Faith and works are results of salvation, not conditions or means for it. James is talking of a person or people who are ALREADY saved or claiming to have saving faith without that faith producing any works. True saving faith produces good works (but remember, you're ALREADY saved by that point). James says we aren't saved by faith alone and he's right because we are saved by God's grace alone. His writings in chapter two go in complete harmony with the plethora of "saved by grace without works" passages found in the Bible.
"For by grace are ye saved through faith; and that not of yourselves: it is the gift of God: Not of works, lest any man should boast." Epheisians 2:8-9
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