Jim Rogers Says Rescue Plan Will Create Massive Inflation, Buy Commodities

[Purveyor]

The current rescue plans, which will force governments to issue more debt, print money and flood the markets with liquidity, will flare up inflation after the crisis is over and will create worse problems, Jim Rogers CEO of Rogers Holdings, told CNBC.

"We're setting the stage for when we come out of this of a massive inflation holocaust," he said.

And the plans are unlikely to fend off a severe economic downturn, as the crisis starts affecting all walks of life.

"We had the worst excesses we had in credit markets in world history. We're going to have to take some pain," Rogers said.

"Many people bought four or five houses with no money down and no job.....You think we'll just say well, that's too bad, we'll start over and nobody loses their job? Be realistic."

"What about all the people in countries that minded their manners, saved their money, didn't get overextended and now all of a sudden they're being asked to bail out a bunch of guys on Wall Street who were incompetent at best and some of them crooks?"

"I thought it outrageous that anybody has to step in a bail out a bunch of 29 year olds driving Maseratis," he said.

There are not many safe havens in the volatile markets, he said.

MORE...

BUSINESS INTEL ME: http://www.bi-me.com/main.php?id=25473&t=1&c=62&cg=4&mset=

[pitohui]

1. jim rogers always says buy commodities

only 10 percent of commodities investors make money, including very intelligent people like hillary clinton have lost money investing in commodities, so do you think you are more intelligent or more informed or luckier than hillary clinton?

my guess is that you would be better served by ignoring jim rogers

[Purveyor]

5. A few of Jim Rogers previous thoughts...

Perusing these previous article, one would have been wise to take into account "some" consideration what the man is/was saying. Just saying...

August 21, 2008 Exclusive Interview: Jim Rogers Predicts Bigger Financial Shocks Loom, Fueling a Malaise That May Last for Years http://www.moneymorning.com/2008/08/19/jim-rogers/

July 14, 2008Fannie Plan a `Disaster' to Rogers; Goldman Says Sell http://www.bloomberg.com/apps/news?pid=20601103&sid=av8pcGLz4lr8&refer=us

March 19, 2008Jim Rogers quits dollar after declaring US recession http://www.telegraph.co.uk/finance/markets/2818219/Jim-Rogers-quits-dollar-after-declaring-US-recession.html

February 28, 2008 - Quantum's Jim Rogers says US 'out of control' http://business.timesonline.co.uk/tol/business/economics/article3451136.ece

August 3, 2007 - Jim Rogers Calls U.S. Housing Market One of History's `Biggest Bubbles' http://www.bloomberg.com/apps/news?pid=20601109&sid=a2Rnaf9tZJbA&refer=exclusive

November 15, 2007 - Jim Rogers Urges Investors to Sell U.S. Dollar Holdings as Currency Slumps http://www.bloomberg.com/apps/news?pid=20601103&sid=aXH9wCx1oydw&refer=us

April 11, 2007 - Rogers shorts U.S. builders, eyes more losses http://www.reuters.com/article/GlobalHedgeFundandPrivateEquity07/idUSN1044091420070411

March 15, 2007 - Top Investor Sees U.S. Property Crash http://www.reuters.com/article/newsOne/idUSL1470530620070314

[pitohui]

8. jim rogers has been publishing for way longer than since march 2007

i suggest you be a little more honest and go back to the 1990s and publish the titles of jim roger's posts from that time

yes, if you live each day as if it is your last, one day you'll be right

a stopped clock is right twice a day

if i write twaddle for 30 years and one day a bad thing happens it doesn't make my twaddle right

this guy is a libertarian fuckwit, why are we giving him publicity, next?

[Purveyor]

12. Be my guest. I provided some of his most recent articles. If you have articles to

back your claims...produce them.

I'm not going to do the work 'for you'.

[girl gone mad]

17. Who says he's a libertarian?

He was partners with Soros. I think he knows something about money.

[still_one]

2. That may eventually be, but not for the time being, especially in recession or depression

you cannot have it both ways

However, when we get out of this situation, which can be 5 years, give or take two years, I agree, inflation will be a big concern

Right now, cash is king, and capital preservation is paramount for those that still have cash

[CountAllVotes]

3. cash has been king since 2000

as soon as the Supreme Court voted on Bush v. Gore (note SARAH!).

:dem: :kick:

[dipsydoodle]

4. governments , plural ?

I think you'll find that most other governments still publish their M3 figures - unlike the USA.

take some pain ? - it's the Guillotine they need.

[roamer65]

6. Probably a double dip recession/depression.

With all of the currency creation, once the banks let the liquidity "loose", inflation will start to surge. The Federal Reserve will then have to hike rates to 15-20% to kill it off.

I expect a replay of the 1979-82 double dip recession at the very least.

[Generic Other]

7. 29 year olds driving Maseratis

The new face of evil? Wow. This is why I have to eat ramen?

[pitohui]

9. you have to eat ramen because of 60 yr olds driving multiple vehicles

but it's more fun for fucktards like jim rogers to blame some young kid playing poker for our problems

[Generic Other]

10. yeah you're right...most of the 29 year olds I know are going hungry

Those fatasses playing with our money own luxury cars, fancy vacation homes, trophy wives, infinity pools, planes, yachts...even their widows live high off the hog. Linda Lay sure slunk off with her criminal husband's enron loot.

[Leopolds Ghost]

16. The fatasses responsible are ordinary upper-middle-class white urbanites

Who think they are something special in this country (and half of them vote Democratic -- on social issues only, of course.)

They have of course always supported the interests of the rich because they believe in social welfare -- for deserving citizens only.

They're the ones who bought all them cars and houses on credit, depriving other people of resources through hidden equity inflation and debt slavery.

[CreekDog]

11. I hate stupid advice...and if people do that then what happens?

the price of commodities goes up, artificially actually, then a bubble in those then a crash in those prices leaving you, the later investor screwed, and Mr. Rogers who presumably took his own advice earlier, in fine shape.

it's this mentality that is causing bubbles and causing them to burst.

"everybody should invest in X"

"X is in a bubble"

"sell X while you can"

"buy Y it will protect you while X is tanking"

"Y is in a bubble"

get the idea? :banghead:

i'm so sick of this shit, STOP LISTENING TO PEOPLE WHO MAKE MONEY OFF YOUR DECISIONS!!!

[Mira]

13. When Jim Rogers talks, I listen. And have for about 20 years now.

[lib2DaBone]

14. I like Jim Rogers.. I read all his books...

...but I lost a ton of money on commodities last Good Friday when the Bear Sterns deal happened and the commodities crashed. I didn't have stops in place (it happened lightning quick) My own fault. Jim Rogers was born into money and has a big bankroll to play with, which makes the game easier. Commodities aren't for the average investor. imho

[girl gone mad]

18. I don't think he was born into real wealth.

He grew up in a tiny town in Alabama. His parents may have put him through Yale, but he earned his own money after going to Wall Street.

From his Wikipedia page:

Rogers, whose full name is James Beeland Rogers, was born in Wetumpka, Alabama. He grew up in Demopolis, getting started in business at the age of five, picking up bottles at baseball games. He got his first job on Wall Street, at Dominick & Dominick, after graduating with a bachelor's degree from Yale University in 1964. Rogers then acquired a master's degree from Balliol College, Oxford University in 1966. After Oxford, Rogers returned to the U.S. and enlisted in the army for a few years.

In 1970, Rogers joined Arnhold & S. Bleichroeder, where he met George Soros. That same year, Rogers and Soros founded the Quantum Fund. During the following 10 years the fund gained 3,365% while the S&P advanced about 47% (963.99/800.36).<1> It was one of the first truly international funds.

[Waiting For Everyman]

15. Ok. This deflation is dangerously inflationary.

That's right, when in the midst of deflation, austerity is "the plan". What a genius! Another Reaganaut. Aren't we done with them yet?