The Federal Reserve “really wants to trash the dollar,” according to Jim Rickards, author of acclaimed book Currency Wars: The Making of the Next Global Crisis.

In an interview with King World News, Rickards discussed his outlook for gold and the greenback in light of last week’s Fed meeting.  ”Contrary to what a lot of people think, the Fed wants gold to go higher,” he contended.  ”They just want it to go up in a controlled way, they don’t want to see a super-spike.  We may get a super-spike anyway just because of panic buying.”

At last week’s post-FOMC press conference, “Bernanke made it crystal clear they were going to go to some kind of quantitative easing,” Rickards added.  ”One of the reporters asked, ‘Do you worry that inflation may get out of control?’  The Chairman (Bernanke) responded, ‘We’re targeting 2% inflation.’  Of course, I don’t believe that.  My belief is they are targeting something like 4% or 5%.”

Other highlights from Rickards – who also serves as a Senior Managing Director at Tangent Capital - included:

There’s a lot of gold in India and they are willing to exchange that for oil.  You don’t need a banking system and you don’t need dollars.

China is ready to jump into the same game.  They have a banking system and it connects to the Russian banking system and Russia has a fair amount of gold.  So there could be a whole network among Central Asian countries, China, Russia, India, Iran and others, who say the time has come leave the dollar system completely.

(These countries will say) Let’s get our own payment system going.  Let’s use our own trade currencies.  Let’s use gold as a foundation.  It’s exactly what I talked about in my book, but having forecasted all of this I am surprised to see it happening so quickly.  This could be the beginning of the end of the dollar.”

The full Rickards interview is available at the web address below:

http://www.kingworldnews.com/kingworldnews/Broadcast/Broadcast.html