Jim Rogers: 'Abolish' the Incompetent Federal Reserve
Friday, 29 Nov 2013 01:02 PM
Asked by RT television network what he'd do if he was named chairman of the central bank, Rogers said, "I'd abolish the Federal Reserve, and then I'd resign."
The world has survived just fine without central banks for most of its history, he notes.
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"America has had three central banks in our history. The first two disappeared," Rogers said.
"This one will too, because they keep . . . leveraging up the balance sheet. They keep making mistake after mistake. They keep printing money."
The result?
"This is going to self-destruct, unless the politicians say this thing is a mistake, let's get rid of it," Rogers said. "It's more likely, though, that it will self-destruct."
When it comes to stocks, which are trading at or near record highs, "we're certainly going to have a crash someday — all this artificial sea of liquidity," he said.
But while a correction could come soon, Rogers doesn't see an imminent plunge. "With all the money printing and spending in the world, this could go on for a while," he said.
Former Federal Reserve Chairman Alan Greenspan doesn't share Rogers' view that stocks are in a bubble.
The equity premium, "a measure of what the average investor requires the rate of return to invest in common stocks [is] still way below normal,” he told Fox Business Network.
"There are a lot of things that can go wrong,” Greenspan said. "But to say that the market is bubbly and in a position where it could conceivably create a serious problem, I think is overstating it."
Let's be sure to remember that Greenspan gave us the housing bubble all the while suggesting there was no serious "bubble". He was but another party giving FED chairman who refused to remove the spiked punchbowl when everyone was blind drunk.
NYTIMES HISTORY OF O'CARE WEBSITE PROBLEMS: Can they, will they solve this mess? Is it any wonder that socialist governments always fail, sooner or later? It is apparent from this story that the incentives when the government is involved are always convoluted. This is largely because there is no profit incentive for the government and with no profit motive and no pricing mechanism delivered through competition, what you end up with is ever increasing deficits and increasing taxes to cover the perpetual shortfalls. This is all a textbook case of socialisms failure to deliver on its promises, and should be a teaching moment for all those who have been infected with collectivism of one stripe or the other.
THANKSGIVING WITHOUT THE GOVERNMENT: This is what it would be in a sane world
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NYTIMES HISTORY OF O'CARE WEBSITE PROBLEMS: Can they, will they solve this mess? Is it any wonder that socialist governments always fail, sooner or later? It is apparent from this story that the incentives when the government is involved are always convoluted. This is largely because there is no profit incentive for the government and with no profit motive and no pricing mechanism delivered through competition, what you end up with is ever increasing deficits and increasing taxes to cover the perpetual shortfalls. This is all a textbook case of socialisms failure to deliver on its promises, and should be a teaching moment for all those who have been infected with collectivism of one stripe or the other.
THANKSGIVING WITHOUT THE GOVERNMENT: This is what it would be in a sane world
OBAMACARE IS THE CAMEl's NOSE UNDER THE TENT: This obamonation changes everything, everything
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