Jim Rogers Explains To Bob "Not a Cheerleader" Pisani Why He Is Short Stocks, Long Commodities, And Wants Europe To Fail

Tyler Durden's picture

Jim Rogers was on CNBC earlier, discussing the recent intervention by the SNB and the overnight plunge in Europe, in the process generating yet another amusing episode of market "non-cheerleader" Bob Pisani attempting spin the global economic collapse in a favorable light on not one, not two but on three separate occasions, and being soundly rejected by the far more, informed shall we say, Rogers. Specifically, to Pisani's repeated attempt to get Rogers to admit the uber-secret of which stocks he is long (CNBC Ponzi playbook 101), the former Quantumanite responds that not only is he not long anything, he is mostly short stocks and very much long commodities for two simpler reasons: "if the world economy gets better i'm going to make money in commodities because of shortages that are developing. Especially in agriculture and precious metals. If the world economy doesn't get better, Bob, you're not going to make any money in Toyota or IBM but you might make money in commodities because they're going to print more money. It's the wrong thing to do but they will print money. Bernanke is already printing money again. You have to protect yourself. I'm short stocks but i don't expect the world economy to get better. Not much better anyway, if it does and I am long commodities as a protection." And on some other topic like the Chairsatan, "Bernanke has been lying to us again", on the SNB intervention attempt: "This is a terrible mistake" and on what should happen to Europe: " It would be good for the world, though, if they let people go bankrupt."

Full clip:

Transcript:

Rogers: "I own some euros, I'll lose money if it happens. It would be good for the world, though, if they let people go bankrupt. My portfolio, I own commodities, especially precious metals and agriculture. I own some currencies. I'm short stocks in Europe and America and the emerging markets."

Pisani: You're long commodities but short stocks. explain how this fits in with the global growth story. Is there a global growth story and why are you long commodities -- wouldn't you still be long some commodities stocks, for example?

Rogers: No. well, I have some left over from 15 years ago. No, if the world economy gets better i'm going to make money in commodities because of shortages that are developing. Especially in agriculture and precious metals. If the world economy doesn't get better, Bob, you're not going to make any money in Toyota or IBM but you might make money in commodities because they're going to print more money. It's the wrong thing to do but they will print money. Bernanke is already printing money again. You have to protect yourself. I'm short stocks but i don't expect the world economy to get better. Not much better anyway, if it does and I am long commodities as a protection.

he's already -- you said bernanke is already printing money. has a new program been announces? that brings us to the u.s. dollar, of course, jim, which today is stronger against the euro. i would assume, though, that your long-term forecast for the dollar is not a particularly positive one.

On what currencies Rogers likes and why:

Rogers: Long-term forecast on the u.s. dollar is disaster, catastrophe. Having said that, as i said on cnbc several times in the past few months i'm long the u.s. dollar. The only reason i'm long is because everybody in the world has been terribly pessimistic. Whenever that happens you should take the other side of the trade. I'm long US. dollar. I have no confidence in it. It's going to be a disaster. But as you speak i probably owned more US dollars than many years.

Bob, (with attempt #2 to get Rogers to appear "bullish"): So you're bullish?

Rogers: Bob, to your point, Bernanke has been lying to us again. He announced in early august that he was going to keep interest rates at a very low rate for two years. Now, Bob, how is he going to do that? You can't just say the words. You have to go into the market and force interest rates down. Come on. What is this, you believe in the tooth fairy? He's in there. That's the only way he can do it. If you don't believe the theory of monetary policy works, get out the unadjusted numbers since the beginning of august and you will see they shot up starting at the beginning of august as soon as he said we're going keep interest rates down. So he's in the market. He may be lying to us, they usually do, But he's in there. Be prepared.

On whether the SNB intevention will work.

Rogers: No, of course it's not. No central bank in the world has ever been able to control its currency in the long run. Many countries have tried, but the market always has more. The british tried it 15 or 20 years ago. Everybody has tried it. In the end the market has more money. The swiss will have two things happen. One, they will drive their currency down so much that they will no longer be a financial center, or it will go up again and they will lose money on all the currencies they're buying. This is a terrible mistake. The way you sort things out is you let the market take its course, the cure for high prices is high prices. That's how you sort things out.

And attempt number 3 by Pisani to present global economic reality as "better than expected" results in yet another epic failure:

Pisani: Jim, give us a couple of thoughts. China came out with their inflation numbers this morning. Appeared to be a little bit under control. chinese will probably not be hiking interest rates any time soon. gdp not as strong as it was maybe a year ago. but still looking pretty good. what's your thoughts here?

Rogers: China is trying to slow its economy down. They've raised interest rates six times. I wish america raised its rates six times. They raised reserve requirements 12 times. They're trying to slow things down. India the same way. Many countries acknowledge inflation and trying to slow things down. That's why i'm not so optimistic about the economy going forward.

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sqz's picture

"It would be good for the world, though, if they let people go bankrupt."

- classic :)

Pladizow's picture

There is nothing any government can do to prevent the ultimate paper ponzi collapse.

Everything they do simply delays it and makes it worse.

So - buy gold & Silver.

redpill's picture

Pissanti is just trying (and failing) to make sense of the world when viewed through his permanently affixed momo-rose colored glasses. Not surprisingly, he thus finds it difficult to understand the actions of an awakened realist like Rogers.

spiral_eyes's picture

Undoubtedly, policy makers will be looking to stabilise the market. This is absolutely the most anti-capitalist thing imaginable: for capitalism to work, good ideas must be rewarded, and bad ideas, risky and fragile systems must break. For far too long bad decisions, bad management and dangerous corporate behaviour has been rewarded with taxpayer bailouts, crony capitalism, and subsidies. And quite simply, until those practices are rewarded with utter abject failure we are totally fucked.


http://azizonomics.com/2011/09/09/is-greece-about-to-default/

Herd Redirection Committee's picture

Intervention just makes the mess bigger when it does happen.  Its nature's basic response to persistent denial.

Check out the latest from the CRI "BiMetallic Standard, FAQ":

http://www.capitalresearchinstitute.org

FEDbuster's picture

Loved the look on Pisani and Faber's faces when Rogers said "Bernanke is lying, he is in the market.  He has lied before".  Steve Liesman may have crapped his pants, if he was watching that exchange.  The Bernak lies, blasphemy.

Marco's picture

Those behaviours have been rewarded with utter abject success already. If it collapses now they will still have won. TPTB own a lot of paper which will lose value in the collapse, but they also converted vast amounts of that paper into commodities, real estate, non luxury producing companies, gold etc. etc. etc.

 

Just because they created debt to facilitate theft doesn't mean they are completely dependent on it to retain wealth ... they are only dependent on it to keep stealing.

TheGameIsRigged's picture

Ahhhhh, good ol "Pom Pom" Pisani....the biggest clown out there.  Has he ever said ANYTHING bad about the market?  Ever?  He should be fired.

Fish Gone Bad's picture

Pisani is not the biggest clown, that title would belong to Cramer.  And not just a Bozo type clown, but a Shakes-the-clown.  Throw in some Maria B as well.  Did she get a new makeup gun?

FEDbuster's picture

Shakes the Clown, an all time classic movie.  Time to re-watch that one.  Cramer is more like Binky though.

http://www.youtube.com/watch?v=amF5cRjruwk

Bam_Man's picture

She borrowed Lilly Munster's.

RSloane's picture

He's getting paid to be a moron. For him, its big bucks for what comes naturally.

Landrew's picture

He isn't man enough to be a homo!

kumquatsunite's picture

I'm not much for the Jim Rogers "it's all going to hell" view of the world. We still have the greatest nation in the world, amazing land that yields a bounty of fruits and vegetables and beef and such, ad infinitum. Further, especially on this day of 9/11, the single best way to defeat any terrorism is to build America back up and instill, once again, the values that made this country great. Hard work and perserverance. Rogers is just manipulating the markets via appearance on CNBC; really, doesn't CNBC try to find "new faces" rather than constantly going to Jim Rogers and the mad "doomer and gloomer" (what IS that guys name with the thick accent who lives overseas?). Alternatively, Mohammed El-Erian seems to be trying to work this through...any way the point here is stop acting like a bunch of pansies and get to the job of making work again. Time to stop acting like the world has ended; I have a grandchild on the way so that talk really pisses me off. 

DoChenRollingBearing's picture

+ $1860 and green

Buying gold and silver is the best way to protect our assets.

There is no way out of the box.  .gov cannot do it, we as individuals can do little.  We can buy gold though.

JW n FL's picture

 

 

non-toxic ammo can save your life as well you are supporting your purchase of commodities! (in some cases)

FEDbuster's picture

Most ammo prices are up 150% over the past 10 years, it stores well and is recognized around the world.  "Brass and lead, the other precious metals".

Snidley Whipsnae's picture

Gotta love this... Rogers: "Long-term forecast on the u.s. dollar is disaster, catastrophe. Having said that, as i said on cnbc several times in the past few months i'm long the u.s. dollar. The only reason i'm long is because everybody in the world has been terribly pessimistic. Whenever that happens you should take the other side of the trade. I'm long US. dollar. I have no confidence in it. It's going to be a disaster."

Rogers is sharp. He is saying 'dollars in the short run'... and, with the Euro currency on the verge of a big fall, if not collapse, Rogers will make money on dollars...

But, Rogers knows that dollars are 'a disaster' for the long haul. Rogers points out that M2 has taken off after Bens last speech...as Rogers says... Ben is 'lying to us and he's printing now'... got gold? 

WonderDawg's picture

So you did watch the video clip.

frobn's picture

"Long-term forecast on the u.s. dollar is disaster, catastrophe."

Long term forecast for all fiat currencies is disaster. Better hope the dollar goes last, without it its the end of world trade and our consumer life style as we know it. I have some PMs but I an not so sure about gold being as safe bet as most here seem to believe. If all you have is ounce of gold what are you going to do when you need to buy a loaf of bread?" Don't forget whatever government is in place when the dollar crashes will be able to tax gold or levy a high transaction fee when you try to redeem it for whatever it's worth in the new currency.

kumquatsunite's picture

Bernanke is just building the bridge from "yesterday's mess" to tomorrow's success. Rogers is such a jerk...can't stand the guy. Bernanke will be seen in the future as the guy who saved the world. As to downgrading the dollar, Voila! This is simply a result of all the irresponsibility of (especially) the last decade, so don't blame Bernanke for doing what has to be done to keep the wheels spinning until the new new can be implemented. The dollars is just a contract of agreement regarding what things are worth anyway; just as gold or silver is a contract of agreement as to what things are worth. And if you knew what I think of gold (and its future) you wouldn't be so interested in it...just saying.

prains's picture

Cheney must be hero of yours as well

centerline's picture

actually, they are...

Just that it is everybody, all at once!

ebworthen's picture

Agreed.

However, the only people allowed to go bankrupt in the new ponzi kleptoligarchies are families; they are being pushed to bankruptcy for the sake of banks, insurers, and the governments that supposedly represent their interests.

Oracle of Kypseli's picture

Bunkruptcy is a good thing in an strange way. It's a catharsis for making mistakes and starting over and thank god it is available. Long time ago, you would be a debt slave for the rest of your life. In Spain, a house mortgage can not be dismissed by bankruptcy. The people who have defaulted immigrate in other countries and start over.

Student loans are now recourse loans and are exempt from bakruptcy. Thanks to Obama

Snidley Whipsnae's picture

Oracle... Lest we not forget debtors prisons? England had no qualms about throwing the 'gentry' into prison when they borrowed more than they could repay.

It is only the modern 'gentry' of banksters commiting outright fraud and theft that avoid all sanctions...So far.

The US needs to hire a real smart, bull dog attorney general and turn him/her loose... Someone like Pecora.

blunderdog's picture

Student loans have been exempt from bankruptcy for a long time--way before Obama.  I thought it was Clinton did that.

 

eureka's picture

By "people" Rogers meant ANYONE who has made a bad investment - I.E. NOT "Europe" in particular as Tyler's STUPID headline not just implies but claims, but rather ALL banks, bond holders etc - ANYONE who bought crap or lent fiat to entities who clearly can't pay back.

THAT's what Rogers said.

eureka's picture

Rogers does not want Europe to fail. KNUCKLEHEAD, whoever you are who wrote that headline.

Rogers further said: "THE MOMENT GREECE DEFAULTS AND LEAVES THE EURO - I'M BUYING EUROS. WHEN GREECE OR ANY OF THE OTHER WEAK COUNTIRES LEAVE THE EUR THE EUR WILL BE STRONG AND I WILL BE LONG THE EURO."

Don't put stupid words in Roger's mouth - don't slam EUR - that's just pathetc US hegemon garbage talk.

AND - extremely BAD JOURNALISM.

NOW, ADMIT IT. Thank You.

RSloane's picture

He envisions another EU rising out of the ashes and at that time he will buy the EURO. In that respect he does not want the EU to fail and just lay there in the ruins. He wants it to get up, reform, and walk the talk. I agree with you to the extent that Rogers does not want the EU to die and go away, he wants a reformed, new, improved, better cleaning action EU.

Léonard's picture

Thank you Eureka for pointing that out.

I'm a bit disappointed by Zero Hedge. I love you guys, you're doing a fantastic job but you really mislead ZH's readers here.

Greece's default doesn't mean the end of Europe and the end of the Euro will not mean the end of the European unity and the end of the European economy.

I know you Anglo-americans don't want it and are doing everything to hide the end of your empire, but in fact, China and Russia strongly believe in the Euro, in Europe, and are dumping the dollar and the USA.

You gotta be used to it. You can't f*** indefinitely the world and expect to stay at the top. You had your time. You made a lot of money during the last 60 years but now the wheel is turning. Europe and the world don't want to be your vassals anymore.

kumquatsunite's picture

So disagree with you: Russia desperately wants/needs the US to be strong: we are their foil to China. Russia knows that without the US, they would be taken over by China and it would just be one giant Chinese world...China is in the deep dodo know; when you take millions upon millions of people off the land and put them in factories, and then those factories begin shutting down as their is less exporting, where do those people now go? China has one of the greatest messes in history developing right now. As a "shopper", I can tell you that their are many items in the stores that used to be there, that are no longer there. Limited selection is the new new. Time to get those factories built in America and I am betting that this country becomes bigger, stronger, better and a leader to the world as never seen before. My middle name is Jingoistic.

prains's picture

You mean your middle name is actually sheeple

max2205's picture

Another false statement from Denninger: Germany's DAX market relative to the United States just hit a five year low today.

 

Ah ummmm I think it might be 2 or 3

 

edit: missed the relative thingy...have to check...buy spy short dax-winner winner chicken dinner

MarketTruth's picture

Easy solution, avoid him/his site. Waste of time reading that market cheerleader who still believes in the system. Plus he needs to call his paid membership GOLDman Sachs.

www.youtube.com/watch?v=WCwWfSYBwOQ&feature=player_detailpage

Long ago he was ok, now he is a laughing stock of many online professionals.

WonderDawg's picture

Still believes in the system? He's been calling for prosecution of the financial criminals for years.

Don't get me wrong, I doubt I'd want to hang out with the guy, he can be a dick, but he's trying to shine some light on the fraud in the financial system and for that I respect him.

Crisismode's picture

He is a fool;

 

And you are a fool for believing in him.

WonderDawg's picture

You're a bit of a cunt, eh?

Did I say I believed in him? No. I said I respect him for trying to shine a light on the fraud being perpetrated on our country. If you have a problem with that, you can go fuck yourself.

Stax Edwards's picture

We are working the same page of the playbook

CClarity's picture

Good bigger picture view by  Rogers.  By the end of next week Greece may not be the word on everyone's lips.  It'll be the financial system again.  And slow growth or receding economies.  That is what people should be investing and/or trading toward.  Rogers decisions in this climate are sound.

fuu's picture

Aaand S&P pops over 1150 in the last 13 minutes of the day.

HelluvaEngineer's picture

damn end of day short covering

TwelfthVulture's picture

Every thing is fixed now.

DoChenRollingBearing's picture

Yet another reason to buy and hold physical gold.

Bam_Man's picture

That statement can have two very different meanings, only one of which is actually true.

hooligan2009's picture

off topic..slightly ...but i wish pissantani would have asked jim to comment on how successful america can be when governement worker are paid more than private sector workers..

Private industry employers spent an average of $28.13 per hour worked for employee compensation in June 2011, the U.S. Bureau of Labor Statistics reported today. Wages and salaries averaged $19.81 per hour worked and accounted for 70.4 percent of these costs, while benefits averaged $8.32 and accounted for the remaining 29.6 percent. Total compensation costs for state and local government workers averaged $40.40 per hour worked in June 2011

from here: http://www.bls.gov/news.release/ecec.nr0.htm

NotApplicable's picture

As long as there is fresh fuel for the Ponzi...