Video: Jim Rogers ‘Benanke is lying to us, Fed is in the market’

October 14, 2011 by · Leave a Comment
Filed under: Videos 

Mr. Rogers ain’t no slouch when it comes to banking matters.  He made the very astute comment that regardless if we have QE3 or not, the Federal Reserve has been in the market all this time.  When the Fed wants to lower interest rates, the actual method they use to accomplish this is by purchasing agency securities and that pushing yields lowers because of the artificial but very real demand created in that market.  They continue to do this until they get to the desired interest rate.

Jim also understands how to handle an excessive debt problem.  You have to let them fail so they bad (excessive) debt can be defaulted.  Until we get this point and act on it, we will continue to see more disastrous policies and uncertain markets that could spike or crash on a dime and down the road, who knows?   We just need to own up to the problem and see how we can fix it and learn.

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