Jim Rogers: Major Crash Ahead For U.S. Investors… “I don’t trust the data from any government, including the U.S., Rogers said. “We know that governments lie to us. Everybody’s printing money, but it cannot go on. This is all artificial.”
Jim Rogers: Major Crash Ahead For U.S. Investors
MoneyMorning ^ | 25 February 2013 | Terry Weiss
Posted on Monday, March 11, 2013 7:09:06 PM by Lorianne
Despite the current stock market rally, legendary investor Jim Rogers say the U.S economy is poised for a major crash and is warning investors to protect themselves immediately.
“I don’t trust the data from any government, including the U.S., Rogers said. “We know that governments lie to us. Everybody’s printing money, but it cannot go on. This is all artificial.”
Rogers, who for years has been an outspoken critic of the Feds policies of “Quantitative Easing” says all the money printing is creating false hope that we are in the middle of some kind of super bull market.
But in reality, he says, “we’re living in a fool’s paradise.”
Is the U.S. Becoming a Banana Republic
TMO ^ | 3-5-2013 | Michael Pento
Posted on Tuesday, March 05, 2013 3:07:16 PM by blam
March 05, 2013 – 02:40 PM GMT
By: Michael Pento
It is sad to say there are just two reasons why the U.S. is not yet a banana republic. The first reason is that the US dollar has not yet lost its world’s reserve currency status, which is helping to keep interest rates at record low levels. If the dollar, yen and euro were not involved in a currency war, the dollar’s intrinsic decline would become much more evident, causing domestic inflation to soar, and our bond market to immediately collapse.
However, the perpetual erosion of fiat currencies will eventually cause investors to eschew the sovereign debt issued by the over-indebted nations of America, Japan and Europe—even if the dollar’s decline does not manifest itself against the euro and the yen.
The other reason why we have not been declared a banana republic is because America is not located between the Tropics of Cancer and Capricorn.
Just think about what happened after Hurricane Katrina. Did the economy of New Orleans bounce right back? No, there are some areas of New Orleans today that still look like war zones.Well, this disaster is much worse.The truth is that this is going to be one of the defining moments in the history of Japan. Hundreds of miles along the coast of Japan have been absolutely devastated.
Authorities are finding it difficult to even get food and water into some areas at this point.Even before this great tragedy Japan was one of the nations that was on the verge of a national economic collapse. Their economy had been in the doldrums for over a decade and their national debt was well over 200 percent of GDP. Now the Japanese economy has experienced a shock from which it may never truly recover.The Bank of Japan is already flooding the Japanese economy with new yen, and so we may indeed see some impressive “economic growth” statistics at the end of the year.
But just because lots more yen are being passed around does not mean that the Japanese economy is in better shape.The truth is that a tsunami of yen is not going to undo the damage that the tsunami of water did. A massive amount of Japanese wealth was wiped out by this disaster. An economy that was already teetering on the brink is now very likely going to plunge into oblivion.It is fine to be optimistic, but the cold, hard reality of the situation is that this is a knockout blow for the Japanese economy. The extent of the devastation is just too great. This truly is a complete and total nightmare.