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Jim Rogers on Gold and Why Geithner Is Toast
Economic Policy Journal ^ | 11/27/09 | By Maria Bartiromo

Posted on 11/27/2009 3:09:05 PM PST by FromLori

I was on assignment in Singapore on Nov. 24 when gold hit an all-time high of $1,174 an ounce. That was fortuitous because Singapore is the home base of commodities guru Jim Rogers, creator of the Rogers International Commodities Index. Meantime, back in the U.S., reports were surfacing about growing discontent in the halls of Congress over the performance of Treasury Secretary Tim Geithner and the possibility he might be replaced by JPMorgan Chase (JPM) CEO Jamie Dimon. When I rang up Rogers, he was his usual low-key self, with quiet opinions about the future of gold prices, commodities to watch, and why Obama should dump Geithner.

MARIA BARTIROMO

Gold, as you know, hit an all-time high today, with the Russian central bank buying bullion. How high can gold go?

JIM ROGERS

Well, I own gold and I have for a while. How high can it go? I fully expect it to be over a couple thousand dollars an ounce sometime in the next decade—I didn't say the next month, I didn't say the next year, I said the next decade—because paper money around the world is very suspect. But right now everybody's bullish on it, so I don't like to buy things when that's happening. But I'm not selling under any circumstances.

What's behind the runup? Has buying by the central banks changed the equation here? Or is this still a demand story?

Certainly a demand story because, as I said, everybody's printing so much money and people around the world are worried about that. But you also have central banks, which five years ago were selling gold, now buying. So that's a huge shift in the marketplace. Central banks are like lots of other people—they just follow the crowd. There are probably better commodities to buy than gold, but you can't tell that to central banks because they've got gold on the brain...

Tim Geithner has been under attack lately. How's he doing? Listen, I have been a critic for years. Geithner should never have been appointed to anything. He's been wrong about just about everything for 15 years.

Do you think he'll lose his job?

Of course he's going to lose his job, because as Mr. Obama realizes that Geithner doesn't know what he's doing, he's going to look for somebody else because he doesn't want to take the heat himself. So he's going to look to blame somebody, and the obvious person is Geithner.

Read the full interview here.


TOPICS: Business/Economy; News/Current Events
KEYWORDS: geithner; gold; rogers

1 posted on 11/27/2009 3:09:07 PM PST by FromLori
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To: FromLori; perchprism; LomanBill; JDoutrider; tired1; Maine Mariner; demsux

ping

Also good at his site today

BofA: Dubai Woes May Reach ‘Sovereign Default’ and Cause Emerging Market Problems

http://www.economicpolicyjournal.com/2009/11/bofa-dubai-woes-may-reach-sovereign.html

Dubai Featured in Wall Street 2 !!!

http://www.economicpolicyjournal.com/2009/11/dubai-featured-in-wall-street-2.html

Rat Fink Seeks Billions for His Dirty Work

http://www.economicpolicyjournal.com/2009/11/rat-fink-seeks-billions-for-his-dirty.html


2 posted on 11/27/2009 3:11:53 PM PST by FromLori (FromLori)
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To: FromLori
Obama realizes that Geithner doesn't know what he's doing

Does obama realize that he doesn't know what he (obama) is doing?

3 posted on 11/27/2009 3:14:20 PM PST by Salvey
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To: FromLori

“Central banks are like lots of other people—they just follow the crowd. There are probably better commodities to buy than gold, but you can’t tell that to central banks because they’ve got gold on the brain...”

Gold is in a bubble. But the ability of bubbles to continue to grow can be astounding.


4 posted on 11/27/2009 3:17:53 PM PST by Pelham ("Badges?!! We don' need no stinkin' badges!!")
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To: Salvey

No lol


5 posted on 11/27/2009 3:18:08 PM PST by FromLori (FromLori)
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To: Salvey

Obama realizes that Geithner doesn’t know what he’s doing

“Does obama realize that he doesn’t know what he (obama) is doing?”

A clear cut case of the blind bleeding the blind...


6 posted on 11/27/2009 3:18:49 PM PST by jessduntno (http://www.youtube.com./watch?v=uoeuh-EGj7s)
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To: FromLori

geithber is a tax cheat and a marxist. Firing him is fine, it just won’t matter because his replacement is certainly be another marxist.


7 posted on 11/27/2009 3:23:55 PM PST by rigelkentaurus
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To: FromLori

The Congress should not allow Geithner to abscond with ANY bonuses he’s gotten as Treasury Secretary.

And he should be FORCED to pay all his 2009 Taxes before he leaves.


8 posted on 11/27/2009 3:29:09 PM PST by HighlyOpinionated (Abortion-Euthanasia kills the very people for whom Social Justice is needed.)
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To: HighlyOpinionated

Absolutely and then goldman sachs should pay us back too!


9 posted on 11/27/2009 3:30:48 PM PST by FromLori (FromLori)
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To: Pelham
One could consider everything to be a bubble. Either a convex bubble or a concave bubble. Absolutely nothing is perfectly smooth or exactly where it should be at any given snapshot. So all these convex/concave bubbles create a textured surface of the whole that is larger and more complex and with more variables and unknowns than anyone can get their head around. Each person has his or her own partial view (or agenda) in which he is emotionally (financially?) invested and therefore defends to the death. But the bottom line is that no one really knows much of anything when it comes to predicting what's happening next. (Not that there's anything wrong with that...).
10 posted on 11/27/2009 3:33:01 PM PST by Prince Caspian
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To: FromLori
I just don't understand why Russia and these other countries (India and another one I don't recall) are buyers of gold when it's the highest it's ever been.

Are they being smart or dumb or what?

11 posted on 11/27/2009 3:33:04 PM PST by FReepaholic (Give me ambiguity or give me something else!)
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To: Pelham

We’re in the TULIP phase of the gold run up.
And I ain’t selling either.


12 posted on 11/27/2009 3:33:09 PM PST by Dick Bachert (THE 2010 ELECTIONS ARE THE MOST IMPORTANT IN OUR LIFETIMES! BETHERE!!!)
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To: FReepaholic

My opinion they know the economy is going to crash from all the printing he who has the gold has the power.

http://www.marketoracle.co.uk/Article15355.html


13 posted on 11/27/2009 3:36:54 PM PST by FromLori (FromLori)
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To: FReepaholic

It’s herd behavior. Even sophisticated investors can get caught up in it. That’s a large part of what created our current financial crisis.


14 posted on 11/27/2009 3:44:23 PM PST by Pelham ("Badges?!! We don' need no stinkin' badges!!")
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To: FromLori
Obama the long legged McDaddy Muslim will have no problem replacing Gietner with someone else who doesn't know what he is doing
15 posted on 11/27/2009 3:48:12 PM PST by PoloSec (Paul: 2Tim2:7 Consider what I say; and the Lord give thee understanding in all things.)
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To: Dick Bachert

Like with most bubbles there is a convincing rationale at the beginning for investing in it. There is a convincing case to be made for a coming massive inflation, and not just in regard to dollars. In all currencies.

But often when something becomes a sure bet it’s time to make sure that you know where the exits are. That doesn’t mean it’s time to leave yet. Markets can be irrational far longer than you can stay solvent if you bet against them.


16 posted on 11/27/2009 3:50:40 PM PST by Pelham ("Badges?!! We don' need no stinkin' badges!!")
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To: PoloSec

Yes like summers another disaster.


17 posted on 11/27/2009 3:51:17 PM PST by FromLori (FromLori)
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To: Pelham

Yup.
They have to cover so much bad debt with bad paper, this could go on either until the whole damn thing collapses or the revolution begins.

Either way, gonna be a very bumpy ride.


18 posted on 11/27/2009 3:53:15 PM PST by Dick Bachert (THE 2010 ELECTIONS ARE THE MOST IMPORTANT IN OUR LIFETIMES! BETHERE!!!)
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To: Prince Caspian

Some bubbles aren’t that hard to spot. Timing them is another matter. Using traditional valuations I suspected that SoCal real estate was in a bubble in 2003. By 2005 I knew that prices here were unsustainable, the incomes of borrowers weren’t sufficient to handle the loans that they were taking out. But the top wasn’t in for another year or two.

With gold there isn’t the sort of outside metric like those which you can apply to real estate investing. Calling a bubble in gold is more subjective. What is driving gold is a lack of confidence in currencies, greater wealth in China and India, near-zero interest rates, a dollar carry trade, and a self-reinforcing belief that gold is going to go up. Breaking one of these trends probably won’t pop gold’s bubble. But if a couple of them reverse then I think we will see a dramatic decline in gold.


19 posted on 11/27/2009 4:22:35 PM PST by Pelham ("Badges?!! We don' need no stinkin' badges!!")
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To: FromLori

This is not rocket science.

When the stock market crashes, the people who bought physical gold and gold stocks as a hedge will cash them in to cover their loses. Gold is going down short term - soon. *

We’ve been through this before. When gold falls, and it will, buy in at $950. I’m looking at buying around mid-January.

* (The above advice is the ravings of a lunatic. Do not believe anything he says. So do your own damn due diligence and may you not jump out a window taller than 4 feet off the ground.)


20 posted on 11/27/2009 4:26:11 PM PST by sergeantdave (obuma is the anti-Lincoln, trying to re-establish slavery)
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To: Salvey

Headline I’d like to see:

“Doesn’t Want the Blame: Obama Fires Obama”


21 posted on 11/27/2009 6:11:41 PM PST by Secret Agent Man (I'd like to tell you, but then I'd have to kill you.)
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To: sergeantdave

The game has changed dramatically in the last few months. First China annouced they had completed secret aquisitions of mucho oro. Then India bought a big chunk at $1045. If these two powerehouses are swapping dollars for gold there is nothing that is going to allow it to go back to $950. India will buy again if it gets to $1045 or thereabouts again.


22 posted on 11/27/2009 8:02:27 PM PST by Jack Black
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To: Pelham

“Gold is in a bubble.”
I hope you are right. As I understand the situation that is the only good outcome for most working Americans (make that humans.)


23 posted on 11/27/2009 8:44:11 PM PST by enduserindy (Conservative Dead Head)
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