Jim Rogers : Bernanke has never been right

Discussion in 'Economics & Trade' started by DA60, Jun 20, 2011.

  1. DA60

    DA60 Banned

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    'Jim Rogers : Bernanke has never been right. He's been in Washington for 7-8 years. Please go back and do a study of his record. You will see that the man has never ever been right. Don't pay any attention to Bernanke.
    The economy is slowing down. We're going to have another recession in the US in late 2011 or 2012 or 2013 and it's going to be worse than the last time around, because America has shot all of its bullets, printing money and spending money we don't have. Be very careful.
    - in ET Now


    Jim Rogers started trading the stock market with $600 in 1968.In 1973 he formed the Quantum Fund with the legendary investor George Soros before retiring, a multi millionaire at the age of 37. Rogers and Soros helped steer the fund to a miraculous 4,200% return over the 10 year span of the fund while the S&P 500 returned just 47%.'


    http://jimrogers1.blogspot.com/



    Just thought I would throw this in.
     
  2. Landru Guide Us

    Landru Guide Us Banned

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    Greenspan and the market evangelists push the financial markets to the brink of disaster by deregulating toxic securities like CDSs, and somehow, Bernanke is to blame for not fixing it all overnight.

    The good thing about Bernanke is that, being a scholar of the Great Depression, he understood the threat of deflation and how it can cause vast economic dislocation for a long period of time. If some typical GOP hack were at the head of the FED, God only knows what would have happened after the inevitable Bush Crash.
     
  3. dudeman

    dudeman New Member

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    Soros and Rogers seem to have quite different ideologies and it was surprising to me that they formed a business together (I looked up Rogers history after watching him on CNBC or Fox News a while back). However, Rogers now lives in Singapore and Soros is a Greek national (i.e. both have Run for the Hills using Ironmaiden's words). I would tend to agree with Rogers ideology far more than Soros'. Rogers logic involves pure "household finance" type logic that ignores the military supremacy of the USA with regard to retarding collapse. However, everything has a tipping point.
     
  4. loosecannon

    loosecannon New Member

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    I call bull(*)(*)(*)(*). First off it is merely an article of speculation that we were even at the brink of vast economic dislocation.

    Second, Bernanke's thesis is the basis for the axiom that in response to a depression the first and most compelling need is to save the banks and keep them lending.

    Bernanke is the reason why we did jack (*)(*)(*)(*) about the real economy since 2007 but managed to save the banks that were "too big to fail".

    It is the most ass backwards response imaginable.

    You could burn every large commercial bank in the nation to the ground and within two months new arrangements could be made to support the money supply.

    Bernanke's approach is all about saving banks from the risks of their own reckless capitalism at the expense not only of the American people and economy but at the risk of impoverishing the entire developed world.

    Nobody ever born deserves a warmer seat in hell save Greenspan. Who quit right before the shoe fell.
     
  5. DA60

    DA60 Banned

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    It is amazing how many people simply refuse to believe this.
    Banks are middle men/women and little else. They are completely replaceable.

    The feds and Fed have forced fear down their throat on this point and the masses are digesting it - even though it is costing their children/grandchildren hundreds of billions so the Fed can bail out their buddies.
     
  6. loosecannon

    loosecannon New Member

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    Amen. Twice.
     
  7. Roon

    Roon Well-Known Member

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    I also find it quite amusing that the bailout crowd harping on about how great a top down stimulus is are indeed the same people railing against trickle down economics. Its quite amusing.
     
  8. loosecannon

    loosecannon New Member

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    You probably have no idea how correct you are.

    Tho I despised Reagan, his handling of the early 80's inflationary landslide was heroic in stature.

    If folks today had the courage of Reagan in his prime this recession would already be fading into memory.
     
  9. Roon

    Roon Well-Known Member

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    Are you suggesting the top down approach is a good one?
     
  10. loosecannon

    loosecannon New Member

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    No. There are no good approaches on the table.

    But if you are stuck with our current paradigm then following the Reagan formula would be the best approach: allow inflation to reside in double digits until we regain competitiveness and then apply fiscal stimulus as needed to spark a recovery.

    Any stimulus is voodoo economics. But if you are gonna go that route, do what actually works.
     
  11. Roon

    Roon Well-Known Member

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    It wouldn't work in our current situation though, China has their currency pegged with a lot more productive capacity than we do. Our Exports will never reach a point of significance with that going on.
     
  12. liberalminority

    liberalminority Well-Known Member

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    Mr. Rogers is wrong in this instance, another recession plays into the republican agenda as they are built upon the use of fear mongering.

    Printing money in a responsible way as Bernanke is doing is building the economy by plugging money into the banks to give loans and pay off debts.
     
  13. liberalminority

    liberalminority Well-Known Member

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    They have to play by the republican handbook to fix a republican problem.

    If the free market was properly regulated none of this would have been neccessary.
     
  14. Roon

    Roon Well-Known Member

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    lol. So Democrats, with a democratic majority in both the house and the senate as well as controlling the white house (At the time of the "stimulus/bailout") had to play by the republican play book?

    ROFL. This is getting good.
     
  15. liberalminority

    liberalminority Well-Known Member

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    Bernanke was appointed by republicans, he still has his job to correct mistakes made by republicans.
     
  16. DA60

    DA60 Banned

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  17. liberalminority

    liberalminority Well-Known Member

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    yes he still has his job in order to correct mistakes he made working under republicans.

    if President Obama nominated another chairman it would be easier to blame democrats for the slow progress but since he was from a republican they cannot attack him the same way.
     
  18. DA60

    DA60 Banned

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    And which mistakes under Bush Jr. is he specifically correcting since Obama took over?
     
  19. loosecannon

    loosecannon New Member

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    I hear you, but there is a catch. China is deadly afraid of inflation because they think it could cause social upheaval inside their nation.

    Inflation is already above 5% in China this spring due to rising commodity prices, which are denominated in dollars.

    We have control over China's inflation rate as long as they maintain the peg. The problem is that everybody else on earth is in a race to debase their currencies as well which reduces our ability to sink the dollar faster than they can sink their Euros, yen, drachmas, pesos and real.

    But China is gonna have to ease off that peg soon, or their own people are gonna put a stink on the party in power.

    That's why the upheavals in the ME so scare the Chinese. They fear it may be contagious.
     
  20. liberalminority

    liberalminority Well-Known Member

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    this is why china began shifting away from the dollar in the first four months of this year.

    the reserve managers in china have began to diversify
     
  21. loosecannon

    loosecannon New Member

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    They did that 18 months earlier too and then they reversed their dollar holding momentum.

    The deal is tho that the mechanism by which they peg their currency to the dollar is by buying US dollars and bonds as reserves. Once they quit buying and holding dollars their currency floats, at which point they won't have to worry about inflation for a while and we won't have to worry about a slow recovery.
     
  22. Shanty

    Shanty New Member

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    You mean Volcker's handling of it was heroic.
     
  23. Prohobo

    Prohobo New Member

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    WHAT - you are kidding right?

    First - Greenspan can NOT draft or change any regulation, Congress does this.

    Second - Greenspan LOWERED interest rates after the dot.com implosion to spur lending - it worked and created a housing boom and credit spending.

    Third - Bernanke is doing the EXACT SAME THING as Greenspan. He lowered rates - even lower than Greenspan and he is now printing money to fund government spending.


    How can you be critical of Greenspan (who lowered rates) and not Bernanke (who is following the exact same monetary policy)?

    What you say - makes little to no sense.

    You either disagree with both or you agree with both. You can't have it both ways - that is just beyond silly, it's blind to the truth.
     
  24. Prohobo

    Prohobo New Member

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    He is not JUST printing money, is is LENDING money to the government.

    We are DOUBLING DOWN. The Fed and Government are EXPANDING their Balance SHEET!

    It's one thing to create monetary inflation, it is another to lend to yourself.

    Congress, Treasury, and the Fed have moved into the realm of fantasy land and only foreign nations are calling our BS out!

    "Printing money in a responsible way..." - you ARE kidding with that.

    Please tell me this is sarcasm!
     
  25. Prohobo

    Prohobo New Member

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    We do not, nor have we ever had - a FREE MARKET.

    What is a GSE? That is not a free market.

    Who let the GSE's leverage 100:1? That is not a free market.

    Why can't insurance companies compete across state lines? That is not a free market.

    Why can't we buy drugs from Canada or Europe (same drugs and same manufacturer)? That is not a free market.

    Why doesn't the government let failed banks and companies fail - we have bankruptcy court for a reason? That is not a free market.

    Why does the Fed FIX the rates? That is not a free market.

    Why do we pay farm subsides? That is not a free market.

    Why do we tax the crap out of imports (tariffs)? That is not a free market.

    Why do we impose federal corporate laws on business practices? That is not a free market.

    Why do unions get protections and business don't? That is not a free market.

    Why are we limited in retirement investment plans? That is not a free market.

    Why do we HAVE to wear seat belts, but we don't get premium breaks? That is not a free market.

    Why do some taxes only serve one part of a society and not another? That is not a free market.

    Why do we have to report transactions larger than $10k to the government? That is not a free market.

    Why did the citizens have no say in removing the gold standard to a fiat currency? That is not a free market or democracy.

    I can go on forever.

    We live in a LIMITED - Government Controlled - Market. It is CERTAINLY not a FREE MARKET.

    Don't blame the Free Market - the watch dog was Congress - they failed over and over and over.
     
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