The world is in a recession, but even worse is that the secular supply is getting worse. The bull market in commodities is going to continue, and that will be the best place to make money. Gold will keep going up, but you could earn more money by investing in agriculture. For Jim Rogers, inflation is a concern that should drive most equities higher.
These guys Bernanke and Paulson are always wrong. They are never right. They’re the ones who are making all the mistakes. In the 1930s, policy makers made mistake after mistake, and the gave us a Great Depression. The Jim Rogers inflation prediction is what has been right.
The Japanese had the lost decade in the 1990s until now. This may be what happens to the United States. Someone will need to experience a lot of pain. If you wanted to lend money to someone, you would look at their assets and assess how likely they would be to pay you bad. Propping people up has never worked in the history of the world.
The way that the system is supposed to work is that the incompetent people go out of business. Instead, they got bailed out and can now continue to compete with the competent people with the competent people’s money.
There have been a run on gold coins, and it could be because the odd-lotters are often the last into the market. The inventories of food is the lowest it has ever been. Everyone who is a farmer is now an old man. Young people all became bankers or lawyers. There will be a tremendous opportunity ahead.
The Federal Reserve does not solve any problems when they give money to banks that have been using false numbers. When more money gets printed, inflation always follows 2 or so years later. The Fed has been printing, and they will lower interest rates even more. The Jim Rogers inflation prediction is that massive inflation is coming, and the only way to protect yourself is to get out of paper assets like stocks or bonds and to get into real hard assets.
The Federal Reserve is causing all of these problems. They have taken hundreds of billions of dollars on their balance sheets that the American Taxpayers will be responsible for paying off.
The government cannot even run the post office, and now they want to run banking system. The Jim Rogers inflation scenario is the logical outcome of all this.
