Thread: Jim Rogers is an Austrian economist

Pressed the wrong button I meant to add this too:

Originally Posted by Baron von Lotsov

Yes but how does making it public improve on that?

Because the world have been ignorant to what the Federal Reserve does and the affect of it's actions on the wealth and prosperity of average people. No body with even the smallest amount of common sense would argue that an individual in debt is a premiss for their own well being, no one would argue that a nation in debt is the premiss for a nations economic success. Yet the fractional reserve and fiat money system require that the vast majority of us are overloaded with debt just to keep the money supply alive. In the UK we are probably/arguably one of the more prudent nations and maybe we have a generally better monitory policy than the US but all currencies are pegged to the dollar at some point the dollar is more than likely to suffer a form of currency crisis and when it does the world is going to know about it, no one is coming out of this one unscathed.

At least if the s??t does hit the fan people are preparing for it. It's those people that are preparing are going to be the ones that are going to form a basis in which some form of new economy can emerge. And at least if the s??t does hit the fan those responsible will have to answer for the damage and not any poor sod who happens to have through hard work done well for them selves. Hopefully the now wide spread understanding of monitory policy and it's potential hazards will force pressure on the American establishment to tighten up the rains before we come to a point of collapse.

Originally Posted by Roland

Because the world have been ignorant to what the Federal Reserve does and the affect of it's actions on the wealth and prosperity of average people. No body with even the smallest amount of common sense would argue that an individual in debt is a premiss for their own well being, no one would argue that a nation in debt is the premiss for a nations economic success. Yet the fractional reserve and fiat money system require that the vast majority of us are overloaded with debt just to keep the money supply alive. In the UK we are probably/arguably one of the more prudent nations and maybe we have a generally better monitory policy than the US but all currencies are pegged to the dollar at some point the dollar is more than likely to suffer a form of currency crisis and when it does the world is going to know about it, no one is coming out of this one unscathed.

At least if the s??t does hit the fan people are preparing for it. It's those people that are preparing are going to be the ones that are going to form a basis in which some form of new economy can emerge. And at least if the s??t does hit the fan those responsible will have to answer for the damage and not any poor sod who happens to have through hard work done well for them selves. Hopefully the now wide spread understanding of monitory policy and it's potential hazards will force pressure on the American establishment to tighten up the rains before we come to a point of collapse.

It sounds like fear mongering. If you don't want to get in to debt then don't buy stuff you can't afford, and take the old fashioned practice and save up for it. No one is forcing you to get in to debt unless you think you are too gullible when watching adverts.

As for the American economy, yes it is in a lot of debt, but if they get the Republicans back in then I think they will follow our lead and set about reducing it. That downgrading of their credit rating was the “change” that Obama the socialist preached to them about. Now I don't think America will do too badly if they get back to Republicanism, but the ones in the eurozone are the ones that should be worried. Perhaps that isn't as newsworthy in America where it is always the same thing. "It's all going to collapse" and yet America is the richest country in the world.

Originally Posted by Baron von Lotsov

It sounds like fear mongering. If you don't want to get in to debt then don't buy stuff you can't afford, and take the old fashioned practice and save up for it. No one is forcing you to get in to debt unless you think you are too gullible when watching adverts.

The point is I'm not in debt I still have to suffer the consequences of those who did max out they're credit cards or brought houses they could not afford on the misguided notion that the value of they're properties would go up for ever more.

As for the American economy, yes it is in a lot of debt, but if they get the Republicans back in then I think they will follow our lead and set about reducing it. That downgrading of their credit rating was the “change” that Obama the socialist preached to them about. Now I don't think America will do too badly if they get back to Republicanism, but the ones in the eurozone are the ones that should be worried. Perhaps that isn't as newsworthy in America where it is always the same thing. "It's all going to collapse" and yet America is the richest country in the world.

No one in America with of cause the exception of Ron Paul is talking about real cuts, in all honesty no one in Britain or the EU are talking about real cut's. As far as I can tell from what I see of American TV the EU's problems are being used as a scape goat for Americas, it also makes me cringe when I see economist in America talk about how well the dollar is doing in comparison to the euro, using it as some kind of reflection of that they're economy is coming out of debt, avoiding the fact that all that has happened is fears in the euro have led to flight into the dollar.

I am of the opinion the UK has done a slightly better job of managing the whole affair but it could be doing far better.

It would be nice to see that the UK government was increasing gold reserves and getting out of trade with the US or EU and looking to expand trade with the emerging seven nations, because if this thing does go at least we will have real industry as well as the banking sector.

What needs to be understood with the hyper inflation scenario it is not something that happens gradually, it's something that can happen in a second and once it does their is no going back.

Originally Posted by Roland

The point is I'm not in debt I still have to suffer the consequences of those who did max out they're credit cards or brought houses they could not afford on the misguided notion that the value of they're properties would go up for ever more.

You shouldn't have to suffer the consequences unless you invested in some company that had interests in it. Anyway, well done for staying out of debt. I'm the same, as in I don't have any debt at all so it means I have cash sitting around so I can buy things when they are going cheap.

Originally Posted by Roland

No one in America with of cause the exception of Ron Paul is talking about real cuts, in all honesty no one in Britain or the EU are talking about real cut's. As far as I can tell from what I see of American TV the EU's problems are being used as a scape goat for Americas, it also makes me cringe when I see economist in America talk about how well the dollar is doing in comparison to the euro, using it as some kind of reflection of that they're economy is coming out of debt, avoiding the fact that all that has happened is fears in the euro have led to flight into the dollar.

I thought this 'Tea Party' thing was about lower taxes. Does that imply that the Right will resurface in America, as the Obama experiment has proved not to work? It may well do as things have a tendency to swing back from extremes. The Republicans have been making a big thing about the national debt.

Originally Posted by Roland

I am of the opinion the UK has done a slightly better job of managing the whole affair but it could be doing far better.

The UK's government spending is about 50% of GDP. America has traditionally had far lower taxes, and even today you would be far richer if you were doing the same job over there. Also not only are jobs paid more, but things are cheaper. I mean check the cost of houses. They are significantly cheaper in America.

Originally Posted by Roland

It would be nice to see that the UK government was increasing gold reserves and getting out of trade with the US or EU and looking to expand trade with the emerging seven nations, because if this thing does go at least we will have real industry as well as the banking sector.

Gold is at a very high price at the moment, so it might not be the time to buy too much of it. As for our banks, we are seeing them increase their balance sheets and reducing the leverage on lending. It's the eurozone banks that are being threatened with credit rating downgrades. We have significantly reduced our holdings in eurozone investments, and so we are doing the smart thing. By the way, those emerging economies like India are highly corrupt. Personally I feel better off doing trade with the Americans because they are generally honest and they are the richest as well. It all depends on your line of business though I suppose.

Originally Posted by Roland

What needs to be understood with the hyper inflation scenario it is not something that happens gradually, it's something that can happen in a second and once it does their is no going back.

Bollox. It only happens suddenly when someone had pilfered all the country's wealth like Zimbabwe. In an advanced and relatively corruption free economy it wouldn't happen unless there was some mad person who got elected who instructed the bank to print 10 times its normal rate or whatever, but no one would allow that to happen. This is fearmongering and a lot of American popular press is all about ratings, so they hype it all up. There could be hyperinflation in the amount of bull$hit talked on their TVs though!

BVL I believe you are incorrect in your last statement, surely hyperinflation is about how other countries value your countries currency. If the IMF step in or there is a blockade like Iraq or Iran what then?

At the moment it is is unlikey because we are part of the international power structure yet I do agree with Roland things could change.

Originally Posted by Baron von Lotsov

You shouldn't have to suffer the consequences unless you invested in some company that had interests in it. Anyway, well done for staying out of debt. I'm the same, as in I don't have any debt at all so it means I have cash sitting around so I can buy things when they are going cheap.

Thankfully I messed up when I was young and no one in they're right mind would let me near a credit card if it were not for this it may well be a different story. I might not be in loads of debt however I still have to suffer the consequences of the credit crunch, at the moment not many people are running out to buy a new kitchen, or have a nice new set of doors hung. The credit crunch does not distinguish between those who saved and those who spent money they did not have every body suffers, except bankers, civil servants and politicians.

I thought this 'Tea Party' thing was about lower taxes. Does that imply that the Right will resurface in America, as the Obama experiment has proved not to work? It may well do as things have a tendency to swing back from extremes. The Republicans have been making a big thing about the national debt.

Forget about the left and right they are both the same thing controlled by the same people a bit like in Britain and Europe. What is resurfacing through Ron Paul is the old ideals on which America was founded, being that of, government can not be trusted and the world would be a better place if the government got out of the way of the people.

The UK's government spending is about 50% of GDP. America has traditionally had far lower taxes, and even today you would be far richer if you were doing the same job over there. Also not only are jobs paid more, but things are cheaper. I mean check the cost of houses. They are significantly cheaper in America.

If you go back 40 years you'd be talking about America now America is more akin to Europe every thing that Americas founders dreaded.

Gold is at a very high price at the moment, so it might not be the time to buy too much of it. As for our banks, we are seeing them increase their balance sheets and reducing the leverage on lending. It's the eurozone banks that are being threatened with credit rating downgrades. We have significantly reduced our holdings in eurozone investments, and so we are doing the smart thing. By the way, those emerging economies like India are highly corrupt. Personally I feel better off doing trade with the Americans because they are generally honest and they are the richest as well. It all depends on your line of business though I suppose.

Gold is at a high price and it goes down a little ever now and again and then goes back up their are no signs that it will go down again the worlds faith in fiat currencies may well be coming to an end. The emerging market are the key to all this they are all selling off they're dollars and replacing them for gold. They can't do this quickly or the dollars they hold in reserves will become worthless. Yes India is corrupt but America is totally corrupt at least in India any one can buy them selves out of trouble where as in America only the super rich are allowed this privilege. What is happening with the emerging nations is they are going through the period the west had in the Victorian era. In that era Adam Smith and his view that markets should be left alone by the government became the doctrine of the day and with it came a boom in manufacturing and industry and from that wealth, came a nation of intelligent inhabitants that had time to campaign against corruption in government and the plight of the poor.

Bollox. It only happens suddenly when someone had pilfered all the country's wealth like Zimbabwe. In an advanced and relatively corruption free economy it wouldn't happen unless there was some mad person who got elected who instructed the bank to print 10 times its normal rate or whatever, but no one would allow that to happen.

That is exactly what did happen in America. They elected the neo cons. It started with Clinton but he was by far the better of them, then Bush who really allowed thing to go ballistic, and now Obama and Ben Bernanke are putting the final nails and trim on the coffin.

This is fearmongering and a lot of American popular press is all about ratings, so they hype it all up. There could be hyperinflation in the amount of bull$hit talked on their TVs though!

It is not fearmongering, they are printing money like it's going out of fashion, which it may well do! The only thing that keeps the dollar alive is forcing the rest of the world to buy oil in it. If the BRIC nations and the other nations seeking to join the BRIC nations are all making deals with each other to trade in they're own currencies at some point no one will want the dollar. If it was true that hyper inflation happened gradually it would be unlikely to happen at all because once a currency had devalued by 100% to many people would say this has got to stop, what actually happens is at some point their is a loss of faith in a currency and people stop excepting it that sends shock waves through the system and in a panic to get out of said currency it totally loses it's value.

Originally Posted by BCG Jason

BVL I believe you are incorrect in your last statement, surely hyperinflation is about how other countries value your countries currency. If the IMF step in or there is a blockade like Iraq or Iran what then?

At the moment it is is unlikey because we are part of the international power structure yet I do agree with Roland things could change.

Well it is true that governments cause financial crisis. They are doing very well at the moment with Iran. It is predicted that oil will jump 30%. That is just what the world's economies can do without. However, a free market is stable and inflation will not suddenly jump for no reason. It will adjust according to economic parameters like the money supply, and so one will not jump without a step change in another parameter. This is often what socialists try and whip up fear about. They say an untamed free market could run wild and that is why we need the government to regulate it. Well the opposite is true. The market is stable and governments are unstable, unpredictable, often irrational and nearly always stupid. It was their intervention in the 1930s apparently that made the situation so much worse.

If the BRIC nations and the other nations seeking to join the BRIC nations are all making deals with each other to trade in they're own currencies at some point no one will want the dollar.

There is no such thing as 'all' in a market. The market is a balance of every possible situation. Some will use dollars and some wont. It's up to the American public how well the American economy does. They will fix it because they are all democrats. BRIC countries are backwards politically and I expect their success today is just another bubble built on hype like you are repeating. My friend just got back from Brazil a few months ago. He tells me people get murdered over there and the police don't even bother about it. It's a pi$$hole and the same with Russia, which is run by the Mafia.

BVL

You don't seem to be able to associate what Murry Rothband was attempting to say in his speech in your other thread, he was talking about why communism failed and the fact the rest of the western world will go down for the same reasons.

As for America it is no better than Brazil.