Jim Rogers warns Federal Reserve will bail out stock market one more time

With intense volatility in the stock market, will the Federal Reserve bail out investors one last time with more stimulus and money printing? One contrarian investor thinks so.

Jim Rogers, chairman of Rogers Holdings and bestselling author of “Hot Commodities,” spoke in an interview with Newsmax TV and warned that the United States central bank would “save the market one more time.”  This will be accomplished by artificially printing money. However, this would be the last time before a day of economic reckoning, or another economic collapse unlike 2008/2009.

Despite the Fed likely to print money again, Rogers thinks the world is starting to give up on the entire concept of money printing because it doesn’t work.

“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. “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 added that central banks don’t know what they’re doing. Since they’re all academics and bureaucrats they tend to believe they’re smarter than everyone else, says Rogers. “They’re not and we’re going to pay the price.”

With that being said, another catastrophic economic downturn is likely going to happen since history suggests another one is on the horizon.

“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. Maybe it’ll be seven, maybe it’ll be eight years this time but it’s going to come.”

In the U.S., says Rogers, the federal government and the Fed are harming those who save and invest for the future with zero percent interest rates. Those who have saved money their entire lives and lived within their means, Rogers notes, are “getting nothing to show for it.”

“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 added. “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.”

Although there are certain politicians and presidential candidates blaming China for the recent market crisis – ahem, Donald Trump, ahem – Rogers thinks China shouldn’t be blamed for anything. Instead, the blame should be placed on Washington.

“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,” Rogers averred.

“Those guys [Washington] have been printing staggering amounts of money and running up huge amounts of debt.”

At the time of this writing, the Dow Jones is in the red by nearly 300 points, while the Nikkei ended the day down by more than 700 points.