Currency Wars: The Making of the Next Global Crisis (Google eBook)

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Penguin, Nov 10, 2011 - Business & Economics - 320 pages
123 Reviews
In 1971, President Nixon imposed national price controls and took the United States off the gold standard, an extreme measure intended to end an ongoing currency war that had destroyed faith in the U.S. dollar. Today we are engaged in a new currency war, and this time the consequences will be far worse than those that confronted Nixon.

Currency wars are one of the most destructive and feared outcomes in international economics. At best, they offer the sorry spectacle of countries' stealing growth from their trading partners. At worst, they degenerate into sequential bouts of inflation, recession, retaliation, and sometimes actual violence. Left unchecked, the next currency war could lead to a crisis worse than the panic of 2008.

Currency wars have happened before-twice in the last century alone-and they always end badly. Time and again, paper currencies have collapsed, assets have been frozen, gold has been confiscated, and capital controls have been imposed. And the next crash is overdue. Recent headlines about the debasement of the dollar, bailouts in Greece and Ireland, and Chinese currency manipulation are all indicators of the growing conflict.

As James Rickards argues in Currency Wars, this is more than just a concern for economists and investors. The United States is facing serious threats to its national security, from clandestine gold purchases by China to the hidden agendas of sovereign wealth funds. Greater than any single threat is the very real danger of the collapse of the dollar itself.

Baffling to many observers is the rank failure of economists to foresee or prevent the economic catastrophes of recent years. Not only have their theories failed to prevent calamity, they are making the currency wars worse. The U. S. Federal Reserve has engaged in the greatest gamble in the history of finance, a sustained effort to stimulate the economy by printing money on a trillion-dollar scale. Its solutions present hidden new dangers while resolving none of the current dilemmas.

While the outcome of the new currency war is not yet certain, some version of the worst-case scenario is almost inevitable if U.S. and world economic leaders fail to learn from the mistakes of their predecessors. Rickards untangles the web of failed paradigms, wishful thinking, and arrogance driving current public policy and points the way toward a more informed and effective course of action.


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Simple, easy to read, and even occasionally funny. - Goodreads
Well-researched book. - Goodreads
These portions are valuable and educational. - Goodreads
It takes a very good writer to make that interesting. - Goodreads
A definite page turner. - Goodreads

Review: Currency Wars: The Making of the Next Global Crisis

User Review  - David - Goodreads

A frightening book about how financial debasement could lead to collapse. Read full review

Review: Currency Wars: The Making of the Next Global Crisis

User Review  - Ankit - Goodreads

The book makes a horrendous start, with excruciatingly lengthy details of an inconsequential game, which made me wonder the wit of the author to have put in in the first place. However, it is not a ... Read full review


Day One
Day Two
The Classical Gold Standard1870 to 1914
The Creation of the Federal Reserve1907 to 1913
World War I and the Treaty of Versailles1914 to 1919
The End of Bretton Woods
The Return of King Dollar
Financial Economics
Washington and Wall Streetthe Twin Towers of Deception
Behavioral Economics and Complexity
Complexity Theory
Complexity Energy and Money
Multiple Reserve Currencies
Special Drawing Rights
Return to the Gold Standard

The Pacific Theater
The Atlantic Theater
The Eurasian Theater
Global Skirmishes
State Capital
The Federal Reserve
Chapter 1
Chapter 4
Chapter 5
Chapter 6
Chapter 7
Chapter 8
Chapter 10
Chapter 11

Common terms and phrases

About the author (2011)

James Rickards is a counselor, investment banker, and risk manager with over thirty years' experience in capital markets. He advises the Department of Defense, the U.S. intelligence community, and major hedge funds on global finance, and served as a facilitator of the first ever financial war games conducted by the Pentagon. A frequent guest on CNBC, CNN, Fox, C-SPAN, Bloomberg TV, and NPR, Rickards also lectures at Northwestern University and at the School of Advanced International Studies.


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