Jim Rogers: Fed Will 'Save the Market' One Last Time
Image: Jim Rogers: Fed Will 'Save the Market' One Last Time Jim Rogers (AP photo)
By FJ McGuire | Tuesday, 01 Sep 2015 08:47 AM
The Federal Reserve will probably "save the market one more time" by artificially printing money, but the next big rally will be the last before an economic day of reckoning arrives, international investor Jim Rogers told Newsmax TV.
The nation’s central bank will "buy more bonds, they'll do something and then we'll have another big rally but that's going to be the last rally," the chairman of Rogers Holdings told "Newsmax Prime."
"Maybe they can save the market one more time, but the world is starting to give up on all this artificial money printing," he said.
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"It's happening in Japan, Europe, Britain and America. It's never happened before in recorded history that all the major central banks are printing a lot of money," he said.
"Printing money" (quantitative easing) is the term used to describe a central bank creating money and then injecting that into the economy. Six major central banks have openly printed money in the last decade: the United States, European, Switzerland, British, Japanese and Chinese central banks, explained Craig Harewood, investment director at OurInterest Inc.
"That's what happened back in 2008. The Federal Reserve came running to the rescue, bailed out the banks and now we're all going to have to pay the price," Rogers said.
"They don't know what they're doing down there. They're academics and bureaucrats," he said. "They think they're smarter than the rest of us. They're not and we're going to pay the price."
Rogers spoke as Wall Street ended lower on Monday and wrapped up its worst month since 2012. In August, the S&P lost 6.3 percent, the Dow fell 6.6 percent and the Nasdaq declined 6.9 percent.
He said another economic downturn is inevitable – history proves another is coming.
"This is not going to end well. You should be prepared, you should be knowledgeable and you should be worried," he said.
"We've had economic slowdowns every four to seven years. We're going to have them again. It's been six years since the last time. So start getting worried," he said. "Maybe it'll be seven, maybe it'll be eight years this time but it's going to come," he said.
"In America, we're destroying the people who save and invest for the future. Interest rates at zero. A lot of people save their money, worked hard all their lives, and now they're getting nothing to show for it," he said.
"First of all, you got to stop destroying the people who save and invest for their future, you got to let the market take its course and you need to cut spending," he said.
"If you do that, then you could cut taxes. We would all have a lot more money in our pockets and the economy will get better," he said.
Regardless, he says you can’t blame China.
"I hate to see politicians start looking for scapegoats and you know this always happens when things go wrong. They blame foreigners. America is the largest economy in the world. How can you blame this on China? The American stock market has been going up for six years based on artificial money printing and the Federal Reserve."
He said the blame can be found right in Washington, D.C.
"Those guys have been printing staggering amounts of money and running up huge amounts of debt."
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