Posted on 03/03/2009 6:03:14 AM PST by Red in Blue PA
Bailing out the banks is going to increase the debt spiral and finally cause the destruction of the world's biggest economy, Rogers said.
"I think it's astonishing, they're ruining the US economy, they're ruining the US government, they're ruining the US central bank and they're ruining the US dollar," he said.
"You are watching something in front of our eyes, very historically, which is basically the destruction of New York as a financial center and the destruction of America as the world's most powerful country."
(Excerpt) Read more at cnbc.com ...
And sadly, very accurate.
And that was their intention all along.
McCarthy was right.
It is to help Globalization [meaning it is to help turn the USA in a Banan republic]. Washington is serving its citizens up to Multi-national Corporations.
I just heard on Quinn and Rose, Jim mention that AIG held some of the retirement plans of none other than the NEA, what a surprise they are too big to fail....
“The idea that you have too much debt, too much borrowing and too much consumption and you’re going to solve that problem with more debt, more consumption and more borrowing? These people are nuts.”
I see and hear alot of buyers remorse lately. Shame on them. They got caught up in the “Hollywood” of Obama. Damnit and now we are in a terrible mess. Im beginning to believe one must pass a test before voting, (wink wink)
What me and alot of people here have been saying for some time:
“Power is shifting now from the money shifters, the guys who trade paper and money, to people who produce real goods. What you should do is become a farmer, or start a farming network,” Rogers said.
Rogers is right. There’s not enough money in the world to bail out all these scammers. They made their bed, let them sleep in it.
What a concept!
But then we can't use the GDP to fake prosperity.
Sixty four years ago, Norman Thomas knew what was going to
happen to our country in 2009.
Norman Mattoon Thomas (1884-1968) was a leading American
socialist, pacifist and six-time presidential candidate for
the Socialist Party of America.
As the Socialist Party candidate for president, Thomas said
this in a 1944 speech:
“The American people will never knowingly adopt
socialism. But, under the name of ‘liberalism,’ they
will adopt every fragment of the socialist program, until
one day America will be a socialist nation, without knowing
how it happened.”
He went on to say: “I no longer need to run as a
presidential candidate for the Socialist Party. The
Democratic Party has adopted our platform.”
Worth repeating every day!
“Power is shifting now from the money shifters, the guys who trade paper and money, to people who produce real goods. What you should do is become a farmer, or start a farming network,” Rogers said.
First Rodgers quote I've liked
Only problem is the fake capitalist thieves of Wall Street have killed our economy so bad that producing real goods is difficult. Plus lots of our real goods are produced in China and the US Dollar still has enough credibility to import cheap Chinese stuffs
Fake capitalist thieves of Wall Street ...... I laugh when I see their libertarian stooges here defend them for free
I read the whole thing... First Jim Rodgers essay I could stomach.
But he’s likely heavy into gold so if AIG is allowed to fail it won’t impact him. Because the story goes that if AIG fails with it’s enormous credit default swap exposure then they drag down everyone with a cascading series of defaults and bankruptcies of large banks and financial firms
Then gold is the last man standing
"There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as a result of a voluntary abandonment of further credit expansion,
or later as a final and total catastrophe of the currency system involved."
-~~Ludwig Von Mises
Gold will be the last man standing. Along with guns, food, ammo etc.
The only other alternative will be a forced global fiat, which will be a disaster leading to global tyranny.
Exactly, casino capitalism only works for so long. Trading paper is no substitute for real wealth creation. Working a phone all day long and typing faulty assumptions into a faulty computer model that says that credit default swap you just wrote for a healthy bonus will never be called only works for so long and is not wealth creating. It ony gives a false sense of security and ends up in the misallocation of even more resources.
It had to happen sooner or later.
Gold has stayed stable (and up) compared to other commodities. Of course only the terminally dense think gold is a mere commodity though at times it goes to sleep for years and behaves like one
The best recent take on gold was that today all currencies are uncertain and hard to pin down. Hard to get a confident fix on. So people are rushing into gold because it owes nothing to no one like a fiat currency does. Of course most gold buyers don’t even know what “fiat currency” means. They are operating on raw instinct and today gold emanates trust and permanence compared to evanescent currencies
When even the Swiss are in trouble due to East Europe loans
” have killed our economy so bad that producing real goods is difficult “
I’ve been toying with the thought that what we’re witnessing (experiencing?) just might be a realignment of Business Models — If not the actual death, at least the de-emphasis of Mega-Huge-Bureaucratically convolute - Big Business, to be replaced, at least in the beginning, by a myriad of cottage industries and return to ‘local supply’.....
Not entirely fleshed-out yet, obviously — but I think I’m seeing the beginning of some kind of trend.....
The first step toward that was Sarbanes-Oxley.
Other than that, Rogers is a camera whore, who only understands, and is bullish on one thing, commodities. Rogers only cares about one thing, himself.
The only way out of this mess, is less regulations and less burden, and more incentives for small business. Massive, anarchist business failure isn't.
Recent email I received says they also insure the pension trust for CONGRESS. Anyone know if that is true?
Not entirely fleshed-out yet, obviously — but I think I’m seeing the beginning of some kind of trend.....
Gerald Celente of future trends (kind of a shameless self promoter) talks that way. That local small businesses that can produce an excellent product at a fair price will do better. I see some signs of that
Main street comes back as malls with national chains die
Americans are relentlessly capitalist (even many 0bama voters) and this gives me reason for some hope
We can't just sell on Main Street. We have to produce and real production starts at the bottom which is agriculture and the farmer. Then comes industry. But we have shipped so much industry overseas that the knowledge base of older managers and workers is partly destroyed and harder to pass on to a new generation
100% correct.
YOU THE TAXPAYER insure that. Government workers will be the new kings, princes and princesses of America. They will be envied. Our USASoviet nomenclatura. You will have to be connected with the Democrat/Communist party to get a government job
The question keeps arising, why is AIG receiving such preferential treatment from the Administration??
Answer: they are holding the huge reserves of union pensions.
Teachers.
It’s for the children.
The indoctrination must continue.
Marc Faber saw this in 2006 calling them "money shufflers" Money shufflers are the new captains of industry LINK-------->>>
In the meantime, members of the American elite are enjoying the asset inflation, the printing of money, and the trade and current account deficits, because they keep the "lower classes" reasonably happy and content by allowing them to continue to consume and buy "cheap" foreign goods. In turn, this excessive consumption and lack of capital spending boosts corporate earnings and cash flows, which then benefit mostly the elite, through rising stock prices. Moreover, the weakening currency, which is also brought about by capital flight – another characteristic of banana republics – doesn't bother the elite much because they have the ability to easily transfer their wealth overseas or to fully hedge their exposure to the declining foreign exchange rate. (The aristocrats of banana republics are usually Swiss banks' best customers.)This is particularly true in the case of moneyed elites, which are relatively fixed asset poor and hugely financial asset rich. Let me explain. Compare, say, a farmer who cultivates land that has been in his family for generations with a money shuffler on Wall Street. The farmer is far more tied to his land by tradition, and by his inability to transfer that land and his familiar environment overseas, than is the money shuffler, who will feel equally comfortable whether he lives in New York's Park Avenue, London's Belgravia, or Singapore's Nassim Road. Basically, what I am suggesting here is that the financial sector – and there are exceptions – really doesn't care much for the overall long-term health of an economy; it is only interested in asset prices moving up – no matter how unsound the economic policies might be that inflate those asset prices.
So, when things really turn bad and – to use Senator Webb's words – the "bifurcation of opportunities and advantages" along class lines leads to "a period of political unrest", the money shufflers – like so many former leaders of banana republics have done before them – just pack their bags, hop in their private jets, and move to another society where they can start playing the same game all over again! Now, this is not to say that there are no responsible people among the money shufflers, but the immense pressure to perform in order to make money as quickly as possible, and hence to enjoy a "high esteem" among their peers, which is now based solely on how much money an individual makes, has shifted the priorities of the money shufflers and the chief executive officers of companies in a way that is regrettable.
And despite everything they're doing, my bets on commodities and China have been crushed / Jim Rogers whine off.
” the knowledge base of older managers and workers is partly destroyed and harder to pass on to a new generation “
We’ll just have to re-learn it the old-fashioned way - trial and error and failure....
I’ve spent years in one of the last ‘cottage industry’ endeavors (Southwestern Jewelry), and I can attest that it’s a brutally darwinian process...
Those who learn from their failures eventually thrive...
Those who don’t, end up doing piecework for somebody else.... ;~)
That must be the blame of the spread of STDs, they are spreading the cure.
“Only problem is the fake capitalist thieves of Wall Street have killed our economy so bad that producing real goods is difficult.”
Agree.
Even if one has resources, the odds are slim of a new business making it in this environment.
You are right about producing real goods, with the exception of farming. Farming is real. As a broker/trader I have said for years that we all need three things ... air, water, food, and shelter. The dopes on Wall Street trade paper. In the future those who traded on paper and drove Bentleys will be farming, and those who farmed will be driving Bentleys
Rogers is talking sense.
You make me laugh, too. Imagine the price of food if everyone farmed.
Your calls for a return to the 19th century, though quaint, are ridiculous on their face.
Have you ever seen that PBS reality show where they take modern, urbanites and return them to that era?
I cannot wait to meet you in person. I am certain you are nothing like I imagine. Best to you.
Gold won’t be very valuable when society collapses. No one can verify it is real. Silver maybe (I doubt it, though), but actual goods will have value.
Guns, food, ammo, etc. I wouldn’t trade you those items for any amount of gold. How do I know it is pure or real. That world is long gone.
No trust left in the world doesn’t bode well, but for things that are real.
Beads might of worked for the Indians, but not any more.
Given their cozy relationship with government, I think you are right.
Better a return to real free wheeling capitalism!
It is a club and you and I are not invited. (Maybe you are, but I know I am not.) ;-]
True wisdom.
Tragically, it has been squeezed out of DC and state/local governments decades ago.
Do you ever wonder why sane people elect politicians (I mean politicians of all people!) to run their lives?
Go back to class. That is exactly WHY gold is valuable, because it is IMPOSSIBLE TO COUNTERFEIT.
(Unlike any paper money ever made, BTW.)
That is because gold weighs nearly twice as much as lead. Just try to mint an exact copy of a gold coin like a Krugerrand or a Maple Leaf in lead, and then gold plate it. Not only would a minting machine that could strike a nearly-exact duplicate of a gold coin cost a fortune, it would be a waste of money and time. All you would need to detect the forgery would be a simple $2 postal scale. Then the moronic counterfeiter would be lynched for his efforts.
Ditto detecting fake gold bars. A simple scale tells all.
Until somebody figures out how to turn lead into gold, it will be dead easy to tell one from the other because of gold's much greater weight.
Used to be you got a low paying government job that demanded little and you could never be fired, unless you got convicted and it was in the papers.
Today all that’s changed.
Now you’ve got a high paying government job that demands little and you cannot be fired, unless you got convicted and it was in the papers and you are a Republican.
When he squeals this loud they’ve hit him in the pocketbook for certain.
He usually is glib and arrogant. He looks pained now.
Are you going to finish your current book before this mess completely collapses? (That could be within a couple of months).
So gold’s never been counterfeited in history?
The funny part about libertarians is their hero in "Atlas Shrugs" was an industrialist. He made useful items. The libertarian heroes today are the buccaneers of Wall Street with their derivatives and credit default swaps
The reason Ayn Rand did not write about some libertarian hero of Wall Street was that the path to riches back when she wrote (1940s) was manufacturing and industrialists were viewed as masculine and dynamic. The wimpy rip off artists of Wall Street don't measure up to this. The most dynamic thing they ever do is work out in the company gym
That will be just as effective as counterfeiting gold, when a $2 postage scale will detect a fake. Or for that matter, your two hands will detect a fake, with a real 1oz gold coin in one hand, and a .6 ounce fake coin in the other. That is, if you can even find anybody stupid enough to set up a $$$$ counterfeit minting machine for such a stupid waste of time, when the fakes will still be detected by weight.
Accurate?
Hardly.
Mr. Rogers has moved off shore. Promoting the abandonment to destruction of the entire U.S. economy is not that hard for him to do.
I’m writing about the last 20 pages now, then it’s given a final proof, then it’s PDF’d and sent to the printer.
What about determining 10K v. 14K etc.? I read the ferfal essay about buying junk gold, and there are a couple of pawnshops near me.
dennisw, you misread me and know nothing of my heroes.
Awesome.
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