“He’s printing money as fast as he can to save his friends on Wall St.” – Jim Rogers on Fed Chairman Bernanke
After wasting 16 pages of paper on the FOMC’s Halloween Minutes and projections of PCE inflation, it was certainly a breath of fresh air to watch CNBC’s Maria Bartiromo interview Jim Rogers. Rogers, who co-founded the Quantum Fund with George Soros, is chairman of Beeland Interests.
Rogers said that the Fed “doesn’t understand the markets, inflation, and currency. They don’t even understand economics and that is terrifying.”
And his criticism went beyond the Fed: “Fannie (FNM) & Freddie (FRE) don’t have a clue and Citigroup doesn’t either.” “The credit bubble will affect more people than the .com bubble.” (Agree, since economists keep harping that consumer spending comprises 70% of the U.S. economy.)
On the US$: The falling dollar “tells the world we don’t care about the dollar.” Treasury Secretary Hank Paulson is “making a fool of himself all over the world.” Rogers would know as he is a world traveler who has chronicled his most famous journeys in “Adventure Capitalist” and “Investment Biker”. Rogers and his family now reside in Singapore. (I can attest to this from my own personal experience that living in another country allows you to view the U.S. in a more objective light.)
Rogers thinks the U.S. is already in recession. “The government says we aren’t, but they always lie.” (Break out the s-word, stagflation. Just like the last Saturn in Virgo cycle in the late 1970s to early 1980s. Back then, we had no-nonsense four planets in Virgo, Paul Volcker, conquer the inflation beast. Earth energy is about solving the problem regardless of how painful it may initially be, not using “dual mandate” excuses.)
The “Hot Commodities” author is still bullish on them. He’s skeptical there are additional large sources of oil and challenges oil companies to specify where they’re located. He particularly favors ag commodities (cotton, sugar). (As I’ve pointed out in previous posts, Saturn in Virgo from September 2007 to July 2010 would inflate and also create shortages in staples.)