“I do not know if they [the Fed] will announce it… I know they are going to print more money. They already are. If you look at their balance sheets, you will see that something is happening, assets are building on their balance sheets and they are not coming from the tooth fairy.”
Jim Rogers - Billionaire/Commodity Guru
Rogers recently made this statement to India’s Economic Times. He continued by asserting his belief that the Fed is “a little embarrassed” to officially confirm their engagement in QE3 after QE1 and QE2 failed.
Furthermore, Rogers says he is confident that they are all going to print money even though it is the wrong thing to do. Unfortunately, it is “all they know how to do,” according to Rogers.
Last week, Bernanke gave no direct indication of a coming QE3 at the Jackson Hole speech, but no one was surprised. Instead, Bernanke used his energy and speaking time attempting to explain the ways in which QE1 and QE2 were effective.
We’re not sure who’s buying those lines, but we know Mr. Rogers isn’t one of those suckers.
Presumably, America’s central banks are secretly printing money already to avoid “getting egg on their face again.”
Meanwhile, the eurozone crisis and our own debt dilemmas remain stagnant. It’s truly mind-boggling that the Federal Reserve is still attempting to solve the debt problem by instigating more debt by giving consumers a false sense of confidence by printing more ‘Monopoly Money.’
Investors finding trouble with the Western stock markets – the Euro Stoxx 50 index is down 3.1pc from its year-high in March after falling 18.8pc – are turning towards other emerging markets for solace, especially Asia.
Still, India and China both have some serious risk-factors associated with them…Rogers is short on India and says China is headed towards a “hard landing.”
Once again, investors are seeing why gold and other precious metals are the only real safe havens in these unfavorable present-day market conditions. Gold is hovering around the $1,689 range and is likely to crawl up again once governments across the globe reinstate stimulus measures.
But don’t look to the central banks to help out with the mess the global community is in. They will just print more money as gold prices rise in response.
Oil prices are predicted to rise based on supply limitations as well. If our nation does end up going to war with Iran, expect oil prices to surge to unprecedented levels.
Keep your eyes on commodities and precious metals, not the Fed. You already know what they’re doing – we’ve all already seen it twice before.