Jim Rogers: Abolish the Fed

rogers Jim Rogers’ CNBC interview today is a classic of its kind. A combative and voluble Rogers goes after the Fed in a major way, arguing that our aversion to recessions, willingness to bail out banks, and general over-confidence in the Fed’s ability to use rates and the money supply to micro-manage the economy are creating massive problems ahead.

Agree or disagree, it’s provocative stuff. Check it here (and I really wish CNBC made it easier to embed such videos in blogs).


  1. Adam Smith says:

    Is Rogers a complete loon? He berates the Fed, yet he’s moving to China, a country with a completely controlled economy, including monetary policy. Which way do you want it Jimbo.
    The blame should be with Greenspan, who started and perpetuated both the dotcom and the mortgage bubbles.
    Please, if anyone should resign, it’s Jim Rogers from CNBC. When are the movers coming anyway?

  2. Too late. Jim has already moved. He did the interview from Singapore.

  3. I’m not sure why he’s so crazy. I feel like people approach Rogers like they do Ron Paul. He’s like this annoying guy other candidates (managers) wish wasn’t in the race, but mostly because his points are all valid, and yet it’s not what anyone wants to talk about. Or it’s not how the unspoken rules of rhetoric and fund sales dictate you talk to viewers. I actually like his analogy with the forest fires, given that the markets are down this year and we are running into another bottom in interest rates. You’d think the Fed was running out of big bullets to throw at the problem, and all the while the debasement of the dollar prompting more and more people to run for commodities. Now you’re starting to see a bunch of “oil is a bubble” stories and whatnot, suggesting that the oil markets, or commodities broadly, are somehow disconnected from the rest of the market, currencies, etc. I forget who it was a couple of days ago who brought up the fact that in the early 90s you had a bunch of banks fail and you have had something like three so far this time around. Oh yeah, it was Wilbur Ross. The FDIC is hiring ex-staffers from that time to help through financial institution failures now as well. I might not vote for Paul, but Rogers has made a lot of dough in the last couple of years and I’d for his opinion over anyone buying BSC on the hope the Fed works it out soon.

  4. Rogers is dead on nails with everything he had to say – and gss is right that people don’t want to hear it. Did you hear how many laughs he got from the interviewers? They view him more as entertaining than insightful.
    “Socialism for the rich” was his best line. If I’m a poor minority citizen in the US, I am freaking out about the Fed trying to bail out the banks while I can’t heat my apartment.
    $12 Billion per month for Iraq, $200 Billion for bankers – but “jack” for health care and education?
    If greed and Fed policies don’t bring down the US economy, a citizens revolution will.
    The clock is ticking on the US economy. Ben and the gang can do nothing more than delay the inevitable because they are in check mate. You can’t find a credit/liquidity crisis and inflation at the same time.
    If you need further evidence, look no further than the whole 1-day rally in the market + gold sitting at $US 985. If the Fed had saved the day, gold would have given back a significant amount of the gains it has made over the past few months. Instead, it only got stronger.
    Things are going to get uglier. My PYMWYMI (Put Your Money Where Your Mouth Is) is for sub-10,000 Dow by November.

  5. Jim Rogers is annoying, entertaining, kookie, and perhaps most importantly correct.
    If you have read or listened to him over the years, he has toured the world looking at currency flows and government structures from Zimbabwe to Singapore. He has also made a mint for Soros and for himself since.
    The point is, and there really can be no refuting it, banks lent where they shouldn’t and it is certainly NOT the Fed’s job to bail them out.
    Bernanke is not long for his position (I keep hearing that he will be stepping out asap)- because he is the wrong person at the wrong time. We don’t need money from helicopters or Fed interest rates down to 0%- we just need to wade through a slowdown while banks regain their senses. The more he does to destroy the dollar, the more inflation he makes us dig out from.
    People- every global commodity is at a high (and it is excruciatingly so for us buying in $), because the rest of the world did not have the same foolishness with their lenders. Americans think that just because we have an issue the rest of the world will wait for us to figure it out. China is building and paying for these commodities with or without a US recession or Fed bailout. Every day the dollar depreciates is one more day of the US suffering higher costs.

  6. Dirk Smebble says:

    Last time I looked, Singapore is not in China. Someone get the man a map and an an emergency room kit. He’ll need it.

  7. When I interviewed Jim Rogers a few months ago I pointed that geographic issue out, i.e., that Singapore isn’t China. Jim said, and I’m paraphrasing here, that Singapore was less polluted and had better school for his daughter.
    Read in whatever irony you would like, of course.

  8. Hey Kedrosky,
    Ron Paul called.. said he wanted every. single. one. of his talking points back.
    Oh, but he’s the kook! LOL. Please. The MSM did a full court press against him for saying exactly what Jim Rogers just said.
    “socialism for the rich”… does have a nice ring to it doesn’t it