Jim Rogers Paints Bleak Scenario

In a June 8 interview on CNBC Jim Rogers paints a bleak outlook for the US economy.  Much of what he says coincides with Ron Paul's 2008 book End the Fed.  Rogers is saying that he has NO US STOCKS. I am thinking in terms of high dividend yield stocks like Philip Morris (PM and MO) and Verizon (VZ). He thinks that the end of quantitative easing two, which is resulting in the stock market correction of the past few weeks (and it's bad today) will be followed by a QE3, resulting in a classic hyper-inflation and economic collapse.

It would be nice to hold the yuan, but Everbank does not make a yuan CD available.  I agree with Rogers about waiting for a dip to buy gold and silver. I'm crossing my fingers for $25 or $28 silver, in which case I will get back in.

I was just reading Murray N. Rothbard's What has Government Done to Our Money? which is an excellent, condensed version of his Mystery of Banking.  The issues that Rothbard talks about in his books, written several decades ago, are alive today.  Rogers's pessimism is realistic. But what to do? Foreign stocks haven't performed that well recently either. A collapse in the US economy will bring down the world.  BRIC hasn't been doing well, even if in the long run there is more reason for optimism in China and Brazil.

If there is another 2008 collapse it might be wise to recall what happened in 2008. The dollar went up, not down. I'm not a fan of the dollar, but the short term fluctuations that the Fed has caused are incredibly destructive to the small investor who risks his livelihood because of them.

The current Federal Reserve Bank system is a complete failure. Price instability, dozens of booms and busts since 1913, the Great Depression, the 1970s Stagflaton which hurt me personally, the recent financial crisis, the lack of jobs in America, the destruction of good jobs, all of this has come about because of the Fed and because of the legacy media and the failed two-party system.