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Posted on 10/03/2009 8:03:06 AM PDT by kellynla
Tiger Management Chairman Julian Robertson says that if China and Japan stop buying our debt, inflation could hit 20 percent.
"It's almost Armageddon if the Japanese and Chinese don't buy,” Robertson told CNBC.
"I don't know where we could get the money. I think we've let ourselves get in a terrible situation."
Robertson’s 2008 picks, which included Visa, Baidu, Apple, and Google, handily beat the market. His worst performing choices went up 40 percent, the best more than doubled.
Robertson says his firm still owns many of last year’s picks, but says he’s “not as berserk over owning stocks as he is shorting bonds.”
“I think we’re going t have to pay the piper,” Robertson says, speaking of the current bull market.
“Interest rates are going to go up, and I would think … that would put the brakes on the economy (and) earnings would go down like crazy.”
“If we have 20 percent interest rates and 20 percent inflation and the market goes up five percent, that’s not a really good scenario.”
The Fed may keep its benchmark interest rate too low too long, causing the dollar to weaken, says Johns Hopkins professor Steve Hanke.
“They won’t do much as long as the headline inflation rate stays in that zone of zero to 2 percent,” Hanke told Bloomberg.
“It’s conceivable they’ll wait too long and they’ll probably keep as loose as they can before the elections.”
“2011 will be way too late.”
(Excerpt) Read more at moneynews.newsmax.com ...
No, no, no. This is all wrong. What a horrible story
20% would not be inflation.
That would be, technically, HYPER INFLATION, what many of us have been warning against for over a year now since the Federal Reserve and Federal government colluded to print and borrow our way out of recession.
Stock up on the essentials folks:
Food, drinking water, ammo, barter goods and money, gasoline, essential clothing, your medical supplies.
All these items are going to be priced for the elite in about a year.
Let’s face it, if China and Japan stop buying our debt, this nation will crumble worse than the great depression and probably split apart.
Coming to an economy near you. [Circa 3rd qtr 2010]
5.56mm
He left out the most important part...
If we also combine that with an over 60% tax rate, you will then see blood in the streets.
The only way to fix the mess Obama and this Democratic Congress have caused is to sell off the state of Alaska, as well as all of the offshore oil rights, the federal lands in Western States, and a lot of government office buildings and antiquities like the nationa museum of art, the Smithsonian treasures, etc. That would drain money out of the economy while giving the economy a boost, and at the same time raise money to pay down the federal debt.
Or you could bet on the Federal Reserve magic vacuum that sucks up all the 'excess' banknotes.
Then it will be time for "The Scouring of the Shire".
There, all fixed.
Cheers!
Since the Communists who put us here have no regard for property rights I see no problem seizing there property and throwing them into the streets....but then again we could just stretch their necks and be done with it.
How do you hoard gasoline or perishable goods?
Couldn't we try to sell off another state? Perhaps Massachusetts, New Jersey or Maryland? We could throw in the District of Columbia too. That's assuming we could find a buyer.
I agree that we should do that, but that won’t be enough. Might also require a Constitutional amendment.
Interesting idea though to impose a 100% tax on income of Congress critters for the last 20 years. They were going to do that to the bank fatcats, so they can hardly complain about this. The problem is that the only people who can impose that tax are the people who have to pay it, and they aren’t going to impose it on themselves.
“if China and Japan stop buying our debt, this nation will crumble worse than the great depression and probably split apart.”
don’t be silly!
China holds about a trillion dollars of American debt and Japan holds about another 600 billion.
“If” we had another Ronald Reagan, this whole mess including the huge debt and budget defiict could be resolved within four years...and even begin to pay down if not pay off the national debt within another four years.
Congress just needs to go on a diet and stop spending funds we don’t have!
The answer...JOBS, JOBS, JOBS!
Semper Fi,
Kelly
“Déjà vu all over again”
Yep...what we need is another Ronald Reagan!
Yeah, and add the impact of cap and trade on top of that.
I'm okay with that if it'll stop Obama/Pelosi's drive toward socialism. No short-term price is too high if it stops the long-term destruction of our country that Obama has dreamed of all his life. [I wonder if that goal is the real "Dream of his Father" that inspired him to have Ayers write a book for him.]
Yeah that’s it......a Republican landslide. That’ll fix everything.
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