Jim Rogers day of reckoning is coming, according to the billionaire perma bear investor’s latest interview.
The next crisis will make the Fed panic which is when Jim Rogers day of reckoning will play out in the form of a loss of confidence in the central bank.
“When the next crisis arrives the Fed will panic, they will cut rates, buy stocks. The Bank of Japan creates money every day and buys bonds and ETFs so there are still things that they can do and they will,” said Jim Rogers. But Jim Rogers also warns that “they don’t know what they are doing, they will panic and when they panic they will do everything that they can to save the world”.
“When the next crisis arrives the Fed will panic, they will cut rates, buy stocks”
Jim Rogers day of reckoning will play out when investors realize that the central bank is out of life-rafts
Quantitative easing as a policy to prop up asset prices is already experiencing the law of diminishing returns.
Why have stocks not rallied despite President Trump’s suggesting that the Fed should implement Q4? Jim Rogers believes that QE rally will eventually fizzle out.
“Markets will rally for a while but eventually they will say we don’t play this game anymore, we know that this is not going to work, we now that this is a scam and then we will have a big bad bear market” said Jim Rogers.
When will Jim Rogers day of reckoning come about?
“My expectation is that it would certainly be within a year or two we are getting closer if nothing else. Very close,” said Jim Rogers.
“It has been over 10 years since we have had a bad bear market The previous Fed Chair Janet Yellen said we are never going to have financial problems again. We have solved the problem,” added Jim Rogers.
“Markets will rally for a while but eventually they will say we don’t play this game anymore, we know that this is not going to work, we now that this is a scam and then we will have a big bad bear market”
What signs could give investors a heads-up before Jim Rogers day of reckoning strikes?
Jim Rogers explains that the way these things work is that they start where we are not watching.
“In 2007 Iceland went bankrupt nobody paid attention than a few months later Ireland went bankrupt, later Bear Stearns went bankrupt. Several weeks later Northern Rock, a very large British bank, went bankrupt and then a few weeks after that Lehman Brothers went bankrupt,” said Jim Rogers.
Jim Rogers day of reckoning will rock the marketing in a series of waves until everyone realizes that there is a crisis
It was only after the collapse of various banks that “everyone knew that there was a problem,” said Jim Rogers. This evolved over a few months”, he added.
What will be the catalyst for the next crisis or Jim Rogers day of reckoning
“It will starts where we don’t notice until it finally makes the evening news,” said Jim Rogers.
“I own a lot of USD even though the USD is a terribly flawed currency. America is the largest debtor nation not only in the world but in the world’s history and the debt are going up very fast every year. But USD still has safe-haven status when things get worse more people will buy the dollar” – Jim Rogers
Jim Rogers day of reckoning is already building up towards the big collapse
“It has already started” argues the billionaire investor. Turkey, Venezuela, Argentina, Lathia went broke so too did banks in India. But all these are very small markets. So not many people notice or care. So it has already in some places, it just doesn’t make the news” said Jim Rogers.
Brexit and the deteriorating EU Atlantic rift could make it worse when we have the crescendo argued Jim Rogers.
If Jim Rogers day of reckoning is already playing how then is the billionaire investor sheltering his portfolio?
“I own a lot of USD even though the USD is a terribly flawed currency. America is the largest debtor nation not only in the world but in the world’s history and the debt are going up very fast every year. But USD still has safe-haven status when things get worse more people will buy the dollar” said Jim Rogers.
“It could even turn into a bubble, I hope when it turns into a bubble I’ll be smart enough to get out. Next time things are going to be so bad that people will question everything”, he said.
“Countries such as China, Russians, Persians are trying to find an alternative to USD”, said Jim Rogers.
“My plan is to sell my dollars and perhaps put my money into Renminbi,” he said. Jim Rogers has also been holding gold since 2010.
“China is going to be the next great country in the world in my mind there is no question about that” – Jim Rogers
What will the world look like after Jim Rogers day of reckoning?
“China is going to be the next great country in the world in my mind there is no question about that” said Jim Rogers.
“China has been preparing for this for the last forty years. “But that doesn’t mean that there won’t be setbacks. America became the most successful country in the 20th century but along the way, we had a civil war we had Depressions, massacres in the streets. America had many problems but became very successful. China has problems, too much debt you are going to see bankruptcies in China there will be a setback but China will be a most important country in the 21st century, That means that many Asian countries will benefit just like Canada benefited from America so I am optimistic about Asia”, said Jim Rogers.
Jim Rogers still reckons that worse economic crisis will play out in his life because there is too much debt.
“Be careful very careful, a lot of people will not survive an economic collapse” said Jim Rogers.
“Eventually countries, peoples society will open again and progress will come back but there will be problems along the way. History shows us there are always problems, wars, recessions, life is not always good” said Jim Rogers.
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