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Jim Rogers Warns "We're All Going To Suffer From This Crazy, Crazy Money Printing"
Submitted by Tekoa Da Silva via Bull Market Thinking blog,
I was able to reconnect with Jim Rogers this morning out of Spain, legendary co-founder of the Quantum Fund with George Soros, author of Hot Commodities, and chairman of the private Beeland Holdings.
It was an especially powerful interview, as Jim spoke towards the relentless downward pressure on gold, the upward explosion in interest rates, central bank money printing, and how to protect yourself ahead of the disastrous times he sees coming.
When asked if we’re seeing forced liquidation leading the smash down in gold this morning, Jim said,
“We certainly are. There are a lot of leveraged players who are now being forced to sell. Usually when you have this kind of forced liquidation, you’re getting closer to a bottom, maybe not the final bottom, but certainly close to a bottom. I even bought a little bit [today].”
With regard to the intense bearish news stories being published on gold, Jim suggested investors shouldn’t ”Pay [much] attention to other people. I pay attention to what’s going on... Obviously with gold collapsing I know about that - but I don’t listen to other people.”
Over the last few years Jim has spoken extensively on shorting government bonds, and more recently, the 10-year U.S. treasury yield has rocketed higher (with a corresponding collapse in value). When asked if now is a good time to be covering those short bond positions, he explained that,
“I’m grappling with that question as we speak... I’m not short government bonds, [but rather] I’m short junk bonds on the theory that they will suffer the most when the bond market finally breaks. The junk bonds will go first, [along with] emerging market bonds. So I’m trying to figure out what to do, but I am not covering my shorts [just yet].”
Commenting on the Fed’s historical ability to control the bond market, Jim said,
“We’re getting to that point where either one of two things are going to happen; either central banks are going to stop all this [money printing], or the market is going to force them to stop it. It looks like we may be having a juncture of both... where the Fed is getting worried... and at the same time, the market is jumping in and saying, ‘Yes, it’s insane what you’re doing, and this has to end.’ So we may have a healthy convergence of both. And if it’s not ending now, it’s going to end sometime in the next year, because this cannot go on - it’s too insane.”
When asked about the explosive riots occurring in Brazil, Jim warned to prepare for much more, in that,
“This is the first time in history where you’ve had all the central banks in the world printing money at the same time. Europe, Japan, America, and the UK, all, are frantically trying to debase their currencies…I’m afraid that in the end, we’re all going to suffer perhaps, worse then we ever have, with inflation, currency turmoil, and higher interest rates. As I say, this has never happened before, it’s never been a good policy in the long run, so I’m afraid we’re all going to suffer for the rest of this decade from this crazy, crazy money printing.”
As a final comment to investors looking to protect themselves from these impending disasters, Jim said,
“The way to protect yourself is to own real assets... because that’s the only thing which will protect you as currencies debase.”
“If you have money in the financial system and the financial system collapses,” he added, “even though you may have done nothing wrong - you may suffer because somebody else did something wrong. So you need to be very careful about where your assets are in the financial system, or have strict control over them yourself, so that you’re not going to lose them.”
And here is the audio of that interview:
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This talk about players selling gold for liquidity is a complete myth, apparently even sucking in Jim Rogers and Zero Hedge:
http://winteractionables.com/?p=3959
Bingo Russwinter. Now sit back and relax.
Thanks for that. First I've seen actual data.
Russ I'm fairly sure there are plenty of funds like Paulsons liquidating their "gold" for liquidity....its called client redemptions......and they will cast off what is unpopular and killing them...that being gold......
That is true, however that would typically show up in the GLD ETF, and redemptions have been modest of late. They have ALREADY liquidated nearly 30% of the GLD YTD. This is old news.
what has sprott been unloading??? no friggin chance his clients arent screaming bloody murder and demanding their money NOW................and what about gold futures positions....funds that never intended to take delivery but still count as "gold"..............im sure those are being jettisoned...........sorry but i do agree with rogers....."gold" is getting liquidated....
yep. "this is not a game for cheerleaders."
Historical shorts in the gold market.......WHO has the margin to do that? Oh wait, The Bernack doesn't have to follow the rules........
1. Texas demanded their gold
2. Germany demanded their gold
3. Venezuela demanded their gold (ship sunk on the way, Right...)
4. JPM vault down historically low
5. Others demanding their gold after MF Global
6. Russia, China and India all buying gold
Any question WHY the gold (paper market) took a hit right now? Call any gold suppliers (ie Gold Line, etc) they are SOOOOO busy right now. The Bernack is helping people buy more physical gold which will in the end help fight this Tyrannical out of control government we have. Way to fight back is be prepared to be self sufficient!!!!!
Not true....I ordered from Gainesville...no delay whatsoever....I'm willing to bet that capitulation is hitting the physical market as well......
I never stated there was a delay......... They are busy. I'm willing to bet that capitulation is not hitting the physical market. More people are awake today to the lies of the government and FED........ Why do you think the RECORD short positions? The Bernack needs more short positions to fight off the physical purchases trying to drive the price up........... think about it with logic, capitulation is not "historic" short positions; it would be from people closing out long positions.
reading comprehension is your friend. Normally you're OK kito but on this one: delay is not the same as "busy". One could imply the other but not necessarily. Unless post was edited before I saw it, I saw "busy"
i disagree kito. sprott maybe unloading for redemptions, but, phys is being bought up faster than popcorn at the lineup at a cinemax theatre. I talk to accountants and brokers all the time. Most are unaware of the spread between COMEX and dealers. The other day when COMEX was 1180 my accountant phoned and asked me how my gold was doing with an implied "gotchya" kind of tone. Great friend, but, he nearly shit his pants when i quoted him the price at my local dealer of 1355. COMEX is becoming increasingly irrelevant. they can create more volume and liquidity (at COMEX), just by shorting, with little or no regard for delivery of any type or expectation. COMEX may be falling like Wile E. Coyote, but physical is enduring mild corrections. Only if you believe a Volker style FED (everywhere) is in the making, does your projection of total liquidiation make any sense. sorry man. doesn't add up. can't have it both ways.
Nice job russwinter!
That is some cold he has... and apparently making dinner for the grandkids.
It is probably related to the terrible haze in Singapore where Jim lives. It impacts breathing, sinuses. I was just there and it seems like darn near everyone has red eyes, sniffling, like they have a cold.
Illegal (sic) Land clearing in Indonesian for oil palms and beef grazing. They cut the subsidy for gas and the result will not be healthy for anyone. This is becoming a really fucked up World as we become a virus upon the blue planet.
Hey I've got a great Idea..... how about we tax carbon based life forms a carbon tax... sort of a tax on life.. then turn it into a Emissions trading scheme run by Goldman Sucks. Trust me its a winner, every one uses Energy and farts. captive audience and when they die we can tax them on the gas used to burn them to ash.
Oh wait .... look over there..... Some young fellow called Edward Snowdon says we are all being monitored.. really? Whocuoldhaveknowed lining up for Digital recognition in an Apple store would have had "consequences". Digital number plate recognition ... really Im going to have to get a taxi to the whorehouse and double click is watching my porn preferences. ..... I think I'll have Digital relief in front of Skype.
The red eyes are from crying and the sinus from the drying effects of alcohol and drugs
Not everyone ... a few thousand corrupt souls are getting outrageously rich and powerful.
They will be the ones telling us how to repair what they broke too.
History repeats
Well there's my reason to buy tide singles in a 24 pack when my money comes in on the 1st.
The horror!
"Indian Custom Officials at Delhi's IGI Airport discovered a Sri Lankan man who had tried to smuggle gold into India by inserted 1.5 kilos (3.3 lbs) into his rectum."
I don't know about that Ferguson guy over at TF Metals, but this is a guy who truly earned the right to call himself "Turd".
The other jokes, if somewhat crude, are obvious......
That too will pass.
LOL. Golden PARACHUTE not gold UP-yer-chute.
when the printing stops, those holding physical assets, won't sell.....
OT ... btw Russia did not pull out of nor abandon its naval base in port of Tartus Syria and has no intensions of doing so. The Russian fleet just got back into the Med in a significant way and they are not about to run away from it:
--
I've also seen another report that Tartus has no deep water berthing for larger ships ... so it's certainly not a strategic port of call for their main battle fleet/s.
nah, not so dog, Tartus is a modern port that can service large cargo ships just like any other, just has a Russian naval base as well. Plus none of the Russian ships are especially large, nor even deep-draught. The largest ship in the entire Black Sea fleet, the capital-ship cruiser Moskova has operated from Tartus many times, along with its support fleet, destroyers, frigates, and amphibs. This port provides the fleet in the Med with everything the Russians require to operate there. It's been doing that in past decades with no problems. A port that can service the entire Med fleet and is the official port of the Russian Navy is most definitely a strategic port, and a major strategic naval asset in the region. Indeed, this port has even hosted the Russian navy's very biggest ship and its support fleet - the aircraft-carrier/cruiser Kuznetsov (draught = 11m or 36 ft). They've also sent their very largest Battle-Cruiser 'Peter the Great' to Tartus (draught 9.1m or 30 ft).
How much deeper do they need the port? They do know how dredging works if they need a deeper port. Syria is nearly land-locked so having a properly dredged deep port access would be pretty important to them I expect, and they would not skimp on engineering works to make that port at large and as deep as it needs to be.
http://en.wikipedia.org/wiki/Tartus_Naval_Base
http://en.wikipedia.org/wiki/RFS_Moskva
http://en.wikipedia.org/wiki/Russian_battlecruiser_Pyotr_Velikiy
http://en.wikipedia.org/wiki/Russian_aircraft_carrier_Admiral_Kuznetsov
They are not even thinking about leaving or down-scaling operations in Syria.
Thanks for the clarification. I must have been reading some disinformation on Debka! (though I'm sure I saw it quoted as coming from some deputy under assistant secretary in Moscow a few days ago).
No problem.
"This base is essential to us; it has been operating and will continue to operate."
- Commander-in-Chief Russian Navy, Vice-Admiral Viktor Chirkov
Ancient Chinese saying....
Dog with bone up arse not worry about reflection.
Confucius or Lao Tzu? tia
Regardless, shirley the correct translation would be something more like:
Dog wiff bone up rarse not wolly 'bout wee.freck.shun.
Actually, it's the market that's making them create more money.
Bernacke is the market, have you not looked at their balance sheets lately........
Maiden Lane I, II, and III keep rising so then he creates more
Re We're all GOING TO suffer...
Yo, Jimmah - sumvuss ALREADYsuffrin... suffrin' real bad bro'... can't even git 3-squares-a-day in Camp FEMA - dose folk just don't wanna clutter up their place wiff da likes of us...
Gwan.tanna.moh? Fuggedaboutit bro! Have you seen da wait to git into that sucker - even if you be on dat Prisssm watch list? Figger it must be that hellfy sub-tropical lifestyle everyones a hankerin' after...
Still waiting to hear if DHS haff any a/c accomodation available for the summer... dis freekin' heats just killin me bro!
Hey Jimbo- anything doing were you are ? Don't haff one o'dem fag Linkedin pages - but I can tell you I get on well wiff da Gooks & I'm good wiff ma hands - an' make a grandmama's recipe hooch (Confederate style ;) that is guaranteed to blow ya' sox clean off!! Lordie!!!
Send me a p/m here at z/h with what you got bro' - and I'll start brushin' up on that Hedge Fund sh!t so's I'm ready to go!
talk soon ;)
we here in marshmallow land have been living high. we do not produce our living by generating wealth through production of value. the con is about up then we will be living as the rest of then world does. and not the rest of the first world but the rest of the third world. foriegn people will own us and we will work for nothing the rest of our lives.
What is this money printing going to do to the price of gold?
I found this very intriguing chart on APF, comparing the gold price movement over the past few years to the famous 'typical bubble' pattern chart that we've all seen before.
One view says the gold bubble has already burst.
The other view says the gold bubble has just finished the bear trap phase and now prices will really take off!
Image: http://i187.photobucket.com/albums/x308/LPShadow/Gold_Bubble_Two_Views.jpg
Source: Gold is a classic bubble - it follows the typical pattern precisely. Goldbugs. The time to panic... is now.
What do you guys think is the more likely scenario?
Lol, I like the 2nd chart with 4 different graphs. Upper right. y-axis : moon :-) hehe
Wild Asian physical demand. More central bank manipulation on the paper price downward.
an easier question
the fed and other central banks have solved the problems and will no longer need to print
or
the fed and other central banks have not solved the problems and will continue to print and print some more and then print even more
an imploding investment bubble is like a high explosive.
if you have to ask if it was one, it wasn't.
The real result will be obvious.
Hope Jimmy is not leveraged. He is short stocks and long commodities up the ying yang. These pundits get indignant when the markets move against them. Tepper, Gross etc. Markets always fool the most amount of the people. Always...
Kuroda-san probably isn't "crazy".
Japanese QE is a calculated risk. A last throw of the dice, in a game that is all but lost.
http://nipponmarketblog.wordpress.com/2013/05/23/nikkei225-7-32/
No doubt, central banksters will continue to print until forced to stop.
Well Jim, if I can make my next billion dollars by investing in the ensuing devestation using $600 bucks of capital -- I'm with ya man!
Otherwise -- I don't give a hoot. That's your story, right?
When and if the shit actually hits the fan EVERYONE will be very fucked whether he owns hard assets or not.
The toilet flush at the 4 minute mark was worth the listening time. I almost snorted my coffee.
Keep in mind why this is bing done. Who owns "REAL ASSETS" not the average Joe. This is the bridge to get the 1% around the world to safety while the world's real wealth and jobs are shifted to Asia and the Emerging Markets. We are headed for the new "Fuedalism" shown by the new record for millionaires in the USA while most suffer. Get ready to learn how to say "Yes Massa"
gold, silver, tools, copper, medicines are real assets. They can be had cheaper than giant farms or villas in multiple countries.
I used to talk to Jimmy on the phone, he was always on a treadmill, I am not trying to defend him, but I doubt he was in the bathroom or getting a hummer, although that is funny.
it's good he stays in shape. I bet too many of us spend too much time trading, researching + our own (likely) desk jobs.
I actually pulled a rib muscle weeding a garden. Tore it. Normally that would never happen. Just getting too out of shape.
QE is unjust, but why is it insane? It's primarily a redistribution program from everyone to the very wealthy.
it causes civil wars & massive collapse in society, that's why it's insane.
See, like the "deal with the devil" moral stories and like the "Matrix" story of letting people have choice even at a subconscious level, people DO NOT RESIST, do not fight back, when an unfair deal is presented and chosen as CONSENTING.
They may even get mad but they don't burn shit down.
When they burn shit down because you're stealing their stuff with no choice, no consent, then everything falls apart.
The elites KNOW this yet still choose to steal rather than to be less greedy & settle for mere trickery with CHOICE on the table.
The serfs don't rise up when they blame themselves fully or partly for the damage done.
WE are going to suffer? C'mon Jim. You won't suffer for the rest of your life if you lived 500 years. I respect your opinions but please do not try to give us any of those Buffettesque ideas that you are one of the little people beholden to the fed when you are flying above the storms with your billions and can pick winning trades off at your own leisure. It is a bit insulting
you're missing the point. can't get past somebody who has done well, can you. not even a question, its an assertion.
I don't have a problem with how well he has done. I'm actually glad for him. I'd rather see the money in his hands than the majority of people out there in the world.
What I do have problem with is the folksy assertion that WE are going to suffer due to the fed's jerking us around. Do, pray tell, explain how it is he will suffer? Face it, HE WON'T! As a matter of fact, he might actually end up much better off because he has the resources to counteract anything the Fed does! All he has to do is sit in cash a few years and pick up all those depreciated assets for pennies on the dollar.
Where I come from, THAT ISN'T SUFFERING. That's winning. Good on him for it but spare us the patronization
which cash? Which currency? Jim doesn't know and he'll lose a lot of he bets wrong. And any cash? He's said quite some time cash is the big loser, tangible assets is what you want, what he wants. And if he's wrong short-term he may have a huge "cash loss" in value to sell in a pinch. As he's said, he's the worst market timer of all time.
maybe he's not as rich as you think.
When asked he's said he's not a billionaire, not anymore.
He probably spent many years spending what he had, enjoying life, plus re-investing cash so now it's not in cash-form and it is subject to confiscation if left in this or that jurisdiction. Everything is at risk. Even what's in your pocket is at risk if you can't defend it physically. He's old. He knows he can't. Maybe he's discounting some of that risk ahead of time seeing the state of the world.
I suppose I would.
Longballs wrote,
"They'll wait til the "news" tells them. Then they'll prepare....."
What are they "trusting" the govt to do?
The same thing they always "trust" it to do.
Steal what you have and give it to them .
you got that right.
While land is still taxed what you yield from it may not be, depending.
I don't think any time soon I'll be a farmer, despite what Jim recommends, but in the same direction I hope to get good results from gardening.
from the Mittleider gardening method I've seen incredible results on youtube & the book + micronutrient pack (think mineral supplements for plants) is cheap ($14), makes 2 years of fertilizer.
Of key note, as always, is the bees. If I could pull it off I'd want a hive or 2.