The global economy is weakening and central banks all over the world have tried to heat things up with quantitative easing, stimulus and even subzero interest rates. Despite the number of attempts to intervene into the economy, an economic collapse is approaching, and the central banks are to blame.
These are the words of Jim Rogers, the famous international investor.
Speaking in an interview with CNN Money, Rogers averred that everyone is “going to pay a horrible price for the incompetence of those central bankers.” He added that the academics and bureaucrats don’t understand what they’re doing.
Rogers explained that central bankers are trying to think of any conceivable action to prop up financial markets. But, says Rogers, it’s not working. He thinks unconventional monetary policy maneuvers will help ignite a stock market rally soon, but then that will result in financial armageddon sometime in 2017.
One of the policy tools that he thinks will help establish “a disaster in the end” is negative interest rates (SEE: Will negative interest rates dominate monetary policy in 2016?). As central banks implement this strategy, Rogers doesn’t think they’re working. Instead, these types of monetary bullets will only rescue stock markets and ensure stock brokers keep their Lamborghinis.
“The mistake they’re making is, they’ve got to let the markets sort themselves out,” Rogers said.
“It’s been over seven years since we’ve had a decent correction in the American stock market. That’s not normal … Markets are supposed to correct. We’re supposed to have economic slowdowns. That’s the way the world has always worked. But these guys think they’re smarter than the market. They’re not.”
In the end, according to Rogers, you should be very worried, very concerned.
Leave a Comment