Jim Rogers Issues Dramatic Warning

[LibertyEagle]

I think you just might be on to something there!

Exactly. Who was it that said that wealth never disappears, it just changes hands?

 

[Dr.3D]

Thing is, I feel really bad for the people who worked all their lives and tried to put something away to retire on and that being pulled out from under them.

 

[cubical]

So in a crash, where did all the wealth go? This is something I have had a big problem figuring out for some time now.

I wouldn't listen to the extremists on this board(full of extremists). The real wealth will not disappear(homes, land, cars etc), but in terms of dollars I believe it will get much more expensive. If you are prepared, you should welcome this crash. It will purge the system, and I will be waiting with real money, ready to buy assets at pennies on the dollar.

 

[cubical]

Most of it evaporates, given that most of it never existed in the first place except as a transient, overstated fiction.

Most of what people thought was "wealth", was little more than future expectations, and not real value, since value is forever transient. Once the lending music stops, everyone scrambles and dashes for a chair (that has been long since removed). But the bankers' expectation does not change. When nobody is buying, prices fall, and existing debts end up being for nothing more than goods and services now of little, or questionable, value. When everything crashes, most people with debts end up on the hook for debts, the amounts of which don't change at all, even though the true market value for whatever they financed dropped.

In the long run, the banks (and the Fed, and the governments that bail banks out) end up with title to most of the actual substantial wealth, regardless of its fleeting, formerly distorted value. They'll keep a lot of this completely and deliberately off the market, of course, because when things pick up, it's, "Hey, want to finance one of our repossessions, cheap cheap?"

In a true deflationary default, bankers would lose. They love inflation, as they are closest to the printing presses.

As you said, when rates rise, the banks will be bailed out again to "save the system", but it will be much easier to pass this time around, because it won't be the shareholders who lose out, but the depositors. Thus inflation is all but guaranteed. Money overseas will flood our shores(not goods), which will fuel the inflation. Rising rates is the music being turned off.

*I suppose the fed could print money forever and keep rates down, but then we turn into Zimbabwe.

 

[Dr.3D]

I wouldn't listen to the extremists on this board(full of extremists). The real wealth will not disappear(homes, land, cars etc), but in terms of dollars I believe it will get much more expensive. If you are prepared, you should welcome this crash. It will purge the system, and I will be waiting with real money, ready to buy assets at pennies on the dollar.

Well, I'll just be lucky if I can survive. It's not like I had thirty years warning something like this was going to happen. I'm retired.

 

[anaconda]

I have no idea. You have the link to what I saw.

I did a search a few minutes ago. I didn't find the interview, but I found this:
http://jimrogers1.blogspot.com/2012/08/jim-rogers-warning-it-is-going-to-be.html

The date is: Sunday, August 12, 2012

I just dig this up. From August 8th. The interviewer is a bit dense, but it's a pretty good interview. He talks about political instability beginning at around 12:10. And at about 13:00 rips both Obama and Romney giant gaping orifices.

 

[Swarmed]

I wouldn't listen to the extremists on this board(full of extremists). The real wealth will not disappear(homes, land, cars etc), but in terms of dollars I believe it will get much more expensive. If you are prepared, you should welcome this crash. It will purge the system, and I will be waiting with real money, ready to buy assets at pennies on the dollar.

What is going to happen when millions of people can't eat? People will go mad, and there will be intense rioting everywhere.

 

[Dr.3D]

What is going to happen when millions of people can't eat? People will go mad, and there will be intense rioting everywhere.

Yep, and even the people who were prepared will have a serious problem keeping what they have so they can survive. It won't be a pretty picture.

 

[Steven Douglas]

In this world there are only three things that are certain: death, taxes, and the coming economic collapse. And taxes is debatable.

Only real people die. Superior fictitious "persons" are given immortality by the godly states that allow them to spawn.

 

[RickyJ]

Yep, and even the people who were prepared will have a serious problem keeping what they have so they can survive. It won't be a pretty picture.

Those that think the crash is the best thing only think that because they have got their "real money" and will get tons of stuff for "pennies on the dollar" after the crash. WRONG! Who is going to take gold or silver for food or water when it is so scarce, very, very few. The crash will be hell on Earth, even for the prepared! Good luck cubical trying to buy property when it will be hard enough for you to keep what you already have after the crash! Only those with plenty of guns, ammo and water and food will have much of a chance after the crash, but even they will have to fight daily to keep it.

 

[oyarde]

It sucks, but they really do look for such people that might resist them, and they will be the first to be picked up secretly before they impose martial law. Most on this forum will be on that list, except of course for the agents posting here.

Hah , they are on the list too , just too stupid to know it !

 

[KingRobbStark]

Hah , they are on the list too , just too stupid to know it !

Decontaminate everything and everyone. Liberty is infectious.

 

[emazur]

I like Rogers and he's pretty level headed, but just to show that he can be wrong, remember that 3 years ago he said the UK pound was "finished": http://www.bloomberg.com/apps/news?pid=newsarchive&sid=agxlt5ZPtyLA

I do think he's right that a collapse is coming, but no one really knows one. Personally I find it unlikely it won't happen by 2025, give or take 3 years, b/c by then (or sooner) entitlements and interest will consume 100% of the federal budget (it's around 66% now).

 

[youngbuck]

I look Rogers and he's pretty level headed, but just to show that he can be wrong, remember that 3 years ago he said the UK pound was "finished": http://www.bloomberg.com/apps/news?pid=newsarchive&sid=agxlt5ZPtyLA

I do think he's right that a collapse is coming, but no one really knows one. Personally I find it unlikely it won't happen by 2025, give or take 3 years, b/c by then (or sooner) entitlements and interest will consume 100% of the federal budget (it's around 66% now).

Great point.

 

[roho76]

Exactly. Who was it that said that wealth never disappears, it just changes hands?

The only things that's changed is the amount of dollar units that represent the wealth. As long as they get 51% of the newly printed money then they will stay ahead of inflation and those who have to share the other 49% will struggle to get ahead.

 

[KingNothing]

So in a crash, where did all the wealth go? This is something I have had a big problem figuring out for some time now.

I think it breaks down as follows: all of the fictional, levered, credit-as-well, would disappear. The financial system would then freeze. However, the sun would still rise the next day, crops would still grow, natural resources would still be in the Earth, people would still have a desire to purchase things and seek fulfillment through family, work, and leisure. I just don't see how it would result in The End of Times. Productive capacity would still exist. The only concern is widespread panic, chaos and destruction of that productive capacity. I don't particularly think that would happen.

 

[cubical]

What is going to happen when millions of people can't eat? People will go mad, and there will be intense rioting everywhere.

Food will not disappear, it will just become really expensive. Since we import a lot of our food, that food will be diverted somewhere else for a time being, but we do produce a lot of food and other goods that will still be here, just very expensive. I suppose it all matters how everything goes down and what part of the collapse you are looking at.

 

[RickyJ]

Food will not disappear, it will just become really expensive. Since we import a lot of our food, that food will be diverted somewhere else for a time being, but we do produce a lot of food and other goods that will still be here, just very expensive. I suppose it all matters how everything goes down and what part of the collapse you are looking at.

Very expensive? If there is a total collapse there will be no way to buy food. You can trade for it, or work for it, but no one will be accepting dollars for it. Also the farmers themselves will have no way to purchase fuel to grow their crops other than trading or working for it, so food will be in short supply until a different currency emerges. Commerce will stop because trucks will stop. Trucks need lots of fuel to run and they need someone to buy the products they are transporting or they have no reason to go anywhere. Everyone's life savings will wiped out, unemployment will be over 50%, and yes, there will be no easy way to keep your property other than standing guard over it 24/7. The collapse will be hell on Earth. Don't look forward to it, because it is exactly what the elite have engineered to control us better.