Monetary Policy

Peter Schiff: Fed Will ‘Do More Damage To This Bubble Economy’ If They Raise Interest Rates In December

“Total nonfarm payroll employment increased by 271,000 in October, and the unemployment rate was essentially unchanged at 5.0 percent, the U.S. Bureau of Labor Statistics reported today…”

-“Economic News Release,” November 6, 2015, U.S. Department of Labor, Bureau of Labor Statistics website

Euro Pacific Capital CEO Peter Schiff savaged the incredibly-hyped October U.S. jobs report released last Friday in a new entry to The Schiff Report YouTube vlog that same day. Schiff, who correctly-called the housing bust and economic crisis last decade, also responded to the popular belief that the Federal Reserve will be raising the federal funds rate next month. From the video:

Everybody now has jumped to the conclusion that a December rate hike is a lock. It is a sure thing, the Fed has no excuse, they’re going to move interest rates, lift-off at last in December. And as far as I’m concerned, there’s nothing in this job report that would say that. There’s nothing here that’s going to require the Fed to raise interest rates if they don’t want to.

Why does Schiff think this? He doesn’t believe it’s part of the U.S. central bank’s game plan. He added:

See, this is what scares the Fed. Let’s assume the Fed actually does raise rates. What do they do if that rate hike, even though it’s really small, what if it prompts a stock market decline? How do they stop it? Cut rates? They’d look like fools if they do that. I mean, if the Fed raises rates and the stock market goes down, people might start believing that there’s no Yellen put. That the put is expired. And that there’s no more safety net. I mean, that could be very scary if the stock traders don’t think they’ve got the Fed to protect them. Because how can Janet Yellen protect them if she’s raising rates? She can only protect them if she can cut rates. So it’s very risky for the Fed to upset the apple cart, right? There’s an expression- “If it ain’t broke, don’t fix it.” And as far as the Fed is concerned, extend and pretend is working like a charm. Everybody believes the Fed’s about to raise rates, even though they don’t actually say they’re going to do it. So they never have to really do anything. If they get the benefit of a rate hike psychologically, they get to pretend we’ve got this great economy, but they don’t actually have to raise rates, and prove to everybody that we don’t have a great economy. So there’s a lot at stake here, and I think it’s a lot easier for the Fed to punt again, and to say, “Look, you know, it’s still possible that we’ll raise rates in March” or whenever they want to pretend.

And if Yellen and the Fed does raise rates in December? Schiff warned:

I think if the Federal Reserve actually raises rates, they’re simply accelerating the moment in time when they’ll have to cut them again. I think if the Fed raises rates, they’re going to do more damage to this bubble economy, which means they’re going to have to blow even more air to fill it back up. So if they do raise rates, that means the onset of QE 4 could happen even sooner than if they just continue to pretend to raise rates but not do it.

“Over-Hyped Oct. Jobs Report Does Not Assure Dec. Rate Hike.”
YouTube Video

Christopher E. Hill
Survival And Prosperity (

(Editor’s note: I am not responsible for any personal liability, loss, or risk incurred as a consequence of the use and application, either directly or indirectly, of any information presented herein)

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Peter Schiff Predicts ‘A Horrendous Christmas,’ ‘The Dow Is Going To Rally From Here,’ And ‘Gold Stocks Are Going To Take Off’

Euro Pacific Capital CEO Peter Schiff just added a new entry to The Schiff Report YouTube vlog Friday. Schiff, who correctly-called the housing bust and economic crisis last decade, shared some forecasts with viewers. From the video:

I think that given the lousy jobs number that we just got, given the revision to the previous numbers making them worse, given now today’s factory orders and the economic data that we’re likely to get next week, I think before long- or it’s not going to be too long- before the Atlanta Fed GDP now reflects a negative print, a negative number, for third quarter GDP. Now, if we get a negative number for third quarter GDP, I bet we get another negative number that’s even bigger for the fourth quarter. Because if you look at the trend over the last six years or so, the fourth quarter is always weaker than the third. The third quarter is a stronger quarter. And if that quarter is weak, what does that tell you about the second quarter? It’s going to be even weaker. So if we get a negative third quarter, and then we get a negative fourth quarter, well, that’s a recession. Right? Technically that’s a recession. What the Fed going to do?

This is going to be a horrendous Christmas, that’s my forecast, as far as what the retailers are expecting and what they’re going to get. This is probably going to be the worst Christmas shopping season of the recovery. And I think next year a lot more layoffs are coming…

The Dow was down as much as 250 points or so early in the morning. But then the buyers came in because they realized, “Hey wait a minute! If the Fed isn’t going to raise rates, then this party can continue for a while longer.” And the Dow finished up 200 points. That’s a 450 point move. We were almost down at the Black Monday lows. I think this was a pretty significant reversal. My guess is that the Dow is going to rally from here. I don’t know if it’s going to rally to new highs- that would be a stretch. But I think right now, given the weakness of this report, I think that you can see some strength in the U.S. stock market…

This time, if the dollar rises based on an anticipation of rate hikes, and the hikes don’t even come, can you imagine how much selling there’s going to be on that fact, when you don’t even get the event that everybody’s been waiting for? That’s going to work in reverse for gold. People have been selling gold for the same reason. “Oh, the Fed’s going to raise rates- that’s going to be bad for gold.” You know, when the Fed raised rates last time, it was great for gold, because gold rose the whole time. But imagine how good it’s going to be for gold when everybody expects a rate hike, and instead we get QE 4. I think this is going to be the biggest up-leg of the gold bull market, which means the gold stocks are going to take off if I am right, because gold stocks today are cheaper than they were when the last bull market began when gold was under $300 an ounce. They’re cheaper now with gold at $1,130 than they were when gold was $270…

“Sept. Jobs Report Confirms Weakening Labor Market”
YouTube Video

Christopher E. Hill
Survival And Prosperity (

(Editor’s notes: Info added to “Crash Prophets” page; I am not responsible for any personal liability, loss, or risk incurred as a consequence of the use and application, either directly or indirectly, of any information presented herein)

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Peter Schiff: ‘Inevitable’ QE 4 Will Lead To U.S. Dollar Crisis

On August 28, 2015, Euro Pacific Capital’s Peter Schiff spoke at The Jackson Hole Summit, “the first ever event to discuss monetary and fiscal policy at the same time as the Central Bankers are discussing policy,” according to sponsor American Principles Project. Schiff, who correctly-called the housing bust and economic crisis last decade, warned those in attendance that because the Federal Reserve isn’t allowing market forces to fix imbalances in the financial system, the United States is ultimately heading towards a dollar crisis. From the presentation:

The Fed needs to raise interest rates right now. Not because the economy can take it, but because it can’t. Because, again, it is a bubble that needs to be popped. The sooner we pop it, the better. But of course we’re going to find out that the Fed didn’t save us from the financial crisis. They simply interrupted it. And they kicked the can down the road. And we’ve now caught up to the can. And, the problem is, because we’ve delayed solving the problem- see, the financial crisis was the beginning of the solution. And the Fed interrupted it. The market was trying to fix what the Fed broke. Real estate prices coming down were part of the solution. Banks failing was part of the solution. That recession was part of the solution. And the Fed interrupted it. And instead they gave us an even bigger bubble. And now we’re going to have to deal with that…

All the real economic recovery is being prevented. The Fed has got it all dammed up with its monetary policy. But it’s afraid to release the dam because it’s going to unleash all of these forces, this creative destruction that is so necessary, because we cannot have this genuine economic recovery that would actually lift living standards and create good jobs for the American people. We can’t do that unless we allow this phony economy that’s been resurrected on the foundation of cheap money collapse. But nobody is going to allow that to happen…

And then they’re going to launch QE 4. Which nobody really understands. I think it’s inevitable. I said this from the beginning. I said that when they launched the very first round of quantitative easing that they had walked into, checked into, a monetary roach motel. That there was no way out. Once they went down this line, that we were in for the duration. You live by QE, you die by QE. I said we’d have more QEs than Rocky movies. And I think they had six of those. And of course they got progressively worse. And so I think QE 4 is going to be even worse than the last rounds. And ultimately… ultimately, where we are headed is to a dollar crisis…

“Peter Schiff at Jackson Hole Summit: The Monetary Roach Motel”
YouTube Video

Christopher E. Hill
Survival And Prosperity (

(Editor’s notes: Info added to “Crash Prophets” page; I am not responsible for any personal liability, loss, or risk incurred as a consequence of the use and application, either directly or indirectly, of any information presented herein)

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Peter Schiff: Told You The Fed Was Bluffing On Rate Hikes

I recently highlighted an example of why Jeremy Grantham, the British-born investment strategist and founder/former chairman of Grantham, Mayo, Van Otterloo & Co. (oversees $117 billion in client assets as of June 30), is one of Survival And Prosperity’s “crash prophets.”

The following also exemplifies why Peter Schiff, the CEO and chief global strategist of Euro Pacific Capital, belongs to that small group of individuals whose investment activities/recommendations I track on a regular basis.

From Schiff’s “Groundhog Day at the Fed,” published on the Euro Pacific Capital website last Friday:

Every dictator knows that a continuous state of emergency is the best means to justify tyrannical policies. The trick is to keep the fictitious emergency from breeding so much paranoia that routine activities come to a halt. Many have discovered that its best to make the threat external, intangible and ultimately, unverifiable. In Orwell’s 1984 the preferred mantra was “We’ve always been at war with Eurasia,” even though everyone knew it wasn’t true. In its rate decision this week the Federal Reserve, adopted a similar approach and conjured up an external threat to maintain a policy that is becoming increasingly absurd.

In blaming its continued inaction on “uncertainties abroad” (an excuse never before invoked by the Fed in the current period of zero interest rates), the Fed was able to maintain the pretense of a strong domestic economy, and its desire to lift rates at the earliest appropriate moment while continuing the economic life support of zero percent rates. Unbelievably, the media swallowed the propaganda hook, line, and sinker.

Over the summer it all seemed so certain. In mid-August the Wall Street Journal conducted a poll revealing that 95% of economists expected a rate hike by the end of 2015, with 82% expecting the first move to come in September. On July 29, Marketwatch reported that changes in Fed language were the “smoking gun” that made a September move a certainty. I was one of the few who publicly predicted that all the tough talk from the Fed was a bluff, and that there would be no hike in 2015. For taking that stance, I was largely ignored and ridiculed. In a July 16 interview on CNBC’s Futures Now (I am no longer invited to be on their television broadcasts), pundit Scott Nations took me to task for making the “outlandish” suggestion that the Fed would not raise in 2015, saying (to paraphrase):

“If price is truth and Fed funds futures are the collective wisdom of everybody in the world, and they are absolutely a lock for the Fed to raise rates by the end of the year, why is everybody else wrong and you are right?”

But now, in mid-September, it has all changed, far fewer economists expect a hike this year. However, despite this dramatic reversal, few have downgraded their forecasts or weakened their belief that the Fed remains committed to tighten policy…eventually. In other words, the Fed has achieved a complete communications victory.

Just like it has in prior statements, the Fed painted a picture of a stable and growing economy that was ready for a hike. In fact, in her press conference, Janet Yellen said that the Fed was “impressed” by the strength of the domestic economy. Although such statements began to resemble the film Groundhog Day, no one seems to tire of it.

A cornucopia of metaphors should have come to mind: The Fed’s bite had failed to live up to its bark; its “open mouth” operations wrote a check that its Open Market Committee was unable to cash; the Fed has become Lucy of the comic strip Peanuts, always promising to hold the football for Charlie Brown to kick, but always taking it away before he kicks it. Instead, the dominant theme of the coverage was that the Fed’s understanding of the global economy was just better than the rest of us. It apparently understood that a 25 basis point increase in rates in the U.S. could ripple through to the world markets and could potentially push China’s tottering stock market into the abyss. That was a risk it believed was not worth taking.

To keep the story line going requires that the steady torrent of negative data be ignored (see manufacturing data in September Manufacturing Business Outlook Survey of Philly Fed]. Similar weakness is evident in business investment, productivity, and consumer confidence numbers. Based on those data sets, conventional Keynesian “wisdom” suggests the Fed should be preparing a fresh round of stimulus, not readying its first economic sedative in nine years.

The big news is the introduction of “international developments” as an ongoing input into the Fed’s rate deliberation process. This addition allows the Fed nearly limitless latitude to perpetually kick the can down the road. After all, it is a great big world, and it will always be possible to find a problem somewhere. A Reuters article issued after the decision describes the new reality (9/18/15, Howard Schneider):

“It is a situation that could leave the Fed stranded in its hunt for a rate liftoff until the entire global economy is growing in sync, and the horizon is clear of risks.”

So there you have it. The Fed is no longer just the central bank of the United States, but the central bank of the entire world. As such it will need to consider any possible negative impacts, anywhere, before it pulls the trigger. This isn’t just moving the goalposts; it is dismantling them completely, putting them in crates, and losing them in a government warehouse…much like the Ark of the Covenant at the end of the first Indiana Jones movie.

The height of yesterday’s absurdity came during Janet Yellen’s press conference when Ann Saphir from Reuters asked her about the possibility that interest rates could stay at zero “forever.” While characterizing that likelihood as “extreme,” Yellen incredibly stated that she could not rule out the possibility. Of course the absurd suggestion that American civilization may never see rates above zero did not even raise eyebrows in the mainstream media. But the statement itself raises some interesting questions about Yellen’s actual thinking. First, how can she really be contemplating at 2015 rate hike, if she cannot even rule out the possibility of rates remaining at zero forever? Second, is she really that naïve and arrogant to believe that currency markets would allow the Fed to hold interest rates at zero indefinitely, without creating a dollar crisis, even if the Fed wanted to hold them there?

As I have maintained continuously, rate hike talk from the Fed is just a bluff to disguise its inability to tighten, as even small increases could be sufficient to prick the biggest bubble it has ever inflated. It is no coincidence that the stunning 170% increase in the Dow Jones, that occurred between March 2009 and the end of 2014, happened while the Fed was stimulating the economy almost continuously with QE, and that the rally came to an abrupt end when the QE stopped.

The recent 10% correction on Wall Street confirms to me just how sensitive the markets remain to the prospect of any rates higher than zero. In reality, that sell-off was a much greater factor than China in keeping the Fed quiet. That steep correction occurred at a time when most forecasters believed that a September hike was in the cards. For years, they had known that a rate hike was coming, but they always thought it would arrive when the economy was healthy. But when the big day became a clear and present danger, and the economy was still less than optimal, markets began to panic. It was only when Fed officials came out with publicly dovish statements that the sell-off ended. Despite this obvious connection, the markets are still blaming China, despite the fact that big sell-offs in China had been occurring for much of 2015 without sparking follow on panics in the U.S.

As a result, it should be clear that ongoing Fed decision-making is not just “data dependent” (and now we are talking about international, not just domestic, data), but also “market dependent,” meaning the Fed won’t raise rates if markets sell off sharply on expectations that it will raise. Given these impossible conditions, perhaps a perpetual zero rates are not so outlandish. But the reality is Central banks can’t really control interest rates across the spectrum, just the short end of the curve…when markets really panic, they won’t be able to stop economically devastating interest rate spikes on the long end.

In the meantime, I can only hope that the foreign exchange and commodity markets are finally getting the picture that the Fed appears impotent. The tremendous rally in the dollar over the past 18 months was predicated on the belief that interest rates would be rising in the U.S. just as they were falling everywhere else. Now that that premise is in tatters, the dollar should be giving back its undeserved gains. Recent moves in the foreign exchange market reveal that this is the case.

When the year began, opinion was divided between those who thought the Fed would move in March, and those who thought it wouldn’t happen until June. When June came and went, September became the odds-on favorite. Now those same experts are once again divided between December and sometime in 2016. When will these “experts” finally connect the real dots and discover that the monetary medicine that the Fed has doused over the economy since 2008 has only created a weak and utterly dependent economy. A rate hike is supposed to be a signal that the economy has a clean bill of health. But as the patient fails to recover, another dose of QE will be just what the doctor orders.

Subscribe to Euro Pacific’s Weekly Digest: Receive all commentaries by Peter Schiff, John Browne, and other Euro Pacific commentators delivered to your inbox every Monday!

Sniff, sniff, sniff. I smell another Peter Schiff Was Right YouTube video in the offing…

(Editor’s notes: Permission to publish article granted by Euro Pacific Capital; I am not responsible for any personal liability, loss, or risk incurred as a consequence of the use and application, either directly or indirectly, of any information presented herein)

Christopher E. Hill
Survival And Prosperity (

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Jim Rogers: ‘There Will Be A Lot Of Turmoil In The Financial Markets Next Year’

Zunaira Saieed of The Star (Malaysia) recently interviewed well-known investor, author, and financial commentator Jim Rogers. The former investing partner of George Soros was asked about the impact of economic/financial turmoil on countries belonging to the Association of Southeast Asian Nations (ASEAN), and the exchange included the following. From the paper’s website last Saturday:

Q: What is the outlook of the financial markets next year?

A: The troubles in the financial markets have started. There will be a lot of turmoil in the financial markets next year, eventually leading to some sort of crisis, perhaps even a full blown crisis.

Some emerging-market currencies are already having problems this year, and this is spreading to bigger things since this is the first time in history that all the major central banks are printing huge amounts of money.

My main concern is that the US Federal Reserve doesn’t know what it’s doing. It does not know what it is going to do next as interest rates are going to go higher so it has to start withdrawing huge artificial oceans of liquidity. When that takes place, 2016 and 2017 are not going to be fun years because these guys have made mistakes and they have to correct it…

The Singapore-based investor did offer up some potential investment opportunities to readers. From the piece:

What sectors should investors look to in light of the US rate hike and China’s slower growth?

You should invest in only what you know about. However, I have put some of my money in places that are depressed like Japan, Russia and agricultural commodities. I do own some real assets like silver and gold. However, I have not bought silver and gold for a while, but if prices fall further, I will buy more gold, and again the best is to stay with what you know.

Asean has lots of agricultural produce, so this might be a relatively less dangerous place to be. While agricultural prices are depressed and we may see more problems, we’re not going to see disastrous problems. Stocks in the New York Stock Exchange can fall by 60% to 70% when things get bad but I don’t see sugar or rice prices falling by that amount. Agricultural prices have fallen and may start to turn around.

Avoid technology stocks, especially the mainly US-listed social media and biotechnology stocks as their valuations are extremely high. Salaries of employees are also very high. Even if there’s no tech bubble, the share prices certainly look expensive.

I will not be putting my money there.

Nicely done by Saieed to extract that last bit about technology stocks from Rogers. I, for one, don’t recall him talking about it recently.

Christopher E. Hill
Survival And Prosperity (

(Editor’s notes: Info added to “Crash Prophets” page; I am not responsible for any personal liability, loss, or risk incurred as a consequence of the use and application, either directly or indirectly, of any information presented herein)


Saieed, Zunaira. “Gearing up for the turmoil.” The Star. 19 Sep. 2015. ( 22 Sep. 2015.

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Jim Rogers On Illusionary Prosperity: ‘The Road’s Coming To An End’

Investor, author, and financial commentator Jim Rogers just appeared on the Yahoo! Finance show Market Pulse. The chairman of Rogers Holdings had plenty to discuss with Michael Santoli, Yahoo! Finance Senior Columnist. From their exchange that was published on the Yahoo! Finance website this afternoon:

SANTOLI: So we’re overdue for some kind of problems. Obviously we’ve been focused on problems that seem to be unfolding elsewhere in the world whether it’s emerging markets, commodities, currencies, things like that. So how bad is it going to be? People keep pointing to these prior instances whether it’s 2011 or 1998. How’s it look?
ROGERS: Mike, you work for Yahoo! Finance. You should know how bad it’s going to be for goodness sakes. It’s going to be wor- we had a problem in 2008 because of huge debt. The debt is much, much, much higher now everywhere in the world. The Federal Reserve’s balance sheet alone is over 600 percent bigger in just seven years. Mike the problem’s going to be much worse. You should watch Yahoo! Finance. I’m telling you, you should be worried, you should be prepared… We’ve got staggering debt. Huge amounts of money printing. We’re going to have to pay the price because politicians have kept pushing things down the road, kicking the can down the road as they put it- the road’s coming to an end.

The former investing partner of George Soros in the legendary Quantum Fund added later:

I don’t have any shares in the U.S. for instance. I’ve got some shorts in the U.S.- it’s near all-time highs. I don’t have many shares many places except some I bought 20 or 25 years ago. China I own shares. Russia I own shares. These are depressed markets. I like to buy things- agriculture- I like to buy things that are depressed because even if we have problems, at least they’re already down some. They can go down more, and they probably will, but that’s where I’m focusing.

“Jim Rogers On The Fed”
Yahoo! Video

Christopher E. Hill
Survival And Prosperity (

(Editor’s notes: Info added to “Crash Prophets” page; I am not responsible for any personal liability, loss, or risk incurred as a consequence of the use and application, either directly or indirectly, of any information presented herein)

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Peter Schiff: ‘The Whole U.S. Economy Is One Gigantic Bubble At This Point’

Back to finance and investing matters. In 2012, “crash prophet” Peter Schiff predicted Ben Bernanke and the Federal Reserve would attempt to inflate another asset bubble to revive the U.S. economy.

The CEO and chief global strategist of Euro Pacific Capital underestimated how successful they would be- in terms of inflating multiple bubbles.

Schiff, who correctly called the housing bust and 2008 economic crisis, was on the phone with Free Talk Live discussing the student loan bubble last Sunday when he told listeners:

I think we have a much bigger bubble. The bubble in student loans is a small part of what’s actually going on. The government has managed to reflate the housing bubble, the stock market bubble, but we have a bond market bubble, a dollar bubble, a consumer loan bubble. The whole U.S. economy is one gigantic bubble at this point. That’s all we’ve got left. And that’s why interest rates have been at zero percent for almost seven years because the Fed is desperately trying to keep the air in these bubbles. It doesn’t want them to deflate. It doesn’t want to pop them. That’s why I don’t believe they’re actually planning on raising interest rates. I think they recognize that they cannot prick this bubble because it will be much worse than the bursting of the housing bubble or the dot-com bubble. But there is no avoiding this. The government has created this disaster and there’s no way around it. They’re just trying whatever they can to delay the inevitable. But because they’ve succeeded in delaying it, they’ve just made it much, much worse. It’s going to be a lot worse. So people really have to protect themselves from this. More so than I think in past crises…

Owning gold is one way to protect yourself. But people should also diversify. They shouldn’t only have gold. But they should definitely have some gold. But they should also invest internationally.

“The US Economy Is One Giant Bubble”
YouTube Video

Schiff later warned:

So there’s a lot, I think, that’s going to happen to really upend the status quo. And I think a lot people are going to go broke in this next crisis. And if you’re not prepared for it, you could suffer that fate. So I think it’s more important now, even than with the dot-com bubble or the housing bubble because this one is going to have much more profound consequences for typical Americans when it bursts. I think we’re going to see a big loss of value of the dollar, not just internationally and not just for tourists going to Europe. But as Americans try to buy things here in America. Things that they used to be able to afford are going to be completely unaffordable for the vast majority of Americans.

Christopher E. Hill
Survival And Prosperity (

(Editor’s notes: Info added to “Crash Prophets” page; I am not responsible for any personal liability, loss, or risk incurred as a consequence of the use and application, either directly or indirectly, of any information presented herein)

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Marc Faber: ‘There Is No Safe Asset Anymore’

Let’s turn away from my neck of the woods for now and focus on what the “crash prophets” are saying (and more importantly, doing) these days in the midst of major volatility in the financial markets. First up is Swiss-born investment advisor/money manager Marc Faber. The publisher of the monthly investment newsletter The Gloom Boom & Doom Report appeared on Bloomberg TV’s Market Makers on September 2, and when asked which asset class he thinks “offers either safety or the prospect of meaningful capital appreciation for more than the short term,” Dr. Faber told viewers:

I think that because of modern central banking and repeated interventions with monetary policy, in other words with QE, all around the world by central banks, there is no safe asset anymore. When I grew up in the fifties it was safe to put your money in the bank on deposit. The yields were low but it was safe. But nowadays, you don’t know what will happen next in terms of purchasing power of money. What we know is that it’s going down. And I would say if I had to turn anywhere where, as you say, the opportunity for large capital gains exists, and the downside risk in my opinion limited, it would be the mining sector, specifically precious metals. Mining companies, in other words, gold shares. And I would also look at, as you just mentioned before, stocks like Freeport, Newmont, American Barrick that have been hammered because of falling commodity prices. Now commodities may still go down for a while, but I don’t think they’ll stay down forever…

I would rather focus on precious metals- gold, silver, platinum- because they do not depend on industrial demand as much as base metals as industrial commodities.

“Mark Faber: There Is No Safe Asset Anymore”
Bloomberg Video

Christopher E. Hill
Survival And Prosperity (

(Editor’s notes: Info added to “Crash Prophets” page; I am not responsible for any personal liability, loss, or risk incurred as a consequence of the use and application, either directly or indirectly, of any information presented herein)

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Jim Rogers: ‘You Should Be Prepared, You Should Be Knowledgeable, And You Should Be Worried’

Well-known investor, author, and financial commentator Jim Rogers recently talked to J.D. Hayworth, the host of the Newsmax TV show Newsmax Prime, about a number of topics, including what he suspects the Federal Reserve will do the next time there’s panic on Wall Street. From the exchange published on the Newsmax website tonight:

What’s going to happen is every time people start calling up and panicking they’re going to do something. I don’t know what they’ll do next. They’ll buy more shares. Or they’ll buy shares, they’ll buy more bonds, they’ll do something. And then we’ll have another big rally. But J.D., that’s going to be the last rally. Maybe they can save the market one more time. But the world is starting to give up on all this artificial money printing. It’s happening in Japan, Europe, Britain, and America. It’s never happened before in recorded history that all the major central banks are printing a lot of money. This is not going to end well, J.D. You should be prepared, you should be knowledgeable, and you should be worried

We’ve had economic slowdowns every four to seven years since the beginning of the Republic. We’re going to have them again. It’s been six years since the last time. So start getting worried. Maybe it’ll be seven, maybe it’ll be eight years this time, but it’s going to come…

(Editor’s note: Bold added for emphasis)

The former investing partner of George Soros went on to address Hayworth’s question regarding “three main things that need to happen to avert economic gloom-and-doom if possible.” You can watch the entire discussion over on the Newsmax website here.

Christopher E. Hill
Survival And Prosperity (

(Editor’s notes: Info added to “Crash Prophets” page; I am not responsible for any personal liability, loss, or risk incurred as a consequence of the use and application, either directly or indirectly, of any information presented herein)

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Signs Of The Time, Part 87

It’s been interesting watching the run-up to the recent carnage on Wall Street.

For some time now, the “crash prophets” who correctly-called the housing market bubble and 2008 economic crisis have been warning the stock market was frothy, if not in bubble territory.

Meanwhile, the Pollyannas who didn’t see either of those events from the last decade convinced themselves that not only had the United States managed to get on solid footing again after the blatant “papering over” of the debacle that reared its ugly head seven years ago, but that U.S equities and their valuations were a fair reflection of an economic “recovery” that was charging “full-steam ahead.”

At the same time, the Pollyannas (with the assistance of the financial mainstream media) ridiculed the “prophets” at any chance they got.

Reminds me a lot of that time period from roughly 2004 to 2008, until the Pollyannas got spanked hard and many of their mouthpieces were put out to pasture.

Make no mistake about it, America’s financial crash is coming.

The powers-that-be can only “kick the can down the road” until the road runs out. And that time is almost here.

Is the recent stock market plunge the event that pushes us over the edge?

I’m not sure it is. That being said, the dive has resulted in some serious financial losses. Steve Goldstein, the D.C. Bureau Chief for the MarketWatch website, wrote this afternoon:

As of March 31, households and nonprofits held $24.1 trillion in stocks. That’s both directly, and through mutual funds, pension funds and the like. That also includes the holdings of U.S.-based hedge funds, though you’d have to think that most hedge funds are held by households.

Using the Dow Jones Total Stock Market index through midmorning trade, that number had dropped to $22.32 trillion.

In other words, a cool $1.8 trillion has been lost between now and the first quarter — and overwhelmingly, those losses occurred in the last few days…

(Editor’s note: Bold added for emphasis)

$1.8 trillion. Whew. After riding the bull for so long, it looks like the Pollyannas weren’t expecting the beast to pull an abrupt about-face… and gore them.

The White Stripes, Conquest (2007)
YouTube Video

Christopher E. Hill
Survival And Prosperity (

(Editor’s note: I am not responsible for any personal liability, loss, or risk incurred as a consequence of the use and application, either directly or indirectly, of any information presented herein)


Goldstein, Steve. “Households just saw $1.8 trillion in wealth vanish as stocks fall.” MarketWatch. 24 Aug. 2015. ( 24 Aug. 2015.

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Survival And Prosperity
Christopher E. Hill, Editor
Est. 2010, Chicagoland, USA

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