Jim Rickards delivers a contrarian but well-reasoned take on the current economic narrative, challenging the mainstream view that the U.S. dollar is in retreat. Instead, he argues we’re in a global dollar shortage, with central banks and sovereign wealth funds – especially China – scrambling to sell long-dated Treasurys not because they’re bearish on the dollar, but because they urgently need cash. He warns that this scramble is creating stress across the financial system and could tip us into a liquidity crisis, not unlike what preceded the 2008 crash.

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Rickards points to a potentially bigger issue than tariffs or temporary volatility: a long-standing depression of U.S. growth. He draws a distinction between technical recessions and what he calls a “long depression,” where growth persistently underperforms potential. That’s been the case since 2007, in his view. Add to that the fragility in China, where debt-fueled overbuilding has led to what looks like deflation, and Rickards paints a picture of a global economy at risk of cascading shocks.

For investors trying to navigate it all, Rickards advocates real diversification – not just a basket of stocks across sectors, but exposure across asset classes. His shortlist includes cash (to stay liquid during panics), short-term Treasurys (to avoid volatility), and gold (as the “everything hedge”). He cautions that market participants are misreading both the data and the risks, and when things crack, it won’t be because of the headlines – it’ll be because the system was already unstable.

At WorthNet we strive to constantly challenge our views on the economy, markets, and investments. Jim’s opinions in this video are his own; they don’t necessarily reflect our firm’s opinions and certainly aren’t intended as personalized investment advice. Investments involve risk, including possible loss of principal. Be sure to seek out professional advice before implementing any investment plan.