Not everyone is a fan of the Federal Reserve System, or any of its chairmen.
The Fed doesn’t have any idea what it is doing, and this ineptness will be “the ruin of us all,” says Jim Rogers, co-founder of the Quantum Fund, and perhaps the most charming man in the financial world.
Speaking in an interview with Bloomberg on Tuesday, Rogers explained that the United States central bank has driven interest rates to historical lows, causing the rest of the world to follow down the same path. This monetary policy experiment has also enabled debt to skyrocket unlike we have ever seen before.
“This is all going to end very, very badly,” said Rogers. “You don’t have to worry. You have job security because somebody is going to have to report on this disaster.”
The anchor went into defense mode and came to the aid of Ben Bernanke and Janet Yellen. Rogers didn’t have any of it, though.
“I know what would have happened. We would have had some more bankruptcies, we would have had a horrible year or so, and then everything would be fine now. We’re all sitting here wondering how this is going to end. I know this is going to end badly,” added Rogers.
“Propping up dead companies, propping up zombie banks is not the way the world is supposed to work.”
He noted that after nine years of supposed growth the world doesn’t have much to show for it, citing staggering amounts of debt, pension funds going broke and insurance companies folding.
Rogers also touched upon Russia, saying that investors should begin to buy Moscow once oil prices bottom out. Scotland was discussed, noting that England and the British pound are doomed if the Scots leave because of the oil.
This interview proves that Rogers still remains one of the more entertaining guests on these business talk shows.
Jim Rogers reminds people that the recession after WWI was killed by doing precisely the opposite of what we’re doing now. It was a very short downturn, as compared to the Great Depression, which lingered for more than a decade.
Good stuff!