Stimulus vs. austerity

Watch the full 42-minute video at http://www.goldmoney.com/rickards-turk-interview. James G. Rickards (http://www.tangentcapital.com) and James Turk, Director of the GoldMoney Foundation, talk about US politics and the fight between austerity and stimulus, with Krugman, Summers and President Obama defending a keynesian doubling down. They comment on the recent debt-ceiling debate and how the compromise reached, despite all the headlines, does not actually include any real cuts, including only cuts in proposed increases. Rickards mentions his four possible scenarios for the future of the international monetary system: SDR, gold, multiple reserve currencies or chaos. They talk about US unemployment benefit expiration and how America’s debt-to-GDP ratio now exceeds 100%, and could perhaps go on to reach Greek levels of indebtedness in the future.
James G. Rickards forthcoming book is: Currency Wars. The making of the next global crisis.

This interview was recorded on August 4 2011 in London.