Rickards on Iran and QE3
Jim Rickards, author of Currency Wars, was on Capital Account last night and he thinks both QE3 and war with Iran are distinct possibilities. Basically, Rickards is saying policy makers will do whatever it takes to keep the asset-based economy alive and well. Take a look.
My take: – QE3 has already begun – and it’s called rate easing. And isn’t the Anti-Iran rhetoric similar to the anti-Iraq rhetoric? That tells me that the possibility of military confrontation cannot be dismissed, something that is (medium-term) oil bullish but also sows the seeds of demand destruction and another bout with debt deflation and an even more aggressive policy response.