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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redpill's picture

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


gmrpeabody's picture


So much for policing pictures.

caerus's picture

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

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.

IQ 145's picture

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

Mongo's picture

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

GetZeeGold's picture


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


Mongo's picture

Late? You aint seen nothing yet.

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.

rajat_bhatia's picture

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

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

A Man without Qualities's picture

If I ask you nicely, will you fuck off?



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.

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

Overflow-admin's picture


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

Lord Welligton's picture

How do you "mod" comments?


apberusdisvet's picture

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

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.

dracos_ghost's picture

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

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.


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.

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.

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.

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.

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.

the tower's picture

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

hz's picture

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

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.

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.


IBelieveInMagic's picture

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

Hedgetard55's picture

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

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?



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.

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.

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.


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.

Franken_Stein's picture


Graham-Rutman Act & the Grayce commission.


ZeroPower's picture

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

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!


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...

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.

Hedgetard55's picture

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

Hannibal's picture

Silver bars and rounds, keep on stacking them!

paxxi's picture

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

the not so mighty maximiza's picture

he is long bonds i assume.