Jim Rickards: "Goldman Can Create Shorts Faster Than Europe Can Print Money"

Tyler Durden's picture

Jim Rickards, who recently has gotten massive media exposure on everything from the JPM Silver manipulation scandal, to the Greek default, was back on CNBC earlier with one of the most fascinating insights we have yet heard from anyone, which demonstrates beyond a doubt why any attempt by Europe to print its way out of its current default is doomed: "Look at what Soros did to the Bank of England in 1992 - he went after them, they had a finite amount of dollars, he was selling sterling and taking the dollars, and they were buying the sterling and selling the dollars to defend the peg. All he had to do was sell more than they had and he wins. But he needed real money to do that. Today you can break a country, you don't need money you just need synthetic euroshorts or CDS. A trillion dollar bailout: Goldman can create 10 trillion of euroshorts. So it just dominates whatever governments can do. So basically Goldman can create shorts faster than Europe can create money." Just wait until Europe finally realizes that the CDS "speculators" had all the cards in the poker game all along. And we hope Europe listens to the man: being LTCM's GC he knows all about failed bail outs.

h/t Slim Beleggen

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Turd Ferguson's picture





Euro now under 1.28 as I type.

Might be a very interesting afternoon.

MyFriendMises's picture

EUR/USD dropping like a rock. 

ColonelCooper's picture

"EUR/USD is meaningless.  Look at the markets."


Harry Wanger

earnyermoney's picture

So much for his prediction on capping the well head.

Time to boycott BP products.

Oh regional Indian's picture

Off topic but critical...

Urgent: Deepwater Horizon Spill Solution

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I know there are folks here from the industry or tangentially or historically connected with it. Please don’t e-mail me for details at this point, will take too much time to respond.

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It’s real and needs to get seen/heard at the highest/right places.

Thanks in advance.


chunkylover42's picture

are you going to post this in every thread on this site?  i'm sure your idea is great, so just call the fucking company or government and get on with it.  i'm not sure what you expect people here to do about it.

Fish Gone Bad's picture

Not to be outdone by Soros, GS is going to pants Europe!

tonyw's picture

If you are genuinely concerned just post the general details so it can be reviewed, otherwise STFU.



Temporalist's picture

Please don't say his name to many times he may reappear like Beetlejuice.

Spastica Rex's picture

I dare hime to come back:

Wanger Wanger Wanger



ElCapitanNemo's picture

“Gold Is Money, and Nothing Else.“
- JP Morgan, testifying under oath to Congress before the Pujo Commission, 1913

"Banking was conceived in iniquity and born in sin. The Bankers own the earth. Take it away from them, but leave them the power to create deposits, and with the flick of the pen they will create enough deposits to buy it back again. However, take away that power, and all the great fortunes like mine will disappear — as they ought to in order to make this a happier and better world to live in. But, if you wish to remain the slaves of Bankers and pay the cost of your own slavery, then let them continue to create deposits.”

 Sir Josiah Stamp (1880-1941), one time governor of the Bank of England, in his Commencement Address at the University of Texas in 1927. Reportedly he was the second wealthiest individual in Britain.

Mobilis In Mobili -Nemo

mephisto's picture

+1, appreciate the quotes.

Cleanclog's picture

To fix the problem of too much debt that looks to be on an inadequately serviceable trajectory . . . throw more debt at it.  Brilliant.  Kick the can until when?

These countries need to restructure (yes, default).  It is not the end of the world and the sooner the better.  They've all done it before.  Yes, I know it puts the future of the EU in question.  But putting it off for 3 years actually increases the likelihood.

Or is it really all about saving the banks, yet again?

Sancho Ponzi's picture

The EU was officially created to facilitate the free flow of people and commerce between members, and unofficially created to allow a small ruling elite to control a nice chunk of the industrialized world. You didn't think TPTB would relinquish some of their power so Greece and a few other misfits could break from the EU in order to default and/or devalue their own sovereign currencies, did you?

They've got carbon credits to skim, cash transactions to outlaw, direct taxation transfer payments to implement, taxpayers to fleece, and pensions and precious metals to confiscate. So many ways to screw the middle class, so little time. 


Cognitive Dissonance's picture

I was in my bedroom tying my tie when Mr. Rickards uttered those wonderful words. I was transfixed, waiting for a giant hook to come from stage right and yank him off the air. Even "Morning Joe" didn't seem to really understand what Rickards was saying.

When it was over and I looked in the bedroom mirror to check my appearance before leaving, I saw that I had tied a triple Windsor knot and the end of the tie was only 4 inches from the knot. Whoops! My first belly laugh of the day.

Steaming_Wookie_Doo's picture

At least you didn't give yourself an "Alcatraz Ascot" while listening to this

naiverealist's picture

Mr. Rickerts, excellent comment from an esteemed person.  Honesty and Gravitas?

Hondo's picture

Goldman would still have to find the sucker to take the other side of the bet.........it could be the ECB itself........

Cheeky Bastard's picture

The earlier article basically said it all; 100% profitable trading days. 

Listen, and understand!  GS cohorts are out there! They can't be bargained with. They can't be reasoned with. They do not feel pity, or remorse, or fear. And they, the Cohorts of Lord Blankfein absolutely will not stop, ever, until you are dead.

the grateful unemployed's picture

Remember its not in the interest of the parasite to kill the host organism. Goldman is the rentier class, but they pull the levers for Fed/Treasury, such a small thing really, demanding  a fair kickback out of Greece, where the ratings agencies put the bid under those austerity bonds. In turn the EU picks up the bill. We can bleed everybody dry, is this a great country or what?

Steaming_Wookie_Doo's picture

I think the parasite has figured out this beast is on its last legs. Better to gorge now, lay 200,000 eggs and find another victim passing by shortly.

the grateful unemployed's picture

oh and i love Zoiberg. this is like a guy laying in the street bleeding and the vampires licking the blood off the pavement.

THE DORK OF CORK's picture

Enough - if Europe believes its own Bullshit there is only one option.

Put up the capital walls and keep the barbarians out.

A trading bloc without external boundaries is not a trading bloc but a collection of vassal states.

The Anglo Saxon economies can create money without savings and force their only western rival to respect the rules that they created and force it to print money.

Will it allow New York and London to drag the west into the mire once again ?



Temporalist's picture

Jim Rickards should have his own financial channel.


Maybe it can be channel 5000...for $5000 Au.

Gold...Bitches's picture

maybe it can be real interviews with actually important insightful questions instead of just the usual CNBC starfucking.

Cheeky Bastard's picture

Mark Heines: We are up 400 points, whats wrong with you people, shut up!!

Cheeky Bastard [in response to the above statement]: I will eat your heart and sell your women to slavery, slaughter all your horses and poison your 5th avenue lands.

Menelaus's picture

"Conan, what is best in life?"

Conan - "To crush your enemies, have them driven before you as slaves, and to hear the lamentations of the women."

Fish Gone Bad's picture

Pete (from Big Island Snake House): It is not so important that I win, but that I am the only winner, and that everyone else is a loser.

BlackBeard's picture

 Did Joe just squeal like a bitch?

Sespian's picture

He wanted them to "shut up!" because they were distracting him while he clicked his red heels together chanting "there's no place like home, there's no place like home!"

Traianus Augustus's picture

Does GS -

1. plunder the individual countries one at a time

2. plunder all EU countries together via USD/EUR

3. plunder both while declaring "The devil made me do it"

King_of_simpletons's picture

"The devil made me do it"


Doing god's work.....

CookieMonster's picture

Yes, and now we know the mechanizm of control towards that elitist state of nirvana, "one-world governance". It is all PLANNED.....

Raymond K Hassel's picture

Its a very good question - who is the remaining counterparty necessary for these synthetic bets to come into existance? 

the grateful unemployed's picture

A holds B's dollars and A wants his own dollars back, because B has nothing for him to buy. He goes to B and says, I want you to exchange these B dollars for my own A dollars, you go out in the market and get me enough A dollars to complete the transaction. (B has to repatriot his dollars back into A dollars). This is fundamentally different than A redeeming Treasury Bonds which B sold him, because B would simply pay A in B dollars, which just kicks the can down the road.

Governments are willing to do this, ad infinitum, but it is private investors who hold the real dollars, and once some group, with enough capital starts the ball rolling it can't be stopped. Then of course you set up some hedges, which leverage the position you are pressing.


Raymond K Hassel's picture

But if A retains a GS to 'help' him get A dollars back, A is enabling the WMD that is focused on destroying that with which he will be left with at the end of the day.  Its one thing a few years back, when the mechanism was not clearly visible, but its the very definition of insanity to do it again now - maybe I just answered my own question. 

noguess's picture

Dear Raymond and others,

How naive are you?

They are there own counterparty!!

It is all orchestrated.

They have  enough funds of their own, both onshore and offshore, and manage incredible offshore funds. Left hand doing business with the right hand, and we the people are so naive and dumb we think it is a real market.

It's all about power and money.

doggings's picture

Does GS -

1. plunder the individual countries one at a time

2. plunder all EU countries together via USD/EUR

3. plunder both while declaring "The devil made me do it"

3. is definitely wrong, "it is god's work" remember? .edit, bugger, beaten to it, ...must type faster
John McCloy's picture

Keep in mind the oil volcano is currently acting like a reverse printing press. Think of it is a currency cookie monster. Unemployment is going higher.

THE DORK OF CORK's picture

Yes she has a fantastic body of work.......

bugs_'s picture

Could Goldman be right this time?

glenlloyd's picture

Rickards presents his view rationally and coherently, and that's part of the reason why he's respected. He has command of his faculties and it's so much more difficult to undermine the message.