Jim Rickards: You Are Witnessing The Collapse Of The U.S. Dollar
The Silver Bug: The United States is in full blown damage control. President Obama has been left with a mess. The dire situation that is unfolding in Iraq is affecting stocks, precious metals and the confidence of markets around the world.
The void that the United States left after its invasion and then occupation of Iraq has created an opportunity for extreme terrorist groups such as ISIS to move in and attempt to displace a severely crippled puppet government.
Unfortunately for the US government, they are in between a rock and a hard place. President Obama cannot win either way he spins this. If boots are put back on the ground in Iraq, he goes against the wishes of those who elected him and the mass majority of the American population. If he sits back and does nothing, then America loses control over vital oil assets in the Middle East.
If this situation is not resolved quickly, then the already fragile “economic recovery” that politicians like to talk about so much is in deep trouble. Oil prices could move up $20, $50 or even $100 dollars, crippling economies around the world.
Jim Rickards, a well respected name in the precious metals community, believes that this scenario is very likely.
In a recent interview with CNBC he discusses how this new war in the Middle East could cause an explosion higher in oil price and a collapse of the dollar.
Related Tickers: SPDR Gold Trust (ETF) (NYSEARCA:GLD), iShares Silver Trust (ETF) (NYSEARCA:SLV).