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Jim Rogers: "The US Has Already Lost Its AAA Status...I Am Short The US Bond Market As We Speak"

Tyler Durden's picture




 

While there is nothing new in the just released Jim Rogers interview with the WSJ, it is always refreshing to hear him tell the truth, which is, of course that "the US has already lost its AAA status. Who cares what Moody's say." As for the response: "The market looks ahead: this is not the first time that the market has dealt with the fact that the US is bankrupt." As for his proclivity to buy long term US debt: "I wouldn't lend money to the US in US dollars for 30 years at 3%, or 4%, or 5% or you name the interest rate.... I shorted it June 10. I am short the US bond market as we speak." Great stuff as usual.

 

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Mon, 07/25/2011 - 09:40 | 1490258 caerus
caerus's picture

my man...

Mon, 07/25/2011 - 10:15 | 1490331 redpill
redpill's picture

Might finally be time to pull the trigger on some TBT this AM.

 

Mon, 07/25/2011 - 11:20 | 1490566 Pladizow
Pladizow's picture

Better Yet: TMV

Mon, 07/25/2011 - 12:11 | 1490763 gmrpeabody
gmrpeabody's picture

HURRAY!!!

So much for policing pictures.

Mon, 07/25/2011 - 12:29 | 1490837 caerus
caerus's picture

Check out TBX...someone sure liked it on 7/14...

Mon, 07/25/2011 - 14:03 | 1491198 Setarcos
Setarcos's picture

Not quite sure what you mean caerus, but I do know that Cantor (and no doubt others) have shorted bonds.

He and his ilk actually want a crash, so as to make a fortune out of others' misery.

Self-interest rules, OK.

Mon, 07/25/2011 - 15:40 | 1491649 IQ 145
IQ 145's picture

Natural gas in Chicago; hmm. A chainsaw. He's gonna be hard to convince, apparently.

Mon, 07/25/2011 - 09:41 | 1490262 Mongo
Mongo's picture

That means gold will fall... BTFD (Gold of course)

Mon, 07/25/2011 - 09:44 | 1490271 GetZeeGold
GetZeeGold's picture

 

Little late to BTFD.......EPIC FAIL.

 

Mon, 07/25/2011 - 09:46 | 1490279 Mongo
Mongo's picture

Late? You aint seen nothing yet.

Mon, 07/25/2011 - 10:28 | 1490372 Long-John-Silver
Long-John-Silver's picture

I remember people commenting that the price of Gold was too high when it was $300 an ounce.

Eventually the Gold to US Dollar ratio will hit infinity just like the ZIM Dollar.

Mon, 07/25/2011 - 09:42 | 1490264 rajat_bhatia
rajat_bhatia's picture

Ani I was short Gold earlier, Now i'm Long Gold and Silver

Mon, 07/25/2011 - 10:10 | 1490295 Overflow-admin
Overflow-admin's picture

How painful was to get out of your shorts? Seems that they were full of ****. (Reminds me someone shorting 1275 between sep-nov. LMAO)

 

Update: Gold @ 1614.2 -> ROTF

Mon, 07/25/2011 - 09:58 | 1490300 A Man without Q...
A Man without Qualities's picture

If I ask you nicely, will you fuck off?

 

 

Mon, 07/25/2011 - 11:43 | 1490658 equity_momo
equity_momo's picture

No no no , dont tell him to fuck off , hes the new RoboTroll : great to have around to boost ones self-esteem.  When i realize there are asshats out there like these two it gives me comfort that i might last longer in the sheering process than i thought. You dont need to be the fastest Wildebeast afterall , just so long as you outrun the slowest.

Where would gold investors be without these cretins? With a much higher average in price.

Thanks to these chumps my ave is 500 pts lower than it would have been.

Mon, 07/25/2011 - 10:06 | 1490314 fuu
fuu's picture

No one:

A) Really believes those are your positions

B) Cares if they are 

C) Takes you seriously after calling short gold/long Indian Government debt after claiming you chose this position based on your belief that American politicians would do the right thing

D) Can mod your comments below the threshold of visibility

Mon, 07/25/2011 - 10:11 | 1490326 Overflow-admin
Overflow-admin's picture

+1

But for the moment it's amusing. Will D) when bored.

Mon, 07/25/2011 - 10:37 | 1490399 Lord Welligton
Lord Welligton's picture

How do you "mod" comments?

Thanks.

Mon, 07/25/2011 - 15:01 | 1491489 IQ 145
IQ 145's picture

Good. 

Mon, 07/25/2011 - 09:43 | 1490266 apberusdisvet
apberusdisvet's picture

I wonder how the Ministry of (dis)Information will spin an AA

Mon, 07/25/2011 - 10:13 | 1490327 IBelieveInMagic
IBelieveInMagic's picture

It doesn't matter as long as all the other reserve currencies are on similar trajectory -- UK is considering QE, Euro is f'ded, Yen is constantly being topped up. As long as we have our foot on the throat of ME oil and other commodity deficit countries such as China/India do not flinch, this game can go on. MAD at work.

Mon, 07/25/2011 - 10:47 | 1490436 dracos_ghost
dracos_ghost's picture

They'll spin it as a budget cut. Saving on the letter "A" should take in 500Billion over 10 years.

Mon, 07/25/2011 - 09:45 | 1490273 Franken_Stein
Franken_Stein's picture

 

Have you noticed that they replace the 1 dimensional barcode with the 2 dimensional pixel code ?

Also to be found everywhere on ad posters.

 

Mon, 07/25/2011 - 09:45 | 1490274 Version 7
Version 7's picture

The reckoning day will arrive not when the US defaults, as that probably will never happen, but when China decides to effectively start dumping their 3 trillion $ or so.

Mon, 07/25/2011 - 10:23 | 1490357 ATM
ATM's picture

I agree the US will not techically default but will print to oblivion. As that starts to happen the Chinese will dump their $3T back on top of us just as the inflation death spiral begins. They'll get all sorts of good US goods nd property at cheap prices while their dollars have some value and the rest of the people in the US will sit around and watch their dollars shrivel up and blow away.

Mon, 07/25/2011 - 10:37 | 1490398 Long-John-Silver
Long-John-Silver's picture

Real estate in Fascist America is worthless. You rent it from Federal and Local Governments. What happens if you can't pay the property tax? You end up with Detroit where thousands of acres of abandoned property is bulldozed flat and leased to farmers for pennies on the acre. Even if you can pay the outrageous property taxes designed to force you off they simply move you off via imminent domain laws.

Mon, 07/25/2011 - 11:39 | 1490644 Bastiat
Bastiat's picture

The Chinese have been dumping USD for years -- some say they've dumped about 1/2 now.  The dumping is actually spending in the form of long term resource/commodity aquisitions. These are a not matter of single upfront payments but payments over time, in USD.  When those dollars hit the 3rd world, they will effectively be going from the deep freeze (China's reserves) to high velocity.  If we are not already in hyperinflation due to loss of confidence, this increase in velocity as latent price inflation goes to manifest will get things rolling.

Mon, 07/25/2011 - 15:06 | 1491511 IQ 145
IQ 145's picture

 I agree that this is a significant effect. We exported inflation to China for thirty years; now it will come back; kind of like Chickens coming home to roost; except in this case we might have hoped they would all die, or get lost.

Mon, 07/25/2011 - 11:59 | 1490717 the tower
the tower's picture

The Chinese want ROI, they will dump their $$$ into the EMF. Europe is safe, but what will the US do...

Mon, 07/25/2011 - 21:50 | 1492903 hz
hz's picture

btw, I think around roughly a third of those 3 Trillion in foreign reserves are USD (ie not all 3 trillion).

Mon, 07/25/2011 - 10:40 | 1490409 DeadFred
DeadFred's picture

I think you have nailed the death scenario. I suspect even the downgrade threats are part of the good cop/bad cop routine being used so our closet corporate/fascist president will be 'forced' to fleece social security and medicare and keep supporting the banks and military adventures. They may have a nicely scripted plan but if the Chinese aren't on board they are screwed. I imagined the Chinese are pissed about the last year of currency warfare and if given a good opening will counter attack. They did quite well coming through the last financial chaos so they may not fear version 2.0.

Mon, 07/25/2011 - 09:46 | 1490278 drivenZ
drivenZ's picture

It's all but asured there will be no meaningful reform or groundbreaking history making deal correct? so once they raise the debt limit with some BS deal, they're going to be issuing treasuries like there's no tommorow. seems like fundamental supply demand. rates will have to go up.

 

Mon, 07/25/2011 - 09:51 | 1490288 IBelieveInMagic
IBelieveInMagic's picture

But not if Uncle Ben starts buying up as well -- then the interest rate could even go down...

Mon, 07/25/2011 - 10:00 | 1490304 Hedgetard55
Hedgetard55's picture

True, but then you will see the dollar crash and $50 a gallon gas and it's aftermath.

Mon, 07/25/2011 - 10:29 | 1490374 Boxed Merlot
Boxed Merlot's picture

$50 a gallon gas...

 

Considering one thin pre '65 US dime is valued at about 3. frn, one gallon of US gasoline is an absolute bargain at thirteen to fourteen cents, including taxes.

Mr. Bernanke and his ilk are nothing short of miracle workers.  Why all the fuss?

 

 

Mon, 07/25/2011 - 15:40 | 1491651 Hacked Economy
Hacked Economy's picture

I made a similar comment yesterday.  If a 90% dime is currently at about $3, and silver should (theoretically) increase in value ahead of the curve of gasoline's rise, then a nice Mercury dime should always buy a gallon of gas, no matter how high gas goes.

More or less.

The lesson, class?  Buy gold if you wish (it's always a good idea), but don't ever knock the every-day buying power of silver, especially pre-1965 coins that will be among the most readily recognized and accepted by retail businesses.

Mon, 07/25/2011 - 21:40 | 1492851 laosuwan
laosuwan's picture

people buy silver when they think gold has become too expensive. that's the way it has always been in my lifetime. nobody bothers with silver here in asia. why should they when there is gold? as for coins in usa, i dont think they will be money any time soon. Where will they come from? who will accept them or differentiate between real or fake? Actually, I have one (one) kennedy coin as a souveneir from my time in usa. I wish it were gold instead.

Mon, 07/25/2011 - 18:39 | 1492302 FIAT_FixItAgainTony
FIAT_FixItAgainTony's picture

agreed boxed, been thinking in terms of 90 silver or as I prefer to call it - reality, to figure what really costs what. 

yep.  it's a depression.  it's been a depression for some time now.

i suspect when gas is over $4 a gallon, silver will have gone "up" to still allow the value of the silver dime to maintain a gallon (or better) purchase power.

 

Mon, 07/25/2011 - 10:32 | 1490385 ATM
ATM's picture

but not right away. Rates will drop and people will wonder why the dollar is so strong! We'll see "transient" increases in prices before we see the rocketship up in everything. It's a sucker play.

Mon, 07/25/2011 - 09:54 | 1490296 Franken_Stein
Franken_Stein's picture

 

Graham-Rutman Act & the Grayce commission.

 

Mon, 07/25/2011 - 10:00 | 1490305 ZeroPower
ZeroPower's picture

lol SocGen with a note out this afternooon to sell USDJPY till the 75s

Mon, 07/25/2011 - 10:00 | 1490306 Cassandra Syndrome
Cassandra Syndrome's picture

Jimbo rules bitchez

Mon, 07/25/2011 - 10:00 | 1490307 TradingJoe
TradingJoe's picture

As usual the INSIDERS will make the most money! And walk away home free! We the little guys need to hedge at all times to not get caught pants down! Still, good enough for me!

Long Gold & Silver, Short everything else!

Simple!

Mon, 07/25/2011 - 10:35 | 1490388 Jambo Mambo Bill
Jambo Mambo Bill's picture

What is going to happen with Gold and Silver price when they come up with some kind of crooked deal any time now?

Maybe a HUGE pullback... A better opportunity will come after that!

The long time US debt problems is insolvent!

However in a short play like Jim, I would hold back any big position in PMs and keep it in the greenback. After the hype of some kind of stupid debt deal we then have nothing else holding PMs for new heights.

Took some profit off the table earlier, I am waiting for a lower PMs anytime this week...

Just my 2 cents...

Mon, 07/25/2011 - 10:36 | 1490395 SheepDog-One
SheepDog-One's picture

People who expect some miraculous surprise delivery of Hefty bags full of crack rocks to support the wildly hyper-valued stocks and bonds are in for a very rude awakening real soon.

Mon, 07/25/2011 - 10:01 | 1490308 Hedgetard55
Hedgetard55's picture

Wait, little Timmay said there was absolutely positively no chance of a downgrade!

Mon, 07/25/2011 - 10:03 | 1490309 Arch Duke Ferdinand
Arch Duke Ferdinand's picture

The Federal Reserve Cartel....Eight Families...

http://seenoevilspeaknoevilhearnoevil.blogspot.com/2011/06/federal-reser...

OT: Hilarious 2 Min Vid...

http://www.youtube.com/watch?v=W0Uju3tYS2s

Mon, 07/25/2011 - 10:05 | 1490316 Hannibal
Hannibal's picture

Silver bars and rounds, keep on stacking them!

Mon, 07/25/2011 - 10:10 | 1490324 paxxi
paxxi's picture

I loved Jim jumping in his box to debunk the last statements of the host.

Mon, 07/25/2011 - 10:13 | 1490328 the not so migh...
the not so mighty maximiza's picture

he is long bonds i assume.

Mon, 07/25/2011 - 10:15 | 1490329 Zero Govt
Zero Govt's picture

 

Jim Rogers, about a Decade ahead of the Credit Ratings Agencies

Mon, 07/25/2011 - 10:15 | 1490332 cheesewizz
cheesewizz's picture

OMG, If I had to listen to that lady everyday, I would kill myself.

Mon, 07/25/2011 - 10:19 | 1490342 Sudden Debt
Sudden Debt's picture

Maybe Congress can create a SUPER RATING for the US?

One that doesn't give a shit about the countries situation and without accountability to anything or anybody?

 

Mon, 07/25/2011 - 10:23 | 1490356 SheepDog-One
SheepDog-One's picture

CONgress can just put in place the 'Super Best Friends Forever' club.

Mon, 07/25/2011 - 15:14 | 1491545 IQ 145
IQ 145's picture

We could call it "Sub-Standard and Fairly Poor" ratings agency.

Mon, 07/25/2011 - 10:23 | 1490354 Dr. Engali
Dr. Engali's picture

This womwan is a complete moron.

Mon, 07/25/2011 - 10:25 | 1490359 SheepDog-One
SheepDog-One's picture

Arent they all? I mean of course all TV commentator types.

Mon, 07/25/2011 - 10:45 | 1490424 Isotope
Isotope's picture

I'm always dumbfounded when a child and a noob like "Kelly" thinks they can school Jim Rogers or call him out on a mistake. He was making millions when she was crapping in her diapers. Somebody needs to vet those lines that she is being fed through her earpiece. It's embarrassing to listen to her being nailed to the wall so gently but thoroughly. A good example of the 'Velvet Harpoon' in action.

Mon, 07/25/2011 - 10:48 | 1490441 SheepDog-One
SheepDog-One's picture

She seems like she's the WSJ version of Erin Burnett, same arrogant know-it-all attitude in a ditz but not near as nice to look at.

Mon, 07/25/2011 - 15:18 | 1491556 IQ 145
IQ 145's picture

I was visiting at my friend's house, and I discovered if you turn off the sound, Erin Burnett is a very, very nice person. Very nice. I feel warm and good looking at Erin Burnett.

Mon, 07/25/2011 - 10:28 | 1490371 Sandy15
Sandy15's picture

I like him....... he is the one of the few telling it like it is..........

 

Mon, 07/25/2011 - 10:28 | 1490373 AustrianEconomist
AustrianEconomist's picture

A downgrade is a must if the rating system is not a complete fraud already. The US should be a CCC rating just above junk because that is reality. There is no way for the US to make any significant budget cuts, the US is bankrupt, end of story.

Check out the latest from the Capital Research Institute (CRI):

The Financial System - A House of Cards

Mon, 07/25/2011 - 10:34 | 1490390 SheepDog-One
SheepDog-One's picture

Yea the US is totaly insolvent, bottom line. I dont really care what story they tell, when youre broke and cant even borrow enough to pay the interest on your debt, youre finished. I dont care what 'rating' they make up, it is over.

Mon, 07/25/2011 - 19:22 | 1492389 FIAT_FixItAgainTony
FIAT_FixItAgainTony's picture

isn't the fact that this all is a fraud something that's been revealed for YEARS now?

opt out. stack. stock. load.

Mon, 07/25/2011 - 10:29 | 1490378 eddiebe
eddiebe's picture

The market always does what it's supposed to, you just never know when.

Mon, 07/25/2011 - 10:32 | 1490386 SheepDog-One
SheepDog-One's picture

Bottom line from here on out we just see stabilizing attempts in bonds and stocks and the rest of the paper garbage.

ANY 'solution' they come up with will fall far short of the super junkie stock fans and the bond dorks expectations I guarantee it. Ive been saying it all along, there will be no Hefty bags of free crack rocks delivered.

Mon, 07/25/2011 - 10:36 | 1490393 Die Weiße Rose
Die Weiße Rose's picture

the Euro will take over soon as new Reserve Currency, since the USD is becoming increasingly worthless,

thanks to the Federal Reserve's endless US currency devaluation, monetary intervention

and " beggar thy neighbour schemes " to make US imports more expensive for US citizens and exports ( what exports?) cheaper. But the Fed's scheme to debase the US currency is heavy handed and dishonest and is is starting to backfire.

For China, the Eurozone is now a much more viable market to invest in Bonds, than to risk their investments by proping up the by now much insolvent and heavily manipulated ( Fed QE 1,2,3,4,5 endless Ponzi lottery ) US Bond Market.



Mon, 07/25/2011 - 15:26 | 1491590 IQ 145
IQ 145's picture

"Today, Germany! Tomorrow, The World!" You're confused. All the currencies will devlaue due to ongoing inflation. The FX ratio for the Euro; currently being shown up by the Swiss Franc, has no visible means of support. The EUR'USD turn is coming.

Mon, 07/25/2011 - 10:49 | 1490419 baby_BLYTHE
baby_BLYTHE's picture

Bet against Jim Rogers investment advice at your own portfolio risk.

Here is a video I found of Jim Rogers forcibly restraining an Indian man that grabbed his girlfriend's ass.

Jim is alpha, bitchez

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

Mon, 07/25/2011 - 12:12 | 1490774 Temporalist
Temporalist's picture

Thanks BB that was like midget wrestling...

Mon, 07/25/2011 - 12:16 | 1490788 Ghordius
Ghordius's picture

cool video, thanks!

What I just wonder is how much she really believed that the local police would find some grabbing of a foreign woman's bottom interesting or even worth a charge.

Mon, 07/25/2011 - 21:27 | 1492766 laosuwan
laosuwan's picture

two comments:

 

one, that's a very easy hold to get out of. And then what?

two, THAT"S his girlfriend?! With his money?

 

I thought this guy was supposed to be highly intelligent. Thank you for posting this video. I am not seeing a leader but a reckless individual.

Mon, 07/25/2011 - 21:58 | 1492946 contagiousNY
contagiousNY's picture

it actually looked like the guy was content to be held, enjoying a little closeness to Jim.

Mon, 07/25/2011 - 10:43 | 1490421 SheepDog-One
SheepDog-One's picture

Its amazing how people cant see the overall bigger picture that this is just the end of the biggest transfer of wealth in history, and planned 3rd worlding of america while everyone believes things are about to get better with the delivery of some miracle or other.

Mon, 07/25/2011 - 10:59 | 1490481 espirit
espirit's picture

+1 oz SD1... Yes, sad.  Looks like we have a ways to go yet, with Africa the next stop before we hit rock bottom.  Wages will reflect 3rd world income before manufacturing returns home, so debt ceiling and default just a kick the can down the road scenario, until we get there.

Mon, 07/25/2011 - 10:52 | 1490456 Dr Gonzo
Dr Gonzo's picture

No one can doubt there is a huge disconnect with the way Credit Rating Agencies treat European economies and how they treat the US economy. The US hasn't been Triple A for a long time. If Moody's had its way the US would remain AAA until the day it goes down to junk status. I mean China and Saudi are both Aa3 and the US is AAA. Don't believe the hype. 

Mon, 07/25/2011 - 10:52 | 1490457 gwar5
gwar5's picture

Jim Rogers, he's been right all along. Also said he'd would end the Fed. It's that time.

Mon, 07/25/2011 - 11:08 | 1490525 baby_BLYTHE
baby_BLYTHE's picture

Indeed

We've Had 3 Central Banks In The History Of America, 2 Of Them Failed And This Will One Will Too! The FED should be abolished. In my view their day is done.- Jim Rogers

http://dailybail.com/home/jim-rogers-weve-had-3-central-banks-in-the-his...

Mon, 07/25/2011 - 11:10 | 1490535 DCFusor
DCFusor's picture

Picked up a large "trading position" in GLD and SLV (and other versions of PMs) last week on the dips, sold at open this AM, just as all the financial media are saying get in.  That's just about how much ahead of them you want to be (still holding my core positions in PMs of course).  As some here have mentioned, we kinda expect another dip this week.  That'll be time to buy again I believe.  I might miss a little something, but banking profits always feels good, and the way it was going down this AM, seems like it was a good trade to do.  Still not back up to where I sold...we'll just have to see.

Mon, 07/25/2011 - 11:20 | 1490558 Doyle Hargraves
Doyle Hargraves's picture

 Welcome to Mr. Roger's neighborhood bitchez!

Mon, 07/25/2011 - 11:39 | 1490642 theotheri
theotheri's picture

Looks like Kelly missed her makeup call this morning.

Not sure if most of you have your heads so far up Tyler's gold ass that you can't listen, but Rogers says he OWNS THE DOLLAR.  That's the overiding point of this video.

Mon, 07/25/2011 - 12:30 | 1490844 FreedomGuy
FreedomGuy's picture

I love it when there are people who can back off the myopic view and see the whole forest, not just the trees. The U.S. hasn't and probably won't fix anything. The "system" itself is bigger than the politicians and the statists led by Obama have the upper hand. It will result in our own destruction but that is okay with them. It will most likely increase the demand for more government and the "strong man" who will lead us out, a.k.a. Roosevelt, Hitler, Mussolini.

Do NOT mistake the weak fragile conservative alliance called the Republican Party for true libertarians. Only libertarian philosophies that cut the state by asking it to do less will reverse our course. The Republicans have the fatal flaw of agreeing with Democrat/statist party on most everything, Medicare, Medicaid, Soc. Sec., farm subsidies, etc. Because of that, America will lose. Ron Paul is the only one that will make the truly hard choices. The rest is just mowing the weeds at best.

Mon, 07/25/2011 - 13:54 | 1491172 bugs_
bugs_'s picture

"I am also short bow ties in addition to the US Bond Market"

Mon, 07/25/2011 - 14:01 | 1491202 ceilidh_trail
ceilidh_trail's picture

I met Jim around 1994. Very smart guy, down to earth and easy to talk to. I tend to follow him (think TBT)... I guess also UUP?

Tue, 08/23/2011 - 23:20 | 1593496 karmete
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