The Most Dangerous Man in the Soviet Union was Nikolai Kondratieff. And he wrote a book called “The Long Waves in Economic Life.”
The small book was only 23 pages long. You could read it in less than an hour.
But it contained an idea so revolutionary. So incendiary. So threatening to the Soviet Union that he was sentenced to ten years of hard labor in Siberia.
But the Soviet elites didn’t want to take any chances. On September 17, 1938, Nikolai Kondratieff was shot by a firing squad.
Why would the ruling elite of the socialist party do something like that?
Because Mr. Kondratieff predicted communism would fail and be replaced by capitalism.
It wasn’t an opinion, said Kondratieff, it was a certainty.
Because human economies move in waves, and even governments must obey the laws of economics.
Kondratieff Was Not Alone.
Recently world-class analyst Jim Rickards described in “The Road To Ruin” a program called “ice-9.”
Mr. Rickards has spent the last 43 years studying the combined impact of exactly these kinds of events.
“Ice-9” illustrated how one part of the financial system cannot be shut down in isolation. A contagion beginning in one part spreads to the entire system.
That’s because the minute one part shuts down, everybody runs for a different part in a quest to get their money back.
The process soon grows out of control.
Jim Rickards says,
“Imagine the money market funds are shut down. No one can get their money out of them.
Then everyone runs to the banks to get their money. But the banks are closed.
Then, everyone tries to sell their stocks, but the stock market’s shut down.
And so on. In other words, the minute one part of the system shuts, all of the demand for liquidity moves to another part.
But it dries up.
And that part of the system has to be shut that down, too.
Soon the entire system is shut down because it’s all so deeply interconnected.
That’s where the ice-9 metaphor comes in because it’s not just one water molecule turning to ice. All the water in the world turns to ice because it’s all connected.”
“Everyone thinks they have money; what they have are electrons…”
Listen to the interview here:
For 35 years Jim Rickards was both an attorney and risk analyst on Wall Street.
Rickards warned investors in two New York Times best-sellers… “Currency Wars” in 2011… “The Death of Money” in 2014… and his latest book, “The New Case For Gold.”