Posted on 04/21/2010 8:56:07 AM PDT by Comrade Brother Abu Bubba
The Great Recession that may have just ended will amount to nothing compared to the next one, says commodities expert Jim Rogers.
The huge fiscal and monetary stimulus is what will cause the crisis, he says. Rogers notes that the United States suffers a recession every four to six years on average.
VIDEO — Jim Rogers: Next Recession Will Be Much Worse
Federal Reserve Chairman Ben Bernanke is a big part of the problem, says Rogers, chairman of Rogers Holdings. “Mr. Bernanke can’t print much more money again. The world is going to run out of trees.”
That’s thanks to the mistakes made by Bernanke and his predecessor, Alan Greenspan.
“They’ve taken on gigantic amounts of debt that you and I are now responsible for. The central bank is making it worse,” Rogers said.
Bernanke’s low interest rate policy is a terrible mistake, Rogers says. “He’s essentially ruining the U.S. economy in the long run and ruining the U.S. dollar as well.”
The dollar’s safe for now, Rogers says, noting that he owns it himself. “But in the longer term, the dollar is a terribly flawed currency.”
Inflation already is here, he says.
That inflation is reflected in higher oil prices, and the surprise will be how high oil rises over the next decade, Rogers says.
“Known reserves are declining at a steady rate,” he points out. “Unless somebody finds a lot of oil very quickly, the price of oil is going to go much higher.”
There’s a very good chance that some governments will default on their debt in the next few years, he says.
“I do know that they’ve run up staggering debts in Washington, and that usually leads to problems down the road.”
(Excerpt) Read more at moneynews.com ...
I feel better already.
Many believe that we are facing deflation “short term” and then hyper inflation when all those reserves are lent out/money created when things bottom out. This seems the most plausible to me.
Also, those sectors of the economy most affected by the credit crisis (housing) are facing price deflation, while those that did not (food, energy) will be facing inflation. Hence you get squeezed, wages decline and your primary asset (house) declines in value yet staples prices (oil, food) increase. Toss in large increase in taxes and it will be a long time before we see any real recovery IMHO.
schu
But if we all move there, won't it capsize?
Singapore is a great place to visit; not to live.
No freedoms, cannot peacefully assemble, conscription, no guns, no independent press, cannot speak out about the Gov't, etc..
Jimmy Rogers is very, very good at macroeconomic investing. He is also a colorful character who once claimed his “five year old baby girl” was fluent in Mandarin Chinese.
It’s not garden-variety ARMs coming up for reset, it’s Option ARMs coming to the end of their 5 year Option period that will then turn into 25 year amortizing loans. No amount of holding the short end down will prevent the sticker shock and resulting default wave on those loans, especially considering that some 2/3 of them are undergoing negative amortization as the borrowers make the minimum payment that doesn’t cover interest on the (steadily increasing)principle balance.
English is the language of choice, so you’ll have absolutely no communication problems.
How do you say “Where can I find the local slum lord in Chinese? Because that is all I will be able to afford when the Obama train runs over me.
The common American never left the recession. And as far as oil running out, it will only be because Obama and Co. chokes off the supply.
Also, it floats with more than price, all the quakes and volcanics tend to shake it up from way down below to help refill wells.
Social visitors to Singapore are given visas of at least two-weeks' duration, although on average a tourist stays in Singapore for only a few days. Visa extensions are given liberally on application for those who wish to remain longer. If a visitor overstays his visa he is usually let off with a warning. It is those who overstay their visa by a few months who face the prospect of prosecution.
Caning is reserved as a form of punishment only for those who overstay their visas by more than 90 days.
Tourists, therefore, have no reason to worry about visiting Singapore. Last year we had a little over 6 million tourists. They are proof of the gracious treatment accorded in Singapore to all bona fide tourists.
CHIN HOCK SENG
First Secretary, Embassy of Singapore
"There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as a result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved."
~~Ludwig Von Mises
Only if you're a Democrat congressman for South Carolina. ;)
Also, no gum.
You realize you've just described Obama's second term. Why be miserable here, when I can be just as miserable there, only with a lower tax-rate and better food.
““I do know that they’ve run up staggering debts in Washington, and that usually leads to problems down the road.””
Don’t worry. Be happy.
A policy the US should adopt, immediately.
LOL! Priceless!
He speaks as if the present recession had ended. I, like millions of other unemployed people, have not noticed an end to it.
Once the Bush tax cuts expire and capital gains goes up the fed will get a windfall on all the sales just prior to the hike. Your equities will take a big hit but the fed will get a nice end of year bonus.
That make you feel better?
1st you must be reported to flag@whitehouse.gov for your fishy comments.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.