Aftermath

May 15, 2019
Economic analyst Rickards (The Road to Ruin: The Global Elites' Secret Plan for the Next Financial Crisis, 2016, etc.) prophesies scary times to come as the economic crisis of 2007-2008 grinds on. "This coming crisis is as predictable as spring rain." So writes the author of the enervating effects of economic policies that remain in place despite the damage they have wrought. For instance, he argues, the net effect of low interest rates as a means to stir up action in the economy was "the housing bubble and subprime mortgage crisis that exploded in 2007." The next two years saw the near destruction of the international monetary system and the need to bail banks out worldwide--and according to Rickards, things haven't gotten much better. The weak links in the chain are many, including likely debt crises in emerging markets such as Turkey and Indonesia, to say nothing of money market funds that seem to exist in order to finance the banks, not reward investors, and use strategies made all the more vulnerable by reliance on algorithms and "robo-advisers." The author advises numerous ways to harden one's finances against what he sees as the inevitable apocalypse lurking in plain view: He extends the usual advice to diversify, for example, by urging that readers invest in "cash, gold, and alternatives" and otherwise allocate investments in a "barbell portfolio" that consists of equal parts inflation protection (in gold and other hard assets) and deflation protection (in Treasury notes and the like), all balanced by cash. His views are a touch alarmist, but those who remember the events of a dozen years ago will likely form a persuadable audience. In any event, his advice seems largely sound and well defended, especially his exhortations to be wary of passive investments and asset-draining managers. For those inclined to hide their savings in the mattress, this book may provide all the justification needed.

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