Sold Out

About the Author

James Rickards is an acclaimed author, lawyer, economist, and investment banker with a deep understanding of global finance. With extensive experience in capital markets and national intelligence, he has become a leading voice in economic theory and policy. Rickards is known for his incisive analysis and ability to forecast economic trends. He has written several influential books, including "Currency Wars," "The Death of Money," and "The Road to Ruin." His expertise in complex financial systems and their intersection with geopolitical events makes his insights particularly valuable in understanding the current global economic climate.

Main Idea

In "Sold Out: How Broken Supply Chains, Surging Inflation, and Political Instability Will Sink the Global Economy," James Rickards explores the intricate and fragile nature of global supply chains and their critical role in the world economy. He delves into how recent events, such as the COVID-19 pandemic, trade wars, and political decisions, have exposed and exacerbated vulnerabilities within these supply chains. Rickards argues that the pursuit of efficiency has led to increased risks and that the world is now facing severe consequences, including inflation and economic instability. The book calls for a comprehensive reevaluation and restructuring of supply chains to ensure resilience and sustainability in the face of future challenges.

Table of Contents

1. Introduction: Contemplating the Supply Chain Crisis
2. The Global Supply Chain
3. The Role of Money
4. Inflation: Transitory or Persistent?
5. Disinflation and Deflation
6. Proposals for the Future

Introduction: Contemplating the Supply Chain Crisis

James Rickards begins his book by contextualizing the importance of supply chains, tracing their origins back to ancient times. He discusses a sunken ship from 1300 B.C. that carried a variety of cargo, illustrating that supply chains are not a modern invention but have always been essential for matching supply and demand across regions.

"It may not be as efficient or quick as the Amazon Prime many rely on today, but its purpose was the same, to match supply and demand." - James Rickards

Rickards emphasizes that while supply chains have evolved due to technological advancements, their fundamental role remains unchanged. However, he points out that modern supply chains' efficiency comes at the cost of increased risk, as evidenced by the cascading failures experienced during the COVID-19 pandemic. The modern supply chain system, though technologically advanced, is precariously balanced, and any disruption can have widespread repercussions. The intricate dance of logistics and transport that brings products to our doorstep can easily falter under the weight of unforeseen events, highlighting the fragility of our globalized world.

The Global Supply Chain

Rickards explains that the global supply chain is an intricate network of logistics, inputs, processes, transportation, packaging, distribution, marketing, and human capital. This system supports the supply and demand for virtually every product on the planet. The efficiency and complexity of these supply chains have increased significantly due to technological advancements such as just-in-time inventory, intermodal transportation, and GPS tracking. However, this efficiency also introduces significant risks. For instance, just-in-time delivery systems can lead to complete shutdowns if materials do not arrive as scheduled.