Jim Rogers thinks the next problem to face our economy will be inflation given easy money from the Fed and Government spending. According to Rogers, the inflationary pressures this time around will be worse than the 1970s.
Talking to Aaron Task, TechTicker, this morning Roger said “The Fed has laid the groundwork for some serious inflation down the road by printing all this money.”
“The U.S. government lies about inflation,” Roger says. “Prices of nearly everything are going higher.. Inflation pressures are accelerating…and we’re going to be paying more for just about everything down the road.”
Asked if he foresees a 1970s-style stagflation period ahead, Rogers gave a portentous reply: “I hope it’s as good as the 1970s stagflation..It might be much, much worse.”
Rogers said also — when asked about why Bond yields are still so low if inflation is coming — that the Fed is manipulating the bond market.
The 2000s have really mirrored the 1960s: A time of turbluence and social/technological change compared to the calmer, more innocent previous decade (the 1990s and 1950s). 9-11/Middle East is to Generation Y to what JFK/Vietnam was for the Boomers. An article says how “history repeats itself”; and the 2010s may be fairly similar to the 1970s. The US dollar is at a 52-week low (similar to how it weakend during the late 1960s/early 1970s). Bonds may be a good investment nowadays.