Jim Rogers Urges People to Sell U.S. Dollar Holdings
Nov. 15 (Bloomberg) -- Investor Jim Rogers urged people to get out of the dollar and says he expects to be rid of all his U.S. currency assets by summer next year.
"If you have dollars, I urge you to get out,'' Rogers said in an interview from Singapore. He is chairman of New York-based Rogers Holdings, formerly known as Beeland Interests Inc. "That's not a currency to own.''
... Rogers, who predicted the start of the global commodities rally in 1999, criticized Federal Reserve Chairman Ben S. Bernanke for comments on the currency before a congressional committee on Nov. 8.
"He is a total fool,'' Rogers said. "He said Americans who buy only American goods are not affected if the value of the U.S. dollar goes down. I was terrified.''
Bernanke said the only effect of a weaker dollar on a typical American with their wealth in dollars, buying consumer goods in dollars, would be "their buying powers, it makes imported goods more expensive.''
Rogers said that's not right.
"If you only buy American products and the dollar goes down, the price of oil goes up, copper goes up, wheat goes up,'' he said. "That affects you. He doesn't understand the economy as far as I can see.''
The Taj Mahal is not accepting Dollars anymore either.
U.A.E. May Peg to Currency Basket, Al-Suwaidi Says.
Saudi minister warns of dollar collapse.
Dollar stays weak as Iran joins fray on greenback weakness.
The Washington Post on the Liberty Dollar seizure and Ron Paul.
The warrant for seizure of Liberty Dollars, this document has since been sealed.
Comments (7)
In the affidavit, an FBI special agent states that he is investigating Norfed for federal violations including "uttering coins of gold, silver, or other metal," "making or possessing likeness of coins," mail fraud, wire fraud, money laundering and conspiracy. "The goal of Norfed is to undermine the United States government's financial systems by the issuance of a non-governmental competing currency for the purpose of repealing the Federal Reserve and Internal Revenue Code," he states."--Washington post
I think the government is very obvious with their intent. At least that is a step above ignoring the issue.
Published: November 18, 2007 10:52 PM
Published: November 19, 2007 11:46 AM
Cory, listen the YouTube video of the actual hearing.
http://www.youtube.com/watch?v=yAwvlDJgJbM
Published: November 19, 2007 12:38 PM
Yes, Bernanke made that comment in response to a question from Ron Paul. I have been shocked at how little he seems to understnad our financial system, as well as our economy. First he claims that subprime is contained, when clearly the problem had spread far beyond subprime. Now he is saying that weak dollar will not impact Americans, unless they buy imported goods. OUCH.
Published: November 19, 2007 3:34 PM
Bernanke's comment parallels Harold Wilson's famous "the pound in your pocket" statement when the pound was devalued in the '60s. The basis of each is a technical fact that has nothing to do with what matters: domestic goods will not experience an instantaneous and automatic price increase from a deterioration in exchange rates, the way imported goods and services payable in the other currencies do. However, they do rise in price in the very short term, from market effects as the other things flow through - so it does matter. The technicality only shields those who can shelter behind it for a brief while - but that is precisely why things flow through. It doesn't even protect prices of existing stock in trade until it gets used up, since traders mark them up on receiving the news of the deterioration.
Published: November 19, 2007 11:21 PM
As a consequence of the raid, Liberty Dollars are very scarce. On ebay the Ron Paul Libertys are going for $300-$500 each! Many people are scrambling to get Liberty Dollar Certificates so that they can join the class action lawsuit (as the silver backing the certificates were confiscated in the raid.) The store that sells collectable Libertys (going back to 1999) is having a liquidation sale- http://www.LibertyDollarUSA.com And with no more being minted until the end of any legal proceedings, it may be quite awhile before the prices of Libertys come back down. Even common Libertys are going on ebay for $40-$50!
Published: November 23, 2007 4:17 AM
Jimmy Rogers plans to invest his future in China, but did anyone see the article in Financial Times about China's GDP being about 40% smaller than reported? I didn't save the link but here's the relevant info if you want to google it: "The limits of a smaller, poorer China" By Albert Keidel Published: November 13 2007.
Here's the lead paragraph:
In a little-noticed mid-summer announcement, the Asian Development Bank presented official survey results indicating China’s economy is smaller and poorer than established estimates say. The announcement cited the first authoritative measure of China’s size using purchasing power parity methods. The results tell us that when the World Bank announces its expected PPP data revisions later this year, China’s economy will turn out to be 40 per cent smaller than previously stated.
Published: November 23, 2007 9:48 AM