Episode description

Oh my gosh. I always feel like my IQ goes up when I talk to Jim Rickards. He has so much knowledge about so many things, but particularly, he's been there, done that when it comes to all things in the economy. Some of his stories about what he's personally seen and done are tied to some of the most famous events in the economy over the past 50 years.

Anyway, he wrote a new book, Money GPT, which is about the financial aspects of AI and how it could affect the economy. But we started off with the basics. I just wanted to ask him: What do you think is going to happen in this economy? And we go deep. So, we divided this into two parts.

Part one covers everything you need to know about the current state of the U.S. economy. This was a real education for me, and I read a lot about this stuff. So, I’m excited to share it with you. The second part, which will come out later, is all about AI and its effects on the economy.

Here's my friend Jim Rickards. I'm sure you're going to enjoy this as much as I did. And, as always, if you have any comments or questions, let me know. And, please, subscribe to the podcast if you haven't already.

In this episode, James Altucher sits down with renowned economist and author Jim Rickards to break down the complexities of today’s economy. With decades of experience and a front-row seat to some of history’s most pivotal financial events, Jim delivers sharp insights into the forces driving economic cycles. This discussion dives into historical parallels, the impact of policy decisions, and what lies ahead for the U.S. economy under potential future administrations.

Jim also shares his take on how recession cycles play out, the legacy of interest rate hikes, and why both borrower and lender psychology matter more than Federal Reserve actions. Packed with valuable lessons, this episode offers a rare look at economic trends from a perspective few can match.

1. The historical parallels between Reagan-era recessions and today’s economic landscape.
2. Why low interest rates aren’t necessarily a stimulus and the real drivers of economic growth.
3. How borrower and lender behavior impact recessions more than Federal Reserve policies.
4. The role of government and corporate partnerships in shaping modern economies.
5. What could catalyze a shift from stagnation to growth in today’s economic climate.

• [00:01:30] Introduction to Jim Rickards and his new book, Money GPT
• [00:02:17] Overview of the U.S. economy’s current state
• [00:03:16] Historical parallels: Lessons from Reagan-era recessions
• [00:07:02] Interest rates: Stimulus or symptom of deeper issues?
• [00:10:14] Depression vs. recession: How the definitions shape our understanding
• [00:18:33] The psychology of lending and borrowing in recessions
• [00:27:20] Modern banking, bail-ins, and the Silicon Valley Bank collapse
• [00:34:21] The Fed’s limits: What really moves the economy
• [00:45:21] Government-corporate partnerships: Are we living in a new era of fascism?
• [00:58:22] Can Trump’s policies truly drain the swamp and drive economic growth?

• Jim Rickards’ book: Money GPT
• Jim Rickards’ previous works: The Death of Money, Aftermath