Jim Rogers is hoarding cash because he is anticipating the worst bear market of his lifetime.
“I have a lot of cash because I expect the next sell-off to be the worst in my lifetime,” he said.
“America and the world are long overdue for a problem,” Jim Rogers added.
Unprecedented G7 countries’ debt levels are why Jim Rogers is hoarding cash
But a provocative question comes to mind.
“I have a lot of cash because I expect the next sell-off to be the worst in my lifetime”
JIM ROGERS
Why hoard cash, which can be created by the central banks, with keyboard strokes?
If Jim Rogers is worried about the ever-increasing debt financed by the ever-increasing creation of the currency resulting in the diluted purchasing power of the currency. What is the benefit of hoarding cash?
The average cost of a car in the 80s was around $7,600, and in 2024 it is $48,000. Cash has not held its value over time due to inflation, and with spiralling global public debts, why should we expect that trend to change?
“The reason I have a lot of cash is that I am expecting the worst sell-off in my lifetime because the debt has gone up everywhere,” he said.
But in the 2020 global lockdowns, the economy was closed. The US Public Deficit was 22 trillion in 2019, and two years later, it spiralled to 28.5 trillion. In short, the US Public Deficit grew by over 6 trillion dollars in two years during the Greatest bull market where cash was trash.
“The reason I have a lot of cash is that I am expecting the worst sell-off in my lifetime because the debt has gone up everywhere”
JIM ROGERS
The Takeaway. The only factor in the equation that matters is central bank liquidity.
“Even India has debt now, and you should be worried. I am worried. I am waiting for the collapse because I know it will be bad,” he said.
But Jim Rogers could be waiting for Godot because if Fed Chair Powell decides to take his boot off the neck of the economy and move monetary policy from restrictive to accommodating, the crash of our lifetime will not happen.
“The interest rate differential between BoJ tightening and the Fed procrastination to cut in July collapsed the 20 trillion yen carry trade”
– Wealth Training Company
Jim Rogers is hoarding cash, and whether he scoops up the bargain of his lifetime in a crash will be decided by central banks
The interest rate differential between BoJ tightening and the Fed procrastination to cut in July collapsed the 20 trillion yen carry trade.
The risk of borrowing Yen at a higher rate and investing in US stocks when the Fed is dragging its feet on rate cuts when the US economy is already showing signs of stumbling has shut down capital flows from the carry trade and created the latest liquidity crisis.
Whether the recent market rout turns into a market crash depends on what the Fed chair Powell does next
The 20 trillion yen carry trade is half done, and without an emergency Fed rate cut, the current market rout could morph into a disorderly crash.
Emergency Fed rate cuts are not typical, yet they have been three since 2000.
March 2020 onset of the COVID-19 pandemic, the 2007-2008 financial crisis and September 11, 2001 terrorist attacks.
