Jim Rogers sees unprecedented times.
“We have never seen anything like this in recorded history,” he said.
He believes bonds are in a bubble, property certainly is in a bubble and stocks are not in a complete bubble yet.
Jim Rogers is not short anything because he knows how much money central banks can print, and that worries him.
He likes commodities, even though in the past few months, precious metals are near year-time highs.
Debt-fueled finance; Jim Rogers sees unprecedented times.
Maybe the rigamorphis stage of a debt-fiat currency system has approached.
“We have never seen anything like this in recorded history”
JIM ROGERS
In its early phase, a credit-based system fuels consumption and investments, and in its terminal stage, more currency comes into being to support the debt, which keeps the system afloat. When central banks print currency to keep banks solvent and buy the bonds that investors reject, the game is nearly over.
The greatest bubble in the history of finance is the creation of currency to buy bonds. The treasury bond crash of 2023, the worst ever recorded, was a red flag for investors.
Jim Rogers sees unprecedented times and believes the worst bear market in his lifetime lies ahead
“With all the money printed to finance debt, the only asset class I like is commodities,” he said.
“I own stocks in places like China and Russia, Japan and other places,” he added.
But he said he is in no hurry to buy anything unless it is good.
“I know that this is going to end very badly,” he said,
In 2008, the market crashed due to a crisis in the debt market.
Since 2008, debt skyrocketed everywhere.
“With all the money printed to finance debt, the only asset class I like is commodities”
JIM ROGERS
Even China has debt now. China didn’t have a lot of debts 15 to 20 years ago. Who is going to save us,” he asked.
Yellen’s recent trip to China in April was about pleading with China to reverse their treasury sales and start buying US paper.
But think about it. Why would China keep buying US treasuries so that the US can build missiles to point at China?
Japan, the largest foreign holder now of treasuries, recently sold a chunk of its holdings to fund record Yen intervention.
So, the imbalance in the US treasury market could worsen as demand wanes and the supply booms due to a record-level US public deficit, which will soon hit 35 trillion dollars.
“When you have bad times, it ends up in shooting wars” – Jim Rogers
Jim Rogers sees unprecedented times, a currency crisis and an economic collapse ahead
“You can have one, and it leads to another. In the 1930s we had both and then a shooting war,” he said.
“When you have bad times, it ends up in shooting wars,” he added.
He notes that the 2008 crisis was a debt crisis, and since then, the debt has more than doubled.
“Some people came out very rich in the 30s, but most lost huge amounts of money,” he said.
Jim Rogers sees unprecedented times, but investors who rotate capital from debt assets into non-debt assets could prosper from the calamity.
He sees another blowoff top before the biblical bust in bonds and social unrest.
