Jim Rogers: The Dollar is Doomed. The Federal Reserve Will Dissapear. Oil To Hit $200

DriftingByTheStorm

Jim Rogers, famed international investor, and former partner of George Soros, did an interview for Bloomberg just the other day:

Here is the video

Take away points:

*The Federal Reserve Bank is the WORST centeral bank in the WORLD.

*It will dissapear in the next decade or two.

*Oil will absolutely hit $200 a barrel in short order.

*The dollar is a "terribly flawed currency"

*He "hopes not to own any dollars by this time next year."

*The dollar "will go the way of the sterling"

*China is the way of the future.

*He is teaching his two little girls to be fluent in Mandarin Chinese

*He encourages you to be fluent in it as well.

Here is an interview with Jim from August. ... if you are in the mood for even more dollar bashing "fun".

Here is tomorrows headlines from Bloomberg:
Asia DayAhead: Fannie, Freddie Plan a `Disaster' to Jim Rogers

Oh.
I know.
I know.
I'm a "fearmonger".
:rolleyes:

my2hands

DriftingByTheStorm wrote:

Oh.
I know.
I know.
I'm a "fearmonger".
:rolleyes:

yup

my2hands

we are all doomed

Abookamongstthemany

DriftingByTheStorm wrote:

Oh.
I know.
I know.
I'm a "fearmonger".
:rolleyes:

You forgot to mention John McCain. Only then would it be acceptable fearmongering.

FiveB247x

People look at this issue in the wrong way. In the past, if the US had economic down-turns and problems, the rest of the world markets would react negatively. The fact that our economy is going through tough times and the rest of the world is keeping everything somewhat stable is a good thing! It gives the world as a whole, balance and stability.

But yes, if your Joe American and only expect us to be the best at everything (which isn't realistic and certainly not true), this is a bad sign.

LikeAnOpeningBandForTheSun

well its good to know the fed reserve wont be around.

ajedigecko

FiveB247x wrote:

People look at this issue in the wrong way. In the past, if the US had economic down-turns and problems, the rest of the world markets would react negatively. The fact that our economy is going through tough times and the rest of the world is keeping everything somewhat stable is a good thing! It gives the world as a whole, balance and stability.

But yes, if your Joe American and only expect us to be the best at everything (which isn't realistic and certainly not true), this is a bad sign.

i agree.....i am ready to see another country/nation step up and hold the number one spot.

FiveB247x

What does this have to do with "holding the number one spot"? Fact is our nation has bankrolled it's future in debt and sold out most of it to foreign nations. We have wars on funds we don't have. We bailout companies and industries when they simply lack good management and enterprise, yet block foreign competition. If you have a clear look at most of the things that make up "free market capitalism", we have moved away from such policies in order to try and keep our failing system alive. Whether it's tarriffs on foreign goods or not pro-actively trying to keep factories and jobs (which americans actually would want and need) here at home, compared to actually having the government give corporate sponsorship and funding to help them setup shop in lessor controlled nations for larger profit margins. The rest of the world has caught economically because the US has enabled the atmosphere for it to occur and the richer, powerful nations who can step-up, have gone in line and made themselves more stable without our help. One of the largest impacts and characteristics of our US Empire (from rise to fall) was that of economic interests trumping all things, even in political undesireable places. Look around the rest of the world and you see others do the same as a result of our initiatives. But looking at our opponents doing it now, we don't exactly hold high revere for it, do we? Says alot.

ajedigecko wrote:

i agree.....i am ready to see another country/nation step up and hold the number one spot.

Heineken Helen

FiveB247x wrote:

People look at this issue in the wrong way. In the past, if the US had economic down-turns and problems, the rest of the world markets would react negatively. The fact that our economy is going through tough times and the rest of the world is keeping everything somewhat stable is a good thing! It gives the world as a whole, balance and stability.

But yes, if your Joe American and only expect us to be the best at everything (which isn't realistic and certainly not true), this is a bad sign.

the rest of the world is not somewhat stable at the moment Ireland is in a recession according to the media... apparently Britain is too! Things are shit all over Europe right now... Spain was hit the worst I believe... my German housemate tells me things are bad in Germany at the moment.

farfromglorified

The sky sure does fall slowly.....

my2hands

farfromglorified wrote:

The sky sure does fall slowly.....

i check in every morning for the daily drifting "how far the sky is falling today" report

FiveB247x

Yes many places are having financial issues, but currently our situation is far worse. In the past, if the US had serious economic down-turns (short-term) and long-term issues (like massive debt problems), the rest of world would be far worse off than it currently is. The main fact that we see the US dollar falling and many other currencies stable or rising is a clear indication of this fact. It may not be a definitive shift of economic power and status, but it is a sign that many of the other economic powers in the world have become more self-reliant and less dependent on our economic standing for their succcess.

Heineken Helen wrote:

the rest of the world is not somewhat stable at the moment Ireland is in a recession according to the media... apparently Britain is too! Things are shit all over Europe right now... Spain was hit the worst I believe... my German housemate tells me things are bad in Germany at the moment.

Heineken Helen

FiveB247x wrote:

Yes many places are having financial issues, but currently our situation is far worse. In the past, if the US had serious economic down-turns (short-term) and long-term issues (like massive debt problems), the rest of world would be far worse off than it currently is. The main fact that we see the US dollar falling and many other currencies stable or rising is a clear indication of this fact. It may not be a definitive shift of economic power and status, but it is a sign that many of the other economic powers in the world have become more self-reliant and less dependent on our economic standing for their succcess.

what do you think is going on here? Many people are poised to lose their houses within the next year or two.. and this WILL happen... at the moment they can use their mortgage holiday and their savings to keep them afloat but that'll only last a few months. This coming Friday has already been termed Black Friday... cos it's when construction companies tend to get rid of staff... and there are BIG rumours for this year. Construction was the biggest industry in Ireland and it's been hit BADLY... and there IS a knock on effect into everything else... even insurance companies, stockbroking companies and finance companies are lletting people go by the hundred

We are completely dependant on other countries.

FiveB247x

Would you say it is same climate and issues in the likes of the other G-8 nations? Don't mean to sound rude or something of the likes about Ireland, but I was refering to major world economies (China, Russia, etc).

Heineken Helen wrote:

what do you think is going on here? Many people are poised to lose their houses within the next year or two.. and this WILL happen... at the moment they can use their mortgage holiday and their savings to keep them afloat but that'll only last a few months. This coming Friday has already been termed Black Friday... cos it's when construction companies tend to get rid of staff... and there are BIG rumours for this year. Construction was the biggest industry in Ireland and it's been hit BADLY... and there IS a knock on effect into everything else... even insurance companies, stockbroking companies and finance companies are lletting people go by the hundred

We are completely dependant on other countries.

Heineken Helen

FiveB247x wrote:

Would you say it is same climate and issues in the likes of the other G-8 nations? Don't mean to sound rude or something of the likes about Ireland, but I was refering to major world economies (China, Russia, etc).

Britain, Germany, France, Italy... absolutely! Europe is not economically stable at the moment.

FiveB247x

I'm not saying their thriving or something... my point is that in the past, their economies would have been far worse off then they currently are. So instead of it being a large scale depression, it's a temporary recession in which they'll turn it around in the near future.

Heineken Helen wrote:

Britain, Germany, France, Italy... absolutely! Europe is not economically stable at the moment.

Heineken Helen

FiveB247x wrote:

I'm not saying their thriving or something... my point is that in the past, their economies would have been far worse off then they currently are. So instead of it being a large scale depression, it's a temporary recession in which they'll turn it around in the near future.

That's what I believe too.... but the 'experts' seem to be predicting otherwise... apparently Britain is in a bad way to deal with it.

lastexit78

my2hands wrote:

i check in every morning for the daily drifting "how far the sky is falling today" report

I'm a daily subscriber as well. Just glad he's in the minority. If the majority of this country believed the stuff he does the economy would implode within hours.

DriftingByTheStorm

lastexit78 wrote:

I'm a daily subscriber as well. Just glad he's in the minority. If the majority of this country believed the stuff he does the economy would implode within hours.

Markets down another 150 points DJIA right now. 17 points S&P.

BERNANKE IS SPEAKING ON TV AGAIN.

Put it this way, Bush is on the right side of the screen speaking.
Bernanke is on the left.
Different conferences.
BUSH IS MUTED.
Bernanke is being aired.

You are getting your implosion right before your eyes.

Frog boiling in a pot.

:cool:

my2hands

DriftingByTheStorm wrote:

Markets down another 150 points DJIA right now. 17 points S&P.

BERNANKE IS SPEAKING ON TV AGAIN.

Put it this way, Bush is on the right side of the screen speaking.
Bernanke is on the left.
Different conferences.
BUSH IS MUTED.
Bernanke is being aired.

You are getting your implosion right before your eyes.

Frog boiling in a pot.

:cool:

OMG this is the first economic downturn in world history!!!!!!!!! :rolleyes:


i do like drifting though, he is passionate and keeps up on shit, plus he can be pretty damn funny!

DriftingByTheStorm

my2hands wrote:

OMG this is the first economic downturn in world history!!!!!!!!! :rolleyes:

You should consider yourself lucky you don't really grasp the full scope of this crisis.

It makes it a lot easier to go to bed at night just dreaming this as nothing more than your "average" "down turn".

Unfortunately this is ANYthing but average, ordinary, or typical.

my2hands

DriftingByTheStorm wrote:

You should consider yourself lucky you don't really grasp the full scope of this crisis.

It makes it a lot easier to go to bed at night just dreaming this as nothing more than your "average" "down turn".

Unfortunately this is ANYthing but average, ordinary, or typical.

here is how i look at it, big picture... a total collapse of the american economy would still mean we live better then 90% of the world

spiral out

Heineken Helen wrote:

apparently Britain is in a bad way to deal with it.

Yea a very bad way indeed.

How is Ireland doing though? I keep hearing about a falling housing market much like the rest of Europe, but is it as bad as ours?

DriftingByTheStorm

I can't watch this at work, but i am sure its gold:

Jim Rogers on Proposed Bail Out of Fannie & Freddie

BTW, Bob Chapman was on Alex Jones today talking about the current crisis at these two GSEs (Fannie & Freddie) ...

he said the root concern here ... what they aren't really telling people ... is that the reason the US Government is freaking out over this is because of the BONDS that are backing these two corporations.

There are over ONE TRILLION DOLLARS in bonds\paper backing Fannie and Freddie, and if they fail (bankrupt), the BOND HOLDERS WILL COME ASKING FOR THEIR MONEY. Money that Uncle Sam DOES NOT HAVE, and CAN NOT PRINT!

Here is the REAL big problem (per Chapman):
CHINA IS THE HOLDER OF ALMOST HALF OF THAT!

You want to talk about some political repurcusions.

Goddamn!

:(

dmitry

DriftingByTheStorm wrote:

I can't watch this at work, but i am sure its gold:

Jim Rogers on Proposed Bail Out of Fannie & Freddie



:(

That guy is hilarious. "You should get a new job"

McCain the socialist is for the bailout. Obama is quiet on the matter, but I think he is against it which means he might have a brain.

DriftingByTheStorm

dmitry wrote:

That guy is hilarious. "You should get a new job"

McCain the socialist is for the bailout. Obama is quiet on the matter, but I think he is against it which means he might have a brain.

He stole my damn band-aid\cancer analogy! Fucker!

Hehe.
Okay, Bertha Coombs is a shill,
but she is essentialy just reading someone else's script.
[Though i do fault them all for being a part of the deception\fraud. edit: CNBC's Gasparino, Liesman, and Santelli all get a pass, and sometimes cramer]

Tangentally,
This morning when Bernanke and Paulson were in the q&a section of the senate hearings, CNBC interrupted to "bring you this important update" no less than FOUR times when a tough question was being asked that disparaged the Fed or Treasury policy. I wish someone had a full video of that conference up. There was some fucking GOLD in there. Bernanke got his ass handed to him by a senator who stated he would do "everything in his power" to ensure that the Fed got no new regulatory powers!

HELL YEAH!
We're making progress!!!

And Jim Rogers needs to run as a fucking independent.

Seriously. :sigh:

America DESPERATELY needs someone who not only UNDERSTANDS markets, but understands how to be PROFITABLE in markets.

[and i totally agree with him about not buying oil at an all time high. $147 will probably be a bargain in a year, but a lot of bullshit hanky-panky manipulation by DEEPER forces than "speculators" can happen before then]

DriftingByTheStorm

Here is something to chew on.

INFLATION, THE DOLLAR, TREASURY SECURITIES, and DOOMSDAY.

Mr. Fed - #7 THE ENDGAME: When the Fed RAISES Interest Rates

This guy, despite looking dorky, is talking sense.

What he's discussing is the more probable alternative to hyperinflation -- high interest rate driven massive depression!

Here is an article which dances around the same premise as the above video and more, by Bob Chapman: The Key To All Market Analysis: The Bond Market

The summary point (made by both, and really the key point of the Mr. Fed video) is that The Federal Reserve is a HUGE player in the Treasury securities market. That's what they DO. They TRADE dollars to the Government in exchange for treasuries of one form or another.

IF the market at large gets scared about inflation (and they have PLENTY of reasons to be: look at the bottom graph, and here too) the big boys will be forced to sell their treasury securities. Why? Because treasuries are offering rates around 2-3% and inflation would outpace that significantly. They would be LOSING money on those assets. They would rather go buy some commodity with a RISING value that matches inflation, or at the very least, wait for the treasury market to get flooded, and buy the same treasuries back cheaper, or buy NEW treasuries with higher fixed rates (the government\treasury is forced to raise its interest rate on notes when demand is low! remember that is how the government is financed, they MUST sell treasuries!)

Well if EVERYONE is selling treasuries,
what do you think the Fed is going to do?

Just sit on them?
Fuck no!
SELL SELL SELL!

And what will happen to interest rates (remember the Government MUST get someone to buy NEW treasury bills, even if the secondary market is still flooded with current ones)?

Rates will SOAR.

Well MORTGAGE RATES are tied to 10 Year Treasury Notes, and THEY will SOAR.

The housing market will CRASH.

The average person will have their savings wiped out in many cases by this.

Things could get horribly out of control.

:(

Heineken Helen

spiral out wrote:

Yea a very bad way indeed.

How is Ireland doing though? I keep hearing about a falling housing market much like the rest of Europe, but is it as bad as ours?

It's hard to tell... and it depends which 'expert' you listen to... but apparently we should be ok after a year or so... if we can last that long. I feel bad for everyone who's gonna lose their houses... but a lot of people were being completely unrealistic. Like somebody on 30,000 a year buying a 350,000 1 bed apartment in the city centre :eek: as a friend of mine did. That's just asking for trouble.

The construction industry has been hit BAD! Houses and apartments all over the country are lying idle now. It's good news for somebody like me who has never bought... as long as I can manage to keep a job . I'm ok... even if I lose the job, my debts at the mo are minimal and almost wiped out so I'm in a better position than most.