in a Post-Pandemic World,  Currency Wars: The Making of the Next Global Crisis, The Death of Money: The Coming Collapse of the International Monetary System, and now available for pre-order, Sold Out: How Broken Supply Chains, Surging Inflation, and Political Instability Will Sink the Global Economy.

Today on The Wiggin Sessions, Jim joins me for Part 2 of our conversation. We discuss the difference between a recession and a depression and where the US is headed.

He'll walk us through the two types of inflation and why the Fed's interest rate increases will only serve to deepen our recession pain.

We discuss the key to the US dollar's strength and the signs he's seeing that indicate we're headed for a global liquidity crisis.

Plus, he shares a new product to help individual investors understand how markets work to improve their investment strategies.

Key Takeaways

Jim walks us through the difference between a recession and a depression

How the private National Bureau of Economic Research uses the two-quarter declining GDP rule to declare a recession

Why growth below trend is the mitigating factor for a depression

Why Jim thinks the trend of depressed growth and lost wealth has had us in a depression since 2007

Why the printing of money is not what's causing our inflation

Why the dollar looks like a safe haven when everything else is falling apart in inflationary periods

Why securities collateral is the key to the dollar's structure and strength

Why 'credit wariness' is the first sign of a global liquidity crisis

How the power of the dollar could cause banks to miss a collateral call (sending us back to 2008 or worse)

The difference between demand-pull and cost-push inflation

The two things that are always true in a 'supply shock' cost-push inflation situation

Why demand-pull inflation is almost always phycological

How high prices decrease demand and‌ lower prices

Why the Fed's current demand-destroying policies will deepen our recession (and cause unemployment to go through the roof)

Connect with Jim Rickards

Paradigm Press

Jim on Twitter

Jim on Facebook

Connect with Addison Wiggin

Consilience Financial

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Resources

Jim Rickards’ Countdown To Crisis

Jim Rickards’ Strategic Intelligence

Sold Out: How Broken Supply Chains, Surging Inflation, and Political Instability Will Sink the Global Economy

The Death of Money: The Coming Collapse of the International Monetary System

Jim Rickards-Democracy, Cryptocurrencies, and Global Control-EP40

Jim Rickards – Insider Reveals Predictions and Opinions About The Great Reset, Global Elite, And The Potential Coming Chaos - EP17