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Jim Rogers - Wall Street Will Be a Backwash

There are gigantic amounts of money being pumped into the economy by the Federal Reserve. The people who immediately receive that money are better off. The people who don’t get the money are certainly not better off.

The average American should figure out what they know best and then use that knowledge to protect yourself. If you know a lot about agriculture, then you should invest and have your career there. If you know a lot about cars, then that is what you should focus on.

Whether you move from Kentucky to Ohio or Kentucky to Australia, it takes a lot of mental strength and courage. Only a person can make that decision for his or her self.

We are certainly through the first phase of liquidation. A lot of it was forced liquidation by large companies like AIG. This forced even more people to liquidate.

Many governments have increased their debts by staggering amounts, and this will cause things to be even worse. They will print even more money, which will make real assets more valuable than paper assets. We are now at a period in history where there is a shift from the financial sector to the manufacturing centers. Over the next 30 years, you will be much better off in other areas besides finance.

Not too long ago, Wall Street was a backwash. Nobody in their right mind went over there for a career. That changed, and now everyone has an MBA degree.

The cure for higher prices is higher prices. If the price of cotton goes high enough, people will be planting cotton in Central park. If the price of gold goes high enough, people will be digging for gold in their front lawns.

There are a few things that are too highly priced, such as stocks, but that is different from a bubble - a mania.

Treasuries are one of the places where a bubble is developing. One thing about bubbles is that they are very unpredictable and crazy things can happen.

You’re better off trying to make your own judgments about things and to rely on your own thinking. Typically when most people are saying the same thing, then none of them are doing any thinking about it - they are just following every body else.

If the dollar collapses, then an infinity price for gold or silver isn’t unreasonable. When a currency collapses, prices go to the moon.

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