Jim Rogers: "Bernanke Is A Disaster" Who Will "Bring QE Back"

Tyler Durden's picture

Jim Rogers spoke to a very dramatic and even more hoarse Bartiromo, touching on old and well-known themes, namely that the administration is essentially using up its last stimulus bullet with the current recession: "When the problems arise next time what are they going to do? They can’t quadruple the debt again. They cannot print that much more money. It’s gonna be worse the next time around." Alas, as Obama appears to be preparing, "they" will simply do more of the same: the same payroll tax that was supposed to cure all evils in December. The fact that nobody anticipated something so stupid is probably indicative of the administration's genius. Or lunacy. Followed by more dollar printing of course. On what needs to be done to avoid the debt ceiling breach which will shut down the government, Faber believes that nothing short of Draconian measures will be relevant: "We’ve got troops in 150 countries around the world. They’re not doing us any good, they’re making enemies. They’re costing us a fortune." On the other hand he acknowledges: "we can never pay off these debts." As usual, Rogers saved the best for Bernanke: "Since the first day Mr Benanke went to Washington I knew he was going to be a disaster. He has never been right about anything in the 7 or 8 years he has been there. I hope he doesn't come back with QE3 but that's all he knows. The only thing he knows to do is to print money. He doesn't understand finance, he doesn't understand currencies, he doesn't understand economics. He understands printing money. It's the wrong thing to do but that's what he'll do... They're gonna bring QE back because he will be terrified and Washington will be terrified," he said. "There's an election coming in November 2012. Washington's gonna print more money." Lastly, in terms of investments, Rogers is long the dollar but only "for a rally", and also owns Chinese stocks and commodities, would be buying more gold and silver if the price were to go down, and is short tech stocks and JP Morgan. Like we said nothing new. With one addition: the republicans will now get tax cuts, so democrats get QE3. As we have been saying - 2011 is nothing other than 2010 all over again.

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Conrad Murray's picture

Marc Rogers?! What an insane beast of investing that would be. The Duo of Doom coming to take your profits and drink your beer.

flyr1710's picture

marc rogers was his alter ego interviewing him

Conrad Murray's picture

You beat me to my edit. Wanted to add:

the republicans will now get tax cuts, so democrats get QE3

Absolutely no reason the People should have to pay taxes when the State can print at will. Until Bernanke, Geithner, and Paulson are in prison, and Bush, Cheney, Obama, and Biden are tried for war crimes, the United States of America is a joke.

Hugh G Rection's picture

Bush Cheney Obama and Biden in general population at pelican bay would make a hell of a reality show!!!


O man I would watch the shit out of that.

TruthInSunshine's picture

Jim Rogers sez:

Bernank done and gone brung in the noize & brung in the mo'fo'ing pain, bitchez! Someone slap & splatter that Bernank buzz buzz like the malaria carrying bitch he iz!!!


Seriously, that was an epic rant, impeaching Bernanke's ability to use even the most basic, core competency, let alone not do incredibly asinine things, even by Jim Rogers' standards, who knows that we know he is no fan of Bernankstain.


Beautiful. I watched it twice.

dolly madison's picture

Bernanke looked like he really did have malaria at his little talk the other day.  Did anybody notice that?  He was pale and mis-spoke repeatedly.  Based on how he looked, I think things could fall apart pretty quickly from here. 

Real Estate Geek's picture

That would be must-see TV.  But not at Pelican Bay, because it's a SuperMax.  I want those guys sent to a place where they have to get by out in the yard with the hoi polloi.

boiltherich's picture

I am from the county where they built Pelican Bay and I would much prefer they send them elsewhere.  Just hang them in fact.  As if I needed to be reminded I rented Fair Game the other day, there were at least 5 different treasonable acts committed by the top end of that administration in regard to Plame and the lies that took us into war in Iraq, sad mess this nation is, I am very pessimistic about our collective futures.

monkeyshine's picture

Absolutely no reason the People should have to pay taxes when the State can print at will.


100% agree.  We have a $1.5 trillion deficit largely due to the attempts to stimulate the economy. Imagine the stimulus if NOBODY had to pay taxes, and instead of all the stumulus BS they just pass the 2008 budget and paid for it with borrowed money! Our net-importing/consumerist/service-based economy would be booming and the system would be well greased with cash.

I got another out of the box idea. What we did 30 months ago was to take Investment Banks and merge them with regular banks so that they could borrow money at Fed Window in the hopes that the money they borrow would trickle down.  Imagine our surprise that Investment Bankers grabbed all the cash they could and then refused to lend it!! (sarcasm).  Instead of giving money to people who would rather hoard it or invest it in stocks, options and bonds, how about we just lend money directly to homeowners at 3% for up to 30 years fixed.  Every houshold/family would see their mortgage cut in half or more, there would be fewer defaults, and there would be more money to invest, save and spend?  While it may be a loss compared to T bills, it wouldn't be much of a loss, yet it would also grow the GDP, be an investment in Americans.  

There are plenty more out of the box ideas I'm sure.

And while I agree, we cannot sustain a consumerist/net importer/service-based economy (unless we can figure out how to export a shitload more services (I did see a lot of Starbucks and Subways on my last trip to Europe but the royalty rate on coffee and sandwich meat can't be all that lucrative)) we won't make a shift back to a manufacturing/producing economy without capital and a significantly smaller list of federal regulations without capital being made available to risk takers.  And giving money to Investment Bankers who are guaranteed a spread for NOT taking risks is simply not going to create a big pool of venture capital. What we need is real people's real money sloshing around the system competing to be lent to the best ideas. 

Fire away...


Conrad Murray's picture

I would like to see the mortgage situation fixed as well, but I would deal with it a bit differently. First, every mortgage in the country has to be reviewed. During the process, if your title was not properly conveyed, the deal is off. The responsible party will return all payments made. Anyone who invested in structured products, tough shit. Whoever is the last legal owner of the property gets it back.

Second, there are no bailouts. If this process causes a bank to become insolvent, it is immediately seized and resolved. The top 20 people(arbitrarily picked number, adjust as seen fit) at the institution forfeit everything they have and are set for execution.

Third, this will likely cause the Federal Reserve Corporation to go bust as well. Same for them with respect to consequences except the top 100 people are set for execution.

Finally, of all those set for execution, anyone who comes forward with sufficient evidence of wrongdoing from a local, state, or federal government official, can have his or her sentence reduced to life in prison. If execution is still preferable, 2% of his or her possession will not be forfeited, but will instead be left to immediate family. The government official will forfeit all property and be set for execution, and the same offer made for whistleblowing.

dbach's picture

I like those ideas. Re: the first one, how about a purely fiat money system instead of this debt based one? Any deficit the government makes will just be printed. That way you don't need a fed and any inflation is directly the governments fault and they can be held responsible directly rather than the current pseudo democratic fed system.

I also like the other idea, and have thought that myself over the past few months. If Ben did actually fly his helicopter in and air drop money to the people that actually need it we would still see some inflation, probably similar to that of the inflation spurred on by traders, but at least the poor and middle class would have the money to keep up with the inflation instead of it all going to the top tier of society.

Ideally I am for sound money, but the system we have right now is neither sound money or inflationary fiat, but someplace in between that ultimately fleeces the ignorant masses and accumulates in the hands of a few rich entities.

Conrad Murray's picture

Now, I'm not actually for this, but if we're going to do crazy shit and just throw money around, this is how I would like to see it.  Once a week .gov pulls 50 SSNs at random of people making less than 250k/year and gives those people 100k. I think that would be a bit better than helicopters.

dbach's picture

That would save on gas for the chopper...

Chuck Walla's picture

Does any of this really matter anymore? If we have one more QE, shouldn't that be enough to put this broken old horse down? The legs are gone and the back sways under the weight of the centrally planned welfare state.

BobPaulson's picture

QE is a tax on TBill holders and I concur with the above idea that true fiat is an improvement over the convoluted debt fiat via the private bank called the FED. The obvious problem is similar to pre-revolutionary France, your cycles of fiat devaluation and new fiat currency reset keep getting closer and closer together until people just avoid the bogus fiat and go to bartering.

boiltherich's picture

"QE is a tax on TBill holders..."


Just to be clear again, who is it that is forcing all these bill, note, and bond holders to hold that debt?  QE is a tax (inflation tax) on all who hold and use dollars for sure, and that is involuntary (at least domestically) because dollars are the only legal tender here, but nobody is making "investors" hold Tbills so if they are getting screwed they must be enjoying it somehow.  You never know what utility some people get out of some things but they do the damndest things so they must have their reasons yes?  I can't imagine the utility in meth but millions of people seem to be using the stuff.  Go figure.  People still smoke too. 

ColonelCooper's picture

I know I'm late to the party, but the tax/print part of your comment is exactly what I was thinking. 

hamurobby's picture

I just couldnt see Faber in a bow tie.

Ergo's picture

Cough syrup with codiene - that's what Maria needs.  Fixes the voice immediately.  If you're in the business of talking, you should know that.  (I had to do it once before a trial setting.  Worked like magic.)

Xibalba's picture


spinone's picture

We privatized the currency to the Federal Reserve. They will manage the currency for the benefit of their shareholders until no mor eprofits can be extracted from the United States. Then they will dump the dollar, and go international, and create a new currency they can continue to make money off.

As long as they can continue to make money from the dollar through bailouts, they will continue to wring it dry. Once the bailouts run out, they will move on.

OrestesPenthilusQuintard's picture

Partly true, but 2012 is probably the year that one of the last cards, if not the last that "The Order" will play.  You'll see:

Pick one:

-false flag fake alien attack / invasion (least likely)

-false flag biological attack, get your vaccine (chip) or got to a detention center (FEMA camp) (most likely)

-false flag "terror" attack.  Not as likely as you'd think seeing that it would have to be PERFECT with all the cameras around.

-World War III - nuclear re-set, population implosion Denver Airport mural style Georgia Guidestone population buster.

BobPaulson's picture

They don't need that. The frog is quietly boiling in the pot. You don't have to pull it out and hit it with a hammer.

alexdg's picture

True, HLS and TSA have gotten us all into submission.

wisefool's picture

I love stuff like the DIA conspiracies. But nobody seems to have any new creepy stuff on it.

Is there anything more recently discovered that is that truly creepy? I don't get into the ghost/UFO hunters type stuff, cause it is a little to McReality/$$$ for me. DHS/TSA/HSA is kinda interesting, but I pretty much know thier game. Get a pension. CDC came out with a zombie survival guide, but that was just more along the lines of making some news for themselves.

Hedgetard55's picture

" On what needs to be done to avoid the debt ceiling breach which will shut down the government, Faber believes that nothing short of Draconian measures will be relevant: "


It would be very kewl to have Jim and Marc on together.

gmj's picture

Sounds like they were in the same body.  Heaven help us.

apberusdisvet's picture

Thye only thing that saves Obama is WWIII, and he is dysfunctional enough to go that route.

nathan1234's picture

I agree. The seeds have already been sown. The full fledged war should start shortly. Before the money runs out the war needs to be started.

Also before the world realises the dollar is nothing but monopoly money and of no value. The US just prints up the dollars, hands them over to the 130 odd countries where they have military bases and says - here is money for my troops expenses.

BobPaulson's picture

Keep in mind that when it comes to that, guess who has the most gold in the world? The U.S.. It's comical actually: rob everybody blind by flooding the world with funny munny only the U.S. can print, then for the icing on the cake, you force a return to a gold standard new dollar and you're the banker again. Wash, rince, repeat.

Bay of Pigs's picture

"Sorry to inform you Bob, we don't have all that gold."

Robert Rubin

BobPaulson's picture

Probably less than they say, but I bet it's still the most.

equity_momo's picture

WW3 started in 2001. As wars often are , this one is about resources. Youre just waiting for the other big actors to get involved: china and russia. So far theyre biding their time because the US machine is still to be feared. This is the long game - as fossil fuels become more expensive on a relative basis , the US machine will weaken , and when its weak enough to strike , china or russia will pull the plug on the dollar. Thats not for some time though. In the interim , sit back and enjoy more US troops exerting pressure around the World.  As sad as it is , without them your standard of living would be much much worse already.

Confused's picture

Standard of living much worse? There are plenty of countries that don't overtly engage in foreign policy similar to that of the US, and their standard of living (and quality of life) is equal to or better (in some cases). 

equity_momo's picture

They all benefit from the US global hegemony.

dolly madison's picture

Yeah, Obama's definitely working on WWIII right now with Pakistan.

baby_BLYTHE's picture

Marc Faber believes an attack or "event" like Egypt would be the catalyst for WWIII scenario.

buzzsaw99's picture

He can matter of factly make those statements because that IS what will happen. There is no wiggle room, no, gee, I wonder what they will do next? More of the same. Book it.

chump666's picture

rogers is a legend!

Mr Lennon Hendrix's picture

How long before the talking heads on the squawk box realize all the big financiers and traders think there is no recovery and that there will not be one as long as Keynesian policy is used?

Dr. Acula's picture

It will take a long time indeed for them to realize things that they're paid not to realize.

wisefool's picture

It is difficult to get a man to understand something when his job depends on not understanding it.
- Upton Sinclair

There is only one way out of this. Drop one of the Fed's mandates. It does not matter which one. Humanity has an incredible ability to adapt and thrive. Not to be to arrogant about ourselves, but we are basically the walking,talking, dancing, all singing collection of the best evolutionary traits this world has ever had to offer.

But we need the spiritual stuff. And we will not mature as required as long as we insist on sucking both tits of the fed (price stability, full employment) while the tax code (pile of shit) further smells up the situation, but does not show up on film.

Signed -
Axl Rose, Darwin, A higher power, The Fed, and South Park's Butters.

But seriously. Absolutely must do one of the following:

1. Drop one of the feds mandates.
2. Fix the tax code.

All the way from the fact that corps have trillions expatriated, to the fact that most strippers get foodstamps, but have cash incomes in excess of $50k/yr. Meanwhile, lots of other people with legitimate jobs are eating ramen noodle they pay for out of their own pocket.

Dr. Acula's picture

The USA did not need the previous two central banks and they do not need this one either.

Nothing bad happened when Andrew Jackson revoked the charter of the Second Bank of United States. The head of that bank, Mr. Biddle, tried to get revenge by monkeying with the money supply to create a recession, but the market quickly repaired the damage once that group of assclowns was shut down. It was hard to shut it down though, since a lot of corrupt politicians were on its dole.

wisefool's picture

<sarc> Andrew Jackson? You mean before the civil war</sarc>

Not everybody at the fed is as ignorant as the Bernake. Not everybody at the Fed is as evil as our current, and past cannibals who ride around in limos (lib and conservative)

And in that same vien I do love Ol'e Hickory above every other president (despite his flaws). But he did have a nation with lots, and lots of precious metals still in the ground and a small enough population to pull it off.

We are not so lucky, and I think if he was alive today he would acknoledge that. Can you imagine him opening up an email from some nigerian price offering 100 Tons of gold if he would only offer up some of USA's blood or land, just so he could facilitate a domestic  gold standard?

Nixon was also right. JFK was also right. They don't build 'em like that anymore, so we gotta leverage what we got.


Dr. Acula's picture

No offense, but your post sounds like nonsensical and sentimental rambling; it's hard to see if you are making any point at all.

wisefool's picture

Agreed. I am not as astute as many here. But Did not Jackson have the ability to set up a gold standard? And it was an easily accepted and trusted alternative?

Why didn't JFK do that? I argue that he would of, if he could of, but he could not. He went to the other extreme of bypassing the Fed entirely, and that did not work out either.

I am saying treat the psudo scientists at the Fed like you would any scientist. Let them think they are incharge, but have engineers (us) pick and chose what is implemented. Specifically, drop one of the mandates or the tax code, but let them still participate in some capacity and have joint press conferences with the politicians/TPTB.

Again. I am not very smart about this stuff. So honestly, you don't have to reply.


Freddie's picture

No the Fed is evil. 

Where are all the libDem  Obam Hussein a*s boys who post here on Zh defending the Kenyan?  They have been quiet lately - probably texting their weiners.


Dr. Acula's picture

>the Fed is evil. 

It's a bastion of pseudoscience.

Perhaps an economist can explain why the price of loanable funds, i.e. the interest rate, needs to be fixed whereas other economic goods, like potatoes, don't need price-fixing.