Tuesday, February 19, 2008

Jim Rogers Kicks Ass

So what's new, you might ask. Jim Rogers has been kicking ass and taking names for decades. Well, there's nothing new about it, but it is still worthwhile to enjoy each additional time he does it. Here he does in this interview. I recommend you to read the entire interview, but I will here quote one of the things he said about Bernanke.

"We know now he doesn’t even know about economics. I mean, he’s got a PhD in economics and he was a professor of economics, but he doesn’t have a clue about economics.

I will quote you – I hate to quote you, but one more time - I was watching him testify before congress and I almost fell out of my chair. He said under oath, so we presume he wasn’t lying, that he was just a fool, he said if an American only buys American products, it does not matter to him if the value of the U.S. dollar goes down. He will not be affected. I was looking at the man to see if he was lying, giving government propaganda, but then I could see he didn’t even really understand.

He didn’t understand if, you know, even if say I’m an American, Lindsay, and I only buy American tires. Well if the price of foreign tires goes up, obviously the price of American tires are going to go up too. Plus, if the dollar goes down, the price of rubber’s going to go higher, etcetera, etcetera, etcetera.

So the man doesn’t even understand economics. He’s going to print money. He’s going to throw money out the window. The dollar’s going to go down further and further and further. Inflation’s going to get worse and worse and worse throughout the world – the world, not just America - and we’re going to have a worse recession in the end."


Anonymous Anonymous said...

Rogers is quite right of course.
Bernanke is a Keynesian and they do not know "Economics", Human Action or Praxeology.

However I do believe that when inflation increases "to much", they will have a new Paul Volcker in USA.


12:25 PM  
Anonymous Anonymous said...

Hear, Hear! I remember first being impressed with Rogers after reading his first book - his practical, on-the-ground, common sense analysis was both informative and entertaining. His frequent interviews are no less so.

I had the chance to exchange emails with Rogers a while back, and his basic opinion on the Fed is that it will eventually die, subject to its own ineffectiveness.

6:15 PM  
Anonymous Anonymous said...

note the crb spot commodity index has almost gone vertical. sure, commodities look good medium to long term, but short term looks like a blow-off. the usd also seems to be forming a base, notwithstanding gloomy fundamentals. countertrend rally imminent?

7:34 AM  
Blogger stefankarlsson said...

Newson: considering the extremely fast pace of the commodity price rally in recent weeks and months, there is a high risk of some form of short-term correction. However, the underlying fundamentals in the form of a structural commodity shortage and high inflation ensures that the rally will soon be back in place.

As for the dollar, I remain very bearish on it. The weak underlying fundamentals in the form of a massive external deficit and lower interest rates than elsewhere means that it is highly overvalued. It is only a matter of time before the currency markets realize this.

11:52 AM  
Anonymous Anonymous said...

FED die? Highly likely, of course.

One could read "The Case aginst The FED" by Murray Rothbard, wich is a perfectly excellent book on that particular subject.


9:46 AM  

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