The Inflationary Holocaust Happening Anytime Soon

wombat42_2

Rather like the 1970s but worse.

http://news.goldseek.com/GoldSeek/1223913333.php
From the author of this video: "Inflationary Holocaust. 'Legendary investor Jim Rogers warned during a CNBC interview this morning that global central banks are creating the environment for an inflationary holocaust by their ceaseless overprinting of currency, a measure that isn't even successful in stabilizing the stock market.

Rogers said that the only solution to the market crisis was to let failing banks and speculators go bankrupt and stop pumping endless amounts of liquidity into the system, labeling it outrageous that responsible investors and taxpayers are being made to bail out crooks on Wall Street.

"The way to solve this problem is to let people go bankrupt," Rogers stressed, "All of this pumping money into the system is not going to save it - see what the market is saying, it's saying we don't buy that, let people go bankrupt," he added.

"Then you will hit bottom and then you start over. The people who are sound will take over the assets from the people who aren't sound and we will start over. This is the way the world has worked for a few thousand years," said Rogers.

Rogers warned that the reliance on governments printing money would not aid a recovery and would only lead to the problem becoming worse in the future.

"We're setting the stage for when we come out of this of a massive inflation holocaust," he said.

Rogers said that excesses of credit and people becoming over-leveraged meant that they would now have to take some pain.

"Never before in world history were people able to buy houses with no money down, many people bought four or five houses with no money down and no job and then they did it with cars and student loans and credit card loans, you just think we say well that's too bad we're gonna start over nobody loses his job, be realistic," said Rogers.

Rogers said that the G7 leaders, who are meeting this weekend, should "go down to the bar, have a beer and leave the rest of us alone, let the people who are sound succeed and let the other people fail."

"What I'm afraid of is they're gonna keep doing what they've been doing - which the market hates, you can see the market hates it - because this is going to unleash rampant inflation around the world, rampant confusion in the currency markets and you're gonna have currencies gyrating all over the world," said Rogers, repeating that the central bankers were unleashing an "inflationary holocaust"."

wombat42_2

http://seekingalpha.com/article/99838-how-long-will-the-bear-market-last
"This means all commodities will skyrocket and the current slump of commodities will provide the best buying opportunity before oil goes to $200 and gold to $2000. When people lose faith in fiat money, the next thing to happen is barter like in the Weimar Republic, where only commodities, especially gold, are treated as money.
In this difficult period, do nothing and hold nothing but gold. Only gold, the ultimate asset that has survived the longest in human history, can save us now.
A specter is haunting the world – the specter of gold, while the old fiat money has lost all its powers."

bazster

Pah. There's self-promoting "experts" everywhere right now. Some geezer was claiming on Radio 4 yesterday that in a year's time, thanks to recession and plummeting oil prices, we may be dealing with the problem of deflation.

So who you gonna believe? They can't all be right. Even if you go to college and get yourself a PhD in economics you'll probably still get it wrong 90% of the time, just like every other economist does.

wombat42_2

bazster wrote: »

Pah. There's self-promoting "experts" everywhere right now. Some geezer was claiming on Radio 4 yesterday that in a year's time, thanks to recession and plummeting oil prices, we may be dealing with the problem of deflation.

So who you gonna believe? They can't all be right. Even if you go to college and get yourself a PhD in economics you'll probably still get it wrong 90% of the time, just like every other economist does.

Jim Rogers has a long long pedigree of successful predictions over decades. He is NOT a spotty whizz kid economist:
http://en.wikipedia.org/wiki/Jim_Rogers

purch

He is NOT a spotty whizz kid economist:

Yes..............but he does fall into the category of

"self-promoting "experts"

:eek:

meester

Fuc king hell mate, do you really have to call it a holocaust? Don't you think it's a little offensive to post the rantings of some self-obsessed investment 'guru' as a 'holocaust'?

bazster

wombat42 wrote: »

Jim Rogers has a long long pedigree of successful predictions over decades. He is NOT a spotty whizz kid economist:
http://en.wikipedia.org/wiki/Jim_Rogers

Yeah, whatever, the sky's falling in...

I see nothing in that bio that makes me think he's any more or less likely to be right than any other pundit with a similarly impressive CV. Only time will tell, but if he's dead right or dead wrong I will be equally unsurprised either way.

But, more to the point, since you clearly do believe him, what you gonna do about it?

wombat42_2

bazster wrote: »

Yeah, whatever, the sky's falling in...

I see nothing in that bio that makes me think he's any more or less likely to be right than any other pundit with a similarly impressive CV. Only time will tell, but if he's dead right or dead wrong I will be equally unsurprised either way.

But, more to the point, since you clearly do believe him, what you gonna do about it?

Apart from cash my investments are 100% gold and commodities.

JIm Rogers isnt a self promoting egotist. He has such a long successful track record that he is constantly pestered by the media for interviews.

nicko33

meester wrote: »

******* hell mate

so you thought it would be a good idea to be offensive yourself, just to make sure

bazster

wombat42 wrote: »

he is constantly pestered by the media for interviews.

Of course he is: the media love lurid sensationalism.

Reaper

I watched the video but I don't agree with him. It's all very well for a retired millionaire to say let the meltdown go ahead but those of us with jobs would rather world leaders didn't follow his advice and go down the pub and let world economy collapse.

As for inflation - we are headed for recession. I'm hoping that the actions round the world will prevent it being a big one but there will be one no matter what.

Normally in a recession inflation is small or even goes negative. Due to all the spending and borrowing going on I fear we can expect some degree of "stagflation" but even so I see no justification for his claim of a holocaustic hyperinflation.

Maybe since he has bought heavily into commodities his opinion is not unbiased. He would certainly benefit if governments took his advice.