Thread: Jim Rogers: More Pain for the Greenback, and the Failure of

Jim Rogers: More Pain for the Greenback, and the Failure of the Federal Reserve

Currencies / US Dollar
Apr 08, 2008 - 02:30 PM

By: Keith_Fitz-Gerald


SINGAPORE - By bailing out Wall Street and applying "band-aids" to the economy, the U.S. Federal Reserve may well be causing its own downfall - even as it hastens the demise of the greenback as a viable global currency, investment guru Jim Rogers told Money Morning during an exclusive interview.

Because of such strategic missteps, U.S. consumers could be facing a long and painful economic malaise, similar to the "lost decade" of 1990s Japan, or the stagflation-riddled 1970s in the United States, Rogers said.

Make no mistake: If that happens, there are two clear culprits - current Fed Chairman Ben S. Bernanke, and his predecessor, Alan Greenspan.

Bernanke "and Greenspan together will probably bring [about] the end of the Federal Reserve," Rogers said during the interview in Singapore. "We've had two central banks in America that failed [and] this third central bank will probably fail, too, because of Bernanke and Greenspan. The Federal Reserve [just] put $200 billion more onto its balance sheet of mortgages . Now I don't know how big they can expand their balance sheet, but if they keep doing it, there's only so much - and they just bought Bear Stearns ( BSC )."

Rogers first made a name for himself with The Quantum Fund, a hedge fund that's often described as the first real global investment fund, which he and partner George Soros founded in 1970. Over the next decade, Quantum gained 4,200%, while the Standard & Poor's 500 Index climbed about 50%.

It was after Rogers “retiredâ€

AS7,

When I saw the title under Current Group Discussions I knew it had to be you. Do you ever find anything else besides gloom and doom stories? I'm not saying you're not right; but it does get very tiring. I would suggest that you come up with some postings on how to survive those kind of troubles. At least that would get the discussion off of high center--and moving ahead.

We need to hear about these things. This is very serious stuff.

Mr. Rogers would be on the FOX stock shows on Saturday till he planned his move to Singapore. I enjoyed reading the interview with him and he forecast continuing financial concerns for the United States.

Psalm 91