Jim Rickards on China: ‘They Don’t Know Anything About Capital Markets’

China allowed the world to catch a breath on Friday. Chinese stocks rose 2 percent and the central bank fixed the currency a tad higher. Global stocks are more or less unchanged.
Jim Rickards on China: ‘They Don’t Know Anything About Capital Markets’
James Rickards, author of the national bestseller "Currency Wars."
Valentin Schmid
Updated:

China allowed the world to catch a breath on Friday, Jan. 8. Chinese stocks rose 2 percent and the central bank fixed the currency a tad higher. Global stocks are more or less unchanged.

After a week of complete market chaos, this is a welcome break, but it won’t change anything in the long term says James Rickards, author of “Currency Wars” and “The Death of Money.”

“The Chinese are communists and they don’t know anything about capital markets. Putting communists in charge of capital markets is like giving a loaded gun to a 3-year-old,” he told Canadian broadcaster CBC.

He says their biggest mistake was to shock the world by devaluing their currency last August. “You never shock the system; you always let people know what’s coming,” he said. At that time, the move came as a complete surprise and shook the world’s belief in Chinese central planning.

(Macquarie)
Macquarie
Valentin Schmid
Valentin Schmid
Author
Valentin Schmid is a former business editor for the Epoch Times. His areas of expertise include global macroeconomic trends and financial markets, China, and Bitcoin. Before joining the paper in 2012, he worked as a portfolio manager for BNP Paribas in Amsterdam, London, Paris, and Hong Kong.
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