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Sunday, October 26, 2008

Jim Rogers Says Massive inflation is Coming

In this Oct. 24, 2008 Bloomberg interview, Jim Rogers predicts massive inflation is coming.
  • We are going to have an inflation nightmare.
  • Whenever people have printed a lot of money, six months to two years later, you have terrible inflation.
  • People all over the world are printing money like mad.
  • Massive inflation is coming and the only way to protect yourself is to be out of paper assets and in hard assets like gold and other commodities. (US Treasury Rates)
Jim says he is currently in short term treasuries but expects to get out soon and go short more government long term bonds.

He also says commodities are still in a bull market, he has used this downturn to add to commodities, especially gold, and he expects to make the most money in agriculture in the years ahead.

YouTub Video: Oct 24 Bloomberg Interview.

Jim is buying commodities and Swiss Francs.

Jim says we should abolish the US Federal Reserve and the guys on Wall Street with the fancy cars need to learn to drive tractors and the farmers in the years ahead will be buying the fancy cars.

Jim also showed two gold coins he bought in Zurich. The woman interviewing him said individual investors are having a hard time getting gold coins to which Jim said that is often the sign of a top.
"There has been a run on gold..... The public, the odd lotters, are sometimes the last ones in.

Jim says Paulson, Bernanke and the "idiot at the NY Fed" are never right and making it worse because they are not letting people/banks fail. Jim thinks they could turn this into another depression. Jim brought up what happened in Japan and blamed it on not letting banks fail in Japan.
Jim, didn't Japan have massive deflation during that period where they let banks mark assets to market to show they failed?
Jim says "propping people up has never worked in the history of the World."

Jim says the competent people should be taking market share from the incompetent, but we are seeing the reverse due to government interaction. Banks that make bad loans are getting more money from the governments to make more bad loans rather than let them fail.

Jim says the inventory of food is the lowest in 50 years. There is a shortage of farmers, tractors, tractor tires, seeds, etc.. Too many stockbrokers, journalists and investment bankers.

Jim says the bottom in equities will come when the market goes up on bad news.

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