Jim Rogers Delivers Blunt Reality Check to Americans
Jim Rogers is foreseeing a severe financial crisis up ahead that could trigger a U.S. stock market crash in 2016.
Speaking with CNN, the billionaire investor blamed the global central banks for putting the world economies in jeopardy. Bearing the recent stock market crashes and corrections of China, Europe, and the U.S. in context, Rogers said that the central banks have no clue of what they are doing. According to Rogers, central banks are too focused on the equity markets, rather than the larger economy.
“They are going to keep trying to do everything they can to make markets go higher, but the more they do, the worse the situation gets,” said Rogers. (Source: “Economist Jim Rogers: Central Banks Completely Incompetent,” YouTube, February 15, 2016.)
Rogers explained that the central banks are failing in their job. Typically, a central bank’s job is to maintain a sustainable currency and to serve as a lender of last resort. But in the last half-decade, central banks have been lending out money with both hands. Money printing has only helped in propping up the stock market and allowing stockbrokers to keep their Lamborghinis.
“We got a bunch of academics and bureaucrats who don’t have a clue what they are doing,” said Rogers.
The billionaire investor reminds us that the Federal Reserve’s efforts to ease the economy failed to do any good for the economy. Instead, the U.S. economy has become increasingly vulnerable. One rate hike is all it took for the Fed to start considering negative interest rates.
Rogers points out that it’s been more than seven years that we haven’t seen a decent correction in the stock markets. He says, “Markets are supposed to correct. We’re supposed to have economic slowdowns. That’s the way the world has always worked. But these guys think they’re smarter than the market. They’re not.”
Rogers believes that the Fed will jump in again to save the stock market. This will cause the markets to rally in the near-term, but this rally will be short-lived. According to Rogers, a U.S. stock market crash is almost inevitable now.
“We’re all going to pay a horrible price for the incompetence of these central bankers,” he warns. “The rest of this year and next year, we are going to have horrible times in financial markets.”
Rogers has previously revealed that he is shorting the U.S. markets. He believes that negative interest rates will result in a financial Armageddon in the U.S. markets.
“This is going to be a disaster in the end. You should be very worried and you should be prepared,” warms Rogers.