The Federal Reserve is Going Bankrupt According to Jim Rogers
Jim Rogers, who co-founded the Quantum Fund with George Soros, truly believes Federal Reserve Chairman Ben Bernanke will end “Quantitative Easing“, as planned, at the end of the month. Ben Bernanke says he’s going to stop the Fed’s quantitative easing at QE2 — and he takes him at his word since he’s said it so many times, explains Jim Rogers.
If there’s any truth to the long held market cliche “Don’t Fight the Fed” — then Rogers knows it.
Jim Rogers says you should reject everything you know or are told about the Fed, starting with the idea that the job of Fed chairman is an apolitical role. All Fed chairmen are political stooges, says Rogers, and Bernanke is no different and as we move closer to November 2012, he says “there’s enormous pressure to get Obama re-elected … Bernanke knows where his bread is buttered.”
Rogers dismisses Dr. Ben as just an “Ivy League Professor” who has never been right. According to Rogers, Bernanke has been out of ideas since arriving in Washington — and that’s a good thing, because what the Fed and Bernanke have done so far has sent us down a path that the economy might never recover from. The stimulus from two rounds of quantitative easing are only the most recent and public and have been likened to giving a drunk more booze to avoid a hangover, according to Rogers and many trading economic-types.
At this point, rather than just a hangover, the economic patient is headed for the morgue. Rather than a severe recession or even depression, we’ve been putting off feeling the pain, stashing a few trillion of bad debt here or there, and hoping it goes away. It won’t, in Rogers’ view.
However, all is not entirely lost as Rogers notes — the Federal Reserve, enacted in 1913 by Woodrow Wilson, was only the latest in a long line of attempts at U.S. central banking which have all ended in tears and disaster. The Federal Reserve will hopefully be gone before the country is, he says.
Tags: Bankrupt, Ben Bernanke, Depression, Don't Fight the Fed, Federal Reserve, Federal Reserve Chairman, Federal Reserve Enacted in 1913, George Soros, Ivy League Professor, Jim Rogers, Obama, Quantitative Easing, Quantum Fund, Severe Recession, Stimulus, Washington, Woodrow Wilson