Jim Rogers: "Bernanke Is A Disaster" Who Will "Bring QE Back" 

Jim Rogers spoke to a very dramatic and even more hoarse Bartiromo, touching on old and well-known themes, namely that the administration is essentially using up its last stimulus bullet with the current recession: "When the problems arise next time what are they going to do? They can’t quadruple the debt again. They cannot print that much more money. It’s gonna be worse the next time around." Alas, as Obama appears to be preparing, "they" will simply do more of the same: the same payroll tax that was supposed to cure all evils in December. The fact that nobody anticipated something so stupid is probably indicative of the administration's genius. Or lunacy. Followed by more dollar printing of course. On what needs to be done to avoid the debt ceiling breach which will shut down the government, Faber believes that nothing short of Draconian measures will be relevant: "We’ve got troops in 150 countries around the world. They’re not doing us any good, they’re making enemies. They’re costing us a fortune." On the other hand he acknowledges: "we can never pay off these debts." As usual, Rogers saved the best for Bernanke: "Since the first day Mr Benanke went to Washington I knew he was going to be a disaster. He has never been right about anything in the 7 or 8 years he has been there. I hope he doesn't come back with QE3 but that's all he knows. The only thing he knows to do is to print money. He doesn't understand finance, he doesn't understand currencies, he doesn't understand economics. He understands printing money. It's the wrong thing to do but that's what he'll do... They're gonna bring QE back because he will be terrified and Washington will be terrified," he said. "There's an election coming in November 2012. Washington's gonna print more money." Lastly, in terms of investments, Rogers is long the dollar but only "for a rally", and also owns Chinese stocks and commodities, would be buying more gold and silver if the price were to go down, and is short tech stocks and JP Morgan. Like we said nothing new. With one addition: the republicans will now get tax cuts, so democrats get QE3. As we have been saying - 2011 is nothing other than 2010 all over again.




US Is Nearing Even Worse Financial Crisis: Jim Rogers

In The News Today

June 8, 2011, at 7:30 pm
by Jim Sinclair 

Jim Sinclair’s Commentary
When the demonic sharks eat the demonic sharks only one really bad fat shark remains.
Who will that be?


The closing bell tolls for thousands of jobs By MARK DeCAMBRE
Last Updated: 1:20 AM, June 8, 2011
On Wall Street the hatchet man cometh.
Deep-pocketed bankers and traders are bracing for what could be a fresh round of job cuts on the Street, concentrated in equities trading and investment banking, where firms are considering eliminating thousands of jobs in the coming weeks, The Post has learned.
Barclays Capital, Goldman Sachs, Bank of America, JPMorgan Chase and Morgan Stanley currently are among those financial institutions either weighing staff cuts or actually paring payroll as they struggle to rein in costs and eke out profits in a choppy market, sources told The Post.
The exact size of the layoffs across the industry could not be learned, but it’s possible total jobs cuts could run into the thousands as firms assess the impact on their bottom lines of sweeping regulatory reform and a balky economic recovery.
Reps for the banks refused to comment on possible cuts.
As it stands, the Wall Street securities business in New York employs about 168,500 workers, according to the city’s Independent Budget Office.
Barclays Capital, which has about 140,000 employees globally, is in the process of laying off staff that could result in significant headcount reductions by the end of the year, sources say. People with direct knowledge of the firm’s business say about 50 staffers have been laid off from the firm’s global equities sales and trading unit so far.
"[Wall Street] is adjusting to a world in which you’re going to have to generate higher margins," said Brad Hintz, bank analyst at Sanford Bernstein. "For many firms, it looks like that the trading world has changed and firms are resizing their trading."
More…






Fed: Default would be dangerous; Fitch may cut rating By Walter Brandimarte
NEW YORK | Wed Jun 8, 2011 5:07pm EDT
(Reuters) – A default would have severe reverberations in global markets, a top Federal Reserve official said just hours after Fitch Ratings warned it could slash credit ratings if the government misses bond payments.
St. Louis Federal Reserve Bank President James Bullard told Reuters on Wednesday "the U.S. fiscal situation, if not handled correctly, could turn into a global macro shock.
"The idea that the U.S. could threaten to default is a dangerous one," he said in an interview.
"The reverberations in those global markets would be very severe. That’s where the real risk comes in," Bullard warned.
Some Republican lawmakers have said a brief default, which would be inevitable in August if lawmakers fail to raise the nation’s $14.3 trillion debt ceiling, might be acceptable if it forces the White House to deal with large budget deficits.
Bullard’s warning came just after Fitch said it would slash to "junk" the ratings on all Treasury securities, seen worldwide as a risk-free investment, if the government misses debt payments by August 15.
The ratings would go back up once the government fulfills its debt obligations, but probably not to the current AAA level, Fitch said, in a stark statement about the impact of even a short-lived default on the credit-worthiness.
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Jim Sinclair’s Commentary

Just in case you did not know about this war.

U.S. Is Intensifying a Secret Campaign of Yemen Airstrikes By MARK MAZZETTI
Published: June 8, 2011
WASHINGTON — The Obama administration has intensified the American covert war in Yemen, exploiting a growing power vacuum in the country to strike at militant suspects with armed drones and fighter jets, according to American officials.
The acceleration of the American campaign in recent weeks comes amid a violent conflict in Yemen that has left the government in Sana, a United States ally, struggling to cling to power. Yemeni troops that had been battling militants linked to Al Qaeda in the south have been pulled back to the capital, and American officials see the strikes as one of the few options to keep the militants from consolidating power.
On Friday, American jets killed Abu Ali al-Harithi, a midlevel Qaeda operative, and several other militant suspects in a strike in southern Yemen. According to witnesses, four civilians were also killed in the airstrike. Weeks earlier, drone aircraft fired missiles aimed at Anwar al-Awlaki, the radical American-born cleric who the United States government has tried to kill for more than a year. Mr. Awlaki survived.
The recent operations come after a nearly year-long pause in American airstrikes, which were halted amid concerns that poor intelligence had led to bungled missions and civilian deaths that were undercutting the goals of the secret campaign.
Officials in Washington said that the American and Saudi spy services had been receiving more information — from electronic eavesdropping and informants — about the possible locations of militants. But, they added, the outbreak of the wider conflict in Yemen created a new risk: that one faction might feed information to the Americans that could trigger air strikes against a rival group.
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Jim Sinclair’s Commentary

I have to agree.

Bill Gross: Treasury investors will ‘get cooked’ By Hibah Yousuf June 8, 2011: 9:04 PM ET



CHICAGO (CNNMoney) — Pimco founder Bill Gross reiterated his warning to cash out of Treasuries Wednesday afternoon.
Investors who have been betting on Treasuries are destined "to get cooked like frogs in an increasingly hot pot of water," the well-known bond bear told attendees at a Morningstar Investment conference in Chicago.
Gross, who manages the $235 billion Pimco Total Return Fund (PTTAX), said real interest rates, which remove the effect of inflation to measure the actual yield an investor receives, have fallen into negative territory.
He pointed out that Treasury inflation-protected securities with a maturity of 5 years are trading at a yield of -0.5%. In October 2008, the 5-year TIPS’ real interest rate stood at 4%.
More…




Fed: Default would be dangerous; Fitch may cut rating.

 

 

 

China warns U.S. debt-default idea is "playing with fire"

 

 

 

Peter Schiff: Lack of buyers may force Treasury to boost interest rates

 

 

 

True Cost of Fannie, Freddie Bailouts: $317 Billion, CBO Says

 

 

 

California taps highest income taxpayers for more revenue. 

 

 

 

Federal Reserve Set to Implode Economy.



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