Ealier today Jim Rickards of Omnis, formerly LTCM's GC, was on CNBC and was subjected to some "probing" questions by Joe Kernen in which the anchor asks Rickards if he is a "conspiracy theorist" for his recent insights into the potential investigation of JP Morgan's market rigging behavior by the DOJ. Rickards replies that he isn't, and follows it up with some gold price target observations based on "8th grade math": the former LTCM man sees gold going up by at least 10 times, and hitting $5,000 rather easily. We wonder if to CNBC there is any uglier word than "conspiracy theory" even when the "theory" is backed 100% by facts.
Full exchange between Kernen and Rickards:
Joe Kernen, “Jim, some of the craziest viewers I know send me stuff that I think is from you. I’m just wondering if it’s the same Jim Rickards? Are you a conspiracy theorist on silver manipulation, that it’s being controlled by JP Morgan?”
Jim Rickards “I’m not a conspiracy theorist. I gave an interview I was asked to respond specifically, I’m a lawyer also and I was shown correspondance from the Justice Department, Anti-Trust Division of the Justice Department to someone who wrote in enquiring...my comment was that it was an unusual communication because the Justice Department specifically named JP Morgan. Instead of saying thanks for your letter, they said we’re looking into the JP Morgan alleged actions and they went on to say we are not going to refer to the CFTC, we’re going to look into it ourselves. I thought both of those things were unusual.”
Joe Kernen“So you’re not necessarily saying that gold and silver would be 1,000 times higher if free market forces...?”
Rickards “No I am saying 10 times, I am saying gold will get to $5,000. It’s 8th grade math. Just look at the amount of gold and the amount of paper money, do the division, that’s where gold has to get to.”
For those who wish to hear Jim Rickards recent must-hear interview with Eric King of King World News, in which Jim shares his insight into the DOJ investigation of JPM, here is the link.
Full clip here.