Posted on 03/11/2013 4:09:06 PM PDT by Lorianne
Despite the current stock market rally, legendary investor Jim Rogers say the U.S economy is poised for a major crash and is warning investors to protect themselves immediately.
In a riveting interview on Fox Business, Rogers warned Americans not to trust any of the positive economic news coming from world governments.
"I don't trust the data from any government, including the U.S., Rogers said. "We know that governments lie to us. Everybody's printing money, but it cannot go on. This is all artificial."
Rogers, who for years has been an outspoken critic of the Feds policies of "Quantitative Easing" says all the money printing is creating false hope that we are in the middle of some kind of super bull market.
But in reality, he says, "we're living in a fool's paradise."
"The Bank of Japan says it's going to print unlimited amounts of money... Then Mr. Bernanke said I'll match that... I'll print that money too. The Europeans are catching on. You've got money printing going on everywhere and that has never been good for anybody," Rogers said.
Currently, Bernanke and company at the U.S. Fed is buying $1 trillion of Treasury and housing agency bonds each year. That's about $85 billion per month against a budget deficit that is about the same level.
The real risk right now is an all-out 1930s-style currency war that could devastate an entire class of investors who have put their faith in the current economic dogma of endless bailouts and money printing
"It cannot go on," Rogers warns.
(Excerpt) Read more at moneymorning.com ...
All of my available funds are being converted to the tangible assets of ammo, food, and tradeable comodities...(liquor, coffee, soap, etc.)
“Take oil, for example.
“Over the next decade or so, oil is going to go much higher, because known reserves of oil are declining at a very rapid rate,” Rogers said.”
— Jim Rogers last prediction in 2010...
Almost 3 years ago?
You sure about that?
Of course in a SHTF scenario, they may be one of the few means of transportation.
what a ding dong - the stock market is going up and it’s not time to sell. The bond market on the other hand will probably take a tumble when the Fed stops buying the bonds....someday
When inflation happens you want stocks - stocks generally mean assets and assets will rise in value.
Holding cash is dumb... cash is the one investment guaranteed to decrease in value over time. (ya hold enough to glide through downturns)
Missouri Municipal bonds are doing well. My small stock holding is up $1K today and was up all last week.
I’m pleased with what Pimco Total Return is doing with my retirement.
There are a few good places to put your money still available.
If Greece pulls or is kicked out of the Euro, I don’t think it will matter. It will likely be a positive for the EUR/USD pair. Dropping a weak partner, so to speak.
The real issue, in my mind, and something I’ve been saying for over four years, is German Nationalism.
I hosted a local radio show as the financial crisis was playing out and when I told my co-host that the Euro will fail and it will be because of German nationalism, everyone thought I was crazy.
No. Metals are NOT considered a “cash” position. Metals can be as volatile as stocks.
Gold, silver, ammo, food, water, medical supplies and barter items.
Yes they are as a hedge against economic turmoil. Under your description cash isn’t even a cash position if you take the possiblity of wild swings in currency valuations.
well said. But a key point ... and I’m sure you know this .. it also depends on your time horizon for needing the money and willingness to take risk. Slightly different answers for someone 25 vs 65. A 65 year old has to be more careful IMO but even then needs to have something in stocks or will likely run out of money. A 25 year old should asset allocate and forget about it.
Don’t forget heirloom vegitable seeds.
Hi OldNavyVet. Thank you for your service.
Two to three weeks ago there was an article (BusinessInsider?) that summarized an interview with the venerable Art Cashin (head UBS floor trader) regarding hyperinflation. Cashin is a contributor to CNBC on a daily basis. He talked of two periods when there was severe hyperinflation. He cited Germany in the 1910s and Zimbabwe more recently. He thought Zimbabwe was statistically insignificant because of size. He said the German hyperinflation directly led to World War Two.
I had my son (finance degree) read the interview to punch holes. He couldn’t.
Bottom line, from my limited research, is that with cash being devalued overnight, the best approach is in hard assets that will “inflate” along with the economy. Most recommend real estate or other assets that will have a value increase. It’s almost if they all deal with food, shelter, or clothing. I would add that precious commodity of ammo. They seem to discourage cash dollars and metals, and anything that is perishable. Stock/bonds are a no-no. Non-perishable food stocks is useful.
So, in my situation, it will be a two step process. First, I’ll reduce my HSA, IRAs, and brokerage accounts to cash. Then, second, I will “convert” as much as I can to real estate, etc.
I’m not a Prepper, but am beginning on making preparations so that if there is no overnight “pop,” I will not be disadvantaged. I can’t tolerate my assets losing 80% value overnight.
I’m always open for other thoughts and advice. This is a serious issue that our bureaucrats/politicians will not address. It will be every man (or woman) for himself (herself).
Again, thank you for your service.
Gwjack
P.S. on a related, but not direct note, has anyone heard where DHS stockpiles their ammo?
The Fed’s “Exit Strategy”…Monkey Money!
http://www.silverdoctors.com/the-feds-exit-strategy-monkey-money/#more-22932
“Might as well payoff your mortgage if you haven’t.”
Might as well buy metals. With the hyperinflation coming you’ll be able to pay off that mortgage with a few coins.
Japan? I dunno. But I believe that it will have to be a trigger event followed by a cascade of collapses. But that and a couple dollars will get you a cup of coffee.
1: I have reasonable, not religious respect for Jim Rogers.
2: I agree that the market appears nearly fully-valued.
3: But to sell stocks means that a preference is being expressed for cash over risk, or cash over dividend paying items, or, if a waterfall event occurs, the cutoff of losses as expressed by big fat red numbers on a screen.
So the question is, and fundamentally I am modestly bearish but I see what is going on, I think, what are the probabilities of the items in #3?
Frankly, I do not think they are large. The investors who have had the stomach lining to hold on through the volatility events of the past few years have been richly rewarded. The panickers have been left behind. The shorts have been demolished.
If you want to say that onshore oil production will stanch the flow of dollars ex-US and in some way strengthen the USD, yes, it is true that a stonger dollar has been associated with weaker stocks. That correlation now appears to be weakening. Additionally, we see considerable funds inflow from foreign sources.
So if you want to say “stocks are too dear, they are too high”...I believe that to complete such a bear case thesis, one also has to express something or other about about why there would be a sudden preference for cash. And this I do not see. Could there be a single-digit correction in our immediate future? Absolutely. I think it would be bought back up such if you weren’t watching, you would scarcely see it.
Opinion only, of course.
which Missouri Bond fund do you have (if I might ask)? I want to move more into municipals to reduce taxes and starve the feds
I liked your synopsis but would suggest inflation is or won’t be the problem will will face in the states.
If you take an objective view, the FED is fighting DEFLATION by devaluing the US Dollar and trying to create inflation.
Inflation and Hyper-inflation is really bad, but deflation is the bitch that won’t leave.
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