Posted on 06/28/2015 3:38:59 PM PDT by Hojczyk
Rogers: What is happening right now is a historical anomaly. Never in the thousands of years of recorded history have we had interest rates at zero or negative. We are destroying the people who save and invest for the future. They are being wiped out at the expense of the people who bought four or five houses with no money down and no job. We are destroying the people that all societies throughout history have needed the most.
When you destroy the investing and saving group, your society, economy, and country has problems.
What about Greece?
Greece is a sideshow that could turn into the main show because politicians keep making mistakes. What is best for Greece is to declare bankruptcy, stay in the euro, and start over. They will never be able to pay their debts. We’ve had states, cities, and counties go bankrupt, and they didn’t leave the U.S. They reorganized and started over. If Greece went bankrupt but stayed in the euro EURUSD, +0.0000% , we’d have a bit of a trauma but we’d move on. If they make Greece leave, it would turn into the main show.
Any final thoughts?
In 2008, we had a problem because debt was piled so high, but now the worldwide debt is much higher than it was then. In the U.S., the Fed’s balance sheet has gone up five or six times. Worldwide, all of these countries are talking about austerity, but they continue to run up higher and higher debt. Unfortunately, the world doesn’t have the luxury to lower interest rates much more. To pump up the stock market, all they can use is printed money. The next time around will be pretty horrible for all of us. I hope that you, your readers, and I survive.
(Excerpt) Read more at marketwatch.com ...
“What is best for Greece is to declare bankruptcy, “
In what Court?
Who???
"What is happening right now is a historical anomaly. Never in the thousands of years of recorded history have we had interest rates at zero or negative. We are destroying the people who save and invest for the future. They are being wiped out at the expense of the people who bought four or five houses with no money down and no job. We are destroying the people that all societies throughout history have needed the most."
They may be the people society needs most, but they're not the people politicians need most.
Politicians need people who's votes they can buy as cheaply as possible. The problem is that the votes of the people who save and invest for the future are too expensive.
Cheaper votes must be found, and they will be found. If they're not available domestically, they'll be imported from other countries.
What is he buying?
Excellent, succinct analysis.
He is buying China. Evidently he doesn’t care that their companies are crooked from top to bottom, and that Xi has restored totalitarian rule and is ruining the country.
Greece simply refuses to pay anything any more on any of its debts. That’s bankruptcy.
I met Jim Rogers at a motorcycle rally during the Clinton years. He’s an egotistical whack job. One of the guys asked him about a certain stock and he told him that he didn’t give advice because his opinions could effect the market drastically. He did say that Clinton would be the last Democrat president.
No, that’s default. Bankruptcy is a legal proceeding in a court of law.
L
Thank you.
Politicians need people who's votes they can buy as cheaply as possible. The problem is that the votes of the people who save and invest for the future are too expensive.
January 23,1964. 24th Amendment ratified. Paying taxes unnecessary for voting.
May 7, 1964. "Great Society" "War on Poverty" begins. Huge expenditures of federal dollars targeted at poor non-taxpayers. Massive chunk of new created voters persuaded to vote Democrat.
Fiscal/Social ruin.
Eating our seed corn - we will starve to death in the cold and dark....
As the Thai say, “same same, but different”
Meet the new boss...same as the old boss.
or burning it in our cars
All this stuff about monitary iassues reminds me of an essay I wrote on the suject. Here is the last paragraph.
Now all this seems fairly insane, until you realize that every member of the G-20 behaves in much the same way, and do understand their precarious situation. With the recent debt ceiling deal the accumulated obligations of this country exceed our GDP, allowing us to share the dilemma Greece presently faces. By 2037 the CBO reports national debt will become 200% of GDP to reach that of Japan. Since all currencies have about this same connection to reality, finding one or several of sufficient magnitude and viability to replace the dollar as a worldwide medium of exchange and store of value becomes perplexing.
An individual country might think they have a solution, but they know they must also survive during the resulting chaos as all countries seek similar solutions. They see the daunting specter of disaffected holders sending trillions of dollar denominated bonds to the marketplace when there are no buyers unless prices are severely discounted. They are also frightened by the image of a devastated U.S. economy, because feeding the insatiable desires of U.S. consumers has been a mainstay of their prosperity.
I imagine something like the final scene in “The Good The Bad and The Ugly”. The members of the G-20 are standing in a circle with open graves behind them. They are all contemplating how they are going to successfully outdraw the other nineteen members and survive the resulting mayhem, which Lee Van Cleef’s character did not.
Pretty sure he's buying the EUR/USD
Because it’s hard to buy stuff people aren’t selling?
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