Jim Rogers Blasts "Abolish The Fed" Before It Self-Destructs

Tyler Durden's picture

"The world has consumed more than it produced for more than a decade," Jim Rogers explains to BoomBust's Erin Ade; but his comments to the leather mini-skirted anchor with regard the actions of the world's central banks bear the most attention. "The world is floating on an artificial ocean of printed money," he blasts, adding that while it's going on "everyone's happy," but at the first sign of it slowing, he warns, "we will all dry up."

Rogers sees gold as a crucial holding in this respect but believes there will be a better price to buy more, as he reflects on the suppressive actions of the Indian government.

This excellent far-reaching interview covers everything from gold standards to China's 3rd Plenum "I much prefer the Chinese system of open markets than the US with the government dictating everything" and from Bitcoin to a barbaric destruction of the Fed and all it stands for, "the Fed will self-destruct, before the polticians realize what is going on."

 

Erin Ade... (you're welcome - is it any wonder Maria B quit?) asks every question we need answered...

 

interviews a worried Jim Rogers...

 

4:30 Agriculture/Farmland - bullish sugar and farmland - "The world has consumed more than it produced for more than a decade," and inventories are near record lows

6:25 Central Banks - "for the first time in history, all central banks are printing money... The world is floating on an artificial ocean of printed money,"

7:15 Gold - "I am not selling any of my gold, but believe there will better prices to buy... the Indian government is actually trying to make its people sell their gold."

8:45 Gold Standard - "it might work for a while but eventually the politicians will cheat that too"... "people wil be desperate in the next decade to try anything - maybe it will be bitcoins"

9:40 Bitcoin - there are many more important things in the world than worrying about bitcoins

10:15 China's Plenum - "the Chinese are becoming more and more capitalist"... they are becoming more and more market focused... as opposed to the US where when there is a problem "the government decides how to fix it... look at Obamacare" - "the government says "we will figure out the solution"... "I much prefer the Chinese system of open markets than the US with the government dictating everything"

15:20 The Fed - "The way the world has worked for a few thousand years is - that when people get into trouble, they fail; competent people come along, reorganize the assets and start over..." In America, he chides, "they decided to let incompetent people take over the assets from competent people and compete with the competent people." - The Japanese tried this in the 90s and it failed for 2 lost decades.

"In America, they are kicking the can down the road, and when the can finally goes over the side, we are all going to go with it."

"We've had 50-60 years of excess in America, you've got to pay the price some day whether you like it or not... the longer they delay the day of reckoning the worse it will be."

17:40 Abolish The Fed - "the world has gotten along very well for most of history without central banks."

"we would be better of with no central bank, than this central bank"

19:00 Stocks - "we are certainly gonna have a crash some day" - "as long as they keep printing money, and no restraints on congressional spending, this bubble could go on forever"

 

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Wyatt Junker's picture

and Jim Rogers... jizzed in his pants.

and thus it was referred to as the act of 'rogering' ever since.

ZerOhead's picture

"the Fed will self-destruct, before the polticians realize what is going on."

All we can do is pray... and buy lots gold and silver to make this dream become a reality...

fonestar's picture

What a picture!  It looks like Jim is trying to abolish his dentures before the Fed.

James_Cole's picture

"The world has consumed more than it produced for more than a decade," Jim Rogers

Paradox aside, the opposite is the problem. Over-production and over-capacity are killing the economy right now, making the environment unliveable for humans too.

Need to consume and produce less, simple as that.

Papasmurf's picture

The problem is a few have way too much which they obtained by taking from those who don't have enough to get by.

DaddyO's picture

So redistribution is justified?

And how much is way too much?

Somewhere I read that you could evenly distribute all the worlds goods and money and within a few short months there would be inequities again.

The poor will always be with us...

DaddyO

CH1's picture

So long as there is a system that can rob and punish everyone at once, the suffering will continue.

Victorio's picture

Yup.  I'll take fair markets and freedom from government/corporate theft and you can keep the redistribution. I don't need a handout, just a level playing field.

Seer's picture

I agree with the sentiment.  However...

That which could be "redistributed" is highly laden with POWER.  Those that have amassed the bulk of control of the world will continue to use that power to ensure that they exist ABOVE that "level playing field."

It's a big Catch-22.  You cannot truly level the playing field without redistributing: what, GS and the other robber baron entities can keep all that they have?  And one cannot have a level playing field by manipulating it- engaging in redistribution activities.

One day it'll be simplified.  You get to keep what you can hold on to.

Anusocracy's picture

The elites need government to continue their control and the dupes keep providing it.

Stupid, stupid, people.

Creepy Lurker's picture

"One day it'll be simplified.  You get to keep what you can hold on to."

 

You keep what you kill. It's the Necromonger way.

Keyser's picture

The floggings will continue until morale improves. 

Fredo Corleone's picture

In time, Jim will be proven correct; in the interim, however, taking the other side of the $85 billion monthly trade against the Fed is an excercise in futility.

In that context, let us change the focus of the discussion to Erin Ade...

https://lh5.googleusercontent.com/-6tPW_9rKEzQ/UWZgl3W3d1I/AAAAAAAAAI8/5...

DCFusor's picture

Looks like Dianna Krall, except Dianna has real talent.

ebworthen's picture

Jim Rogers says:  "I'm long sugar, Sugar."

kraschenbern's picture

It's not a paradox until the granary becomes empty.  Need to consume less, produce more.

James_Cole's picture

I commented before watching the interview and didn't realize he was talking about agriculture. Either way, people are not consuming more than is being produced, the spoils are being handed out very disproportionately is all.

There are also hard limits on production beyond human control, people all hype the 'miracle' of genetically engineered crops, but truth is it's been a gigantic failure so far. Not to mention deteriorating environmental conditions worldwide.

Very good chances there will be a ongoing fall in food production (fisheries anyone?) so producing more (outside of some science miracle) might be out of the question entirely.

The pentagon has already written a few papers about this inevitability.

Seer's picture

"people are not consuming more than is being produced"

Yes and no...

It's an issue of relying on production from prior years  "Surplus," as in grain crops, is meant as a buffer for the eventual crop failures; it is, then, insurance for the future.  By drawing down on those reserves we place the future in peril.  One could view this as being fairly synonymous with oil, except that we cannot really produce more oil like we can grain (well, there's biofuels and all, but...).

The US cattle industry is bracing for another tick down for 2014.  It's the economies of scale reversing issue... at the height of it all hides were a HUGE boost to income, hides that got turned into leather seats in "luxury" autos/trucks...  The irony now is that the cattle industry needs people to be buying less such vehicles in order that that "disposible" income (no longer such) can be applied to the purchase of beef.

The corporate food industry has peaked.  Like everything, one can take away both good and bad things from such.  I look at these kinds of things and ask what "I" ought to be doing to provide some sort of balance- my answer is to take up farming... (and I have no illusions that I can stop, let alone stall, the coming storm, no more than spitting into the winds of an on-coming storm front would have any affect on changing its course)

thestarl's picture

Hey JC take down here in Oz for example.The New England Plains in central NSW,some of the most fertile agricultural land in the country a big food bowl basically.Now they want to frack and longwall mine energy coal under the place.Are they fucking insane you bet.Myself i work in the mining industry but this place i repeat should be left alone as just to big a risk to aquifiers.

 

Squid-puppets a-go-go's picture

agreed

entire docklands full of unsold stuff the world around. for mine, this is all caused by interference in currencies: america using its millitary to prevent the dollar losing value, china pegging underneath the $US. This is a key factor in the oligarchy preventing the deflation that would help restore balance

but noooooooooo, every dickhead govt in the world has to connive to prevent the deflation

god forbid the workers should earn wages at levels that enable them to actually buy the shit they make

Seer's picture

Sicne govts generally are paid for by corporations I'm not seeing them, govts, stepping aside anytime soon.

"god forbid the workers should earn wages at levels that enable them to actually buy the shit they make"

You mean that if I worked at Boeing my wages should be such that I could buy a 737? (only partial sarc)

starfcker's picture

james cole, you are absolutely right, and jim rogers is exactly wrong. overproduction is the symptom of the real problem. the problem is means. how do people afford to buy what is produced. worldwide EBT can only last so long. decentralization is the answer, no amount of kicking and screaming can change that. broad money, not monopoly. 

Seer's picture

I didn't down-arrow you...

"decentralization is the answer"

What's the question?

I fully agree that "decentralization" WILL occur, but believe that it will do so in response to the issues of declining resources; "decentralization" will not, however, stop the decline in resources, in which case we'll still be faced with the BIG questions...

starfcker's picture

the question should be, "how do we get the american economy rolling again so that the most people prosper." instead, the question seems to be, "how can we buy time to come up with a new plan that keeps the public passive while we figure out how to keep our monopolies intact while we figure out a profitable way to sell stuff to people around the world with no money." i've been impressed with the people running the show and their ability to improvise and keep the plates spinning, but at the end ot the day, the real problem knows no answer. all peoples aren't the same, in wants or abilities. dumbing us down is not going to solve the central problem. how do we pay for all this? printing has worked so far, but long term?

Anusocracy's picture

Government creates conditions that destroy businesses and jobs, hence you have a surplus of workers and lower pay.

Throw in the cost of government, and its overpriced anti-productive workers, and you'll have no problem destroying the livelihoods of tens of millions.

starfcker's picture

the question should be, "how do we get the american economy rolling again so that the most people prosper." instead, the question seems to be, "how can we buy time to come up with a new plan that keeps the public passive while we figure out how to keep our monopolies intact while we figure out a profitable way to sell stuff to people around the world with no money." i've been impressed with the people running the show and their ability to improvise and keep the plates spinning, but at the end ot the day, the real problem knows no answer. all peoples aren't the same, in wants or abilities. dumbing us down is not going to solve the central problem. how do we pay for all this? printing has worked so far, but long term?

starfcker's picture

the question should be, "how do we get the american economy rolling again so that the most people prosper." instead, the question seems to be, "how can we buy time to come up with a new plan that keeps the public passive while we figure out how to keep our monopolies intact while we figure out a profitable way to sell stuff to people around the world with no money." i've been impressed with the people running the show and their ability to improvise and keep the plates spinning, but at the end ot the day, the real problem knows no answer. all peoples aren't the same, in wants or abilities. dumbing us down is not going to solve the central problem. how do we pay for all this? printing has worked so far, but long term?

starfcker's picture

the question should be, "how do we get the american economy rolling again so that the most people prosper." instead, the question seems to be, "how can we buy time to come up with a new plan that keeps the public passive while we figure out how to keep our monopolies intact while we figure out a profitable way to sell stuff to people around the world with no money." i've been impressed with the people running the show and their ability to improvise and keep the plates spinning, but at the end ot the day, the real problem knows no answer. all peoples aren't the same, in wants or abilities. dumbing us down is not going to solve the central problem. how do we pay for all this? printing has worked so far, but long term?

starfcker's picture

anybody know how to delete multiposts. i'm ten miles offshore on a rainy night, don't know why that happened or how to fix it

Son of Captain Nemo's picture

Good summary of where we are and where we are "going".

My take on what you just described especially "buying time to come up with a new plan that keeps the public passive while we figure out how to keep our monopolies intact... while attempting to stay profitable with no money"?...This is all of it in a nutshell. 

It' "is" and has been the codebook for our devised destruction, pure and simple.  Some may disagree with that, but I believe the questioning Ollie North received in the 80's during the Iran Contra scandal when the Sentor from Texas asked him about 'Rex 84' is a glimpse of what they had planned for this Country that long ago and most probably before.

They knew what was going to happen to this economy back then, and the direction the Corporations were headed with the American workforce which was being systematically downsized and phased out because we were no longer a labor force that was deemed cost competitive with Asia, Latin America and Eastern Europe. How long have the H1B1 floodgates and unlimited immigration policies been with us in just about every State?

We are seeing the end run which has been sustained over the last two decades with no lawmakers in Washington who in my mind have any inclination to change the direction. 

I think the only real teacher that we had left was Ron Paul.  He tried to warn us about what was coming But not enough in this Country were engaged or willing to learn from his message and the truth he was speaking.

Libertarian777's picture

while your first sentence is spot on (the paradox), i have to say, where have i heard the latter sentence before?

 

you're implying progress is in the way of progress. We should go back to subsistence farming, at least everyone had a job then? well please stop using your computer/tablet/phone manufactured in highly efficient production facilities, stop using electricity to power said phone, stop driving a vehicle other than one made by hand, THEN come back here and tell us to stop over-producing.

The problem is not 'overproducing', it's 'overproducing the wrong goods', being incentivised by the misallocation of capital due to central banking / government policies.

Seer's picture

Well...

That which cannot continue forever won't.

It's easy enough to make the statement that the "problem" has to do with "overproducing the wrong goods," but one then would be inclined to state an example of what the "correct goods" would be.  Yeah, let the "market" figure it out.  I agree, however, at this stage of the game with all that's at stake (all the imbedded power, the control over all the existing infrastructure) I'm not seeing us all "letting go of the shore."

If we do not find some break-through new energy-source it's a certainty that MOST of what we now see could be classified as being the result of "misallocation."  It's a pretty common theme with civilizations that they tend to not question their underlying premises until it's too late.

Creepy Lurker's picture

I believe you have just inadvertently stated what the "correct goods" should be. Research and development.

This dumbing down of the world population will eventually be the undoing of those who propagate it.

Debugas's picture

Facts:

people were spending (and still are) more money than they earn (it is possible because of crediting).

people consume exactly as much as they produce

idling capacity to produce is almost everywhere

King_of_simpletons's picture

Federal Reserve Bank is NEVER going to be ABOLISHED.

These just make good rallyng sound bites for the fanatic.

TeamDepends's picture

Never say never!  Only 3-5% of the population started the revolt against King George.  Expect twice that amount to say F U to the IRS come April 15th.  And once the brave stand up, the cowards will rise up behind them.  (did not junk you)

Drifter's picture

I'll say never.  There won't be another armed revolt in America.  Civil war was the last one.

Anusocracy's picture

Two hundred years of importing government lovers will do that.

JR's picture

The route to abolishing the Fed is through the Congress…because it unconstitutionally created it.

John E. McManus in Financial Terrorism: Hijacking America Under the Threat of Bankruptcy explains:

“By its action in 1913, Congress actually put an official stamp of approval on the replacement of the Constitution as the definer of our nation’s monetary policy. The creation of the Fed not only set the stage for the grand theft of the American people’s property, it is leading toward a grand theft of the American system of limited government and personal freedom.

“Karl Marx would have loved the Fed. “The ‘unseen guardian angel’ of the Fed, Edward Mandell House, wrote in his 1912 book, Philip Dru: Administrator, that he wanted ‘Socialism as dreamed of by Karl Marx.’ The goal of House, Marx, and their modern-day followers in the CFR, TC, and other elitist organizations are being realized.

“All American should be outraged at what a few power-hungry individuals have done to our nation and themselves. The Fed must be abolished, but knowing how we got into its grasp is important.”

That’s where ZH comes in…

nmewn's picture

"Centralization of credit in the hands of the state, by means of a national bank with state capital and an exclusive monopoly."

Plank number five.

Seer's picture

Rogers said that it wouldn't get abolished (he only says that if HE were in charge that that's what HE'd do).  What he said was that the Fed would collapse and take all the politicians by surprise.  Personally, I don't think that the politicians are going to be surprised, though I do believe that the Fed is going to collapse: my hypothesis has been that the Fed is going to such up whatever it can in the way of bad assets and collapse- it's really the strategy from the start, only they could never come out and say it; all those associated/linked will be assured a place at the new table, though they may have to wait to be seated for a while until the storm blows over.

Silver_K-9's picture

And maybe a little Brass and Lead...

ZerOhead's picture

Don't get sloppy and forget to finish the job off properly... you know... with the necessary oak stakes to be driven through their cold cash-infused hearts...

SRSrocco's picture

The Fed will probably go down the road of SELF-DESTRUCTION because there is no way it will allow itself to be abolished.  Once Yellen takes over the reign of the FED, this notion of TAPER will finally be thrown out the window right along with the exit of Ben Bernanke.

As I have stated several times, the FED can print and monetize currency... but they can't print barrels of oil, gold or silver.  That is why owning gold and silver will be one of the safest assets to hold when the U.S.S. Fed Titanic finally sinks:

CRITICAL FACTOR: The Real Reason To Own Gold

http://srsroccoreport.com/critical-the-real-reason-to-own-gold/critical-...

dryam's picture

In the Iran deal yesterday one thing Iran agreed to was to not sell oil for gold.  We all know the PM market is probably the most manipulated market.  This piece of Iran news cements in my mind the fact that gold will be manipulated to the bitter end, and I highly doubt the Fed will "lose control" as long as the U.S. has a dominant military.  Also, the U.S., Japan, Europe, Canada, Australia and the UK are all working together in this charade.  Owning much more than 10-15% of own's total assets in PM's makes no sense whatsoever at this point in time.

Son of Captain Nemo's picture

"This piece of Iran news cements in my mind the fact that gold will be manipulated to the bitter end, and I highly doubt the Fed will "lose control" as long as the U.S. has a dominant military."...

On the price of gold continuing to be manipulated I couldn't agree more for all of the obvious reasons, but you lost me on the part about the Fed "not losing control" as long as the U.S. military continues to threaten anyone and everyone that doesn't keep USD's Reserve status intact.

Just how does the U.S. military continue doing that with more than 750 military bases Worldwide and sustain it's dominant naval presence through increasing it's foreign debt obligations after decades of continuous spending and now more recently 12 years of multiple unsuccessful wars with no end in sight?

I see the opposite.  It's unsustainable and has been for more than 10 years and it will be ending very shortly.

Seer's picture

Glad to see that your view is accepted here (vs. when you'd submitted an article the other day- ZH folks can be quite fickle).

I know that it's convenient to view all these folks as being stupid, but as I'd stated in the past, if THEY are stupid then what does that make everyone else (who is subjugated to them)?  No, they are NOT stupid.  They've managed to prop things up and to reduce foreign exposure to our debt.  I do not believe that this is their game plan; I just believe that it's part of the trajectory/plan.  They HAVE to know/realize that it is certain that there will be some sort of restructuring.  Their actions have been to arrive at that point in the best position possible.  I believe that the restructuring will have to be so big/significant that it's highly unlikely that the Fed as we now know it would continue to operate post restructing- I've suggested that the Fed is actually working with this in mind.  Eventually the bankers take one for the team: if not then it's going to be the end of them and any hopes that they could have of rebuilding their positions.

"they can't print barrels of oil, gold or silver."  Or food... And this, my friends, is WHY the future signals its end.

Regarding your article, PMs are primarily the play for when you do not have the ability to apply "surplus" capital toward some wealth-generating endeavor.  That is, if you can INCREASE wealth then do it; if not, then the mode should be that of wealth preservation.

logicalman's picture

Silver bullets for the vampire banksters.