“Keynes said that in bad times you spend your reserves; he did not say spend your grandchildren’s reserves” - Jim Rogers, 2020
Talking points on this podcast:
- The US economy: Is it set to be the worst in a lifetime?
- Gold, Silver, USD – How will coronavirus impact their prices?
- Safe havens: Just how safe are they?
This time on Trading Global Markets Decoded, our host Martin Essex is joined once more by Jim Rogers, author of the bestselling book Investment Biker. Based in Singapore, Jim is an American investor and financial commentator, Chairman of Beeland Interests and was co-founder of the Quantum Fund and Soros Fund Management.
At this critical time, Jim offers his thoughts on the US economy, USD, global stocks – and what, if any, safe havens are left. You can listen to this podcast by clicking on the YouTube link above or by using one of the alternative platforms listed below.
The Future of the US Economy
Talk begins on the US economy – and Jim’s outlook remains as bleak as at the time of the previous DailyFX Jim Rogers podcast in August 2019. “I told you last time – the next time the world has a problem it’s going to be the worst in my lifetime.
“It is the worst in my lifetime and the reason I said it was because there was so much debt [that had] built up in the world. In 2008 we had a big problem because of too much debt; since then the debt everywhere has skyrocketed, even in China.”
Jim points to nearly every government in the world having started printing and spending staggering amounts of money. “America was already the largest debtor nation in the world, and along came [coronavirus] and America has added trillions and printed trillions more. This is going to be a serious burden for the world economy.”
As Jim sees it, the ten-year bull run in US stocks also made a market slump overdue in addition to an economic slump, and coronavirus was just an excuse. “There would’ve been some reason. Some places were already slowing down, and along came the bubble and now we have the excuse. We always have an excuse and here it is.”
Gold, Silver, USD and Safe Havens: How Safe?
So, with this outlook, what does Jim have to say about the viability of gold, USD, and other assets traditionally viewed as safe havens? “I stopped buying gold and silver in 2010 and I started buying again last summer. I bought more recently and I will probably continue to buy both gold and silver; more silver than gold now because silver is down much more.”
On USD: “It’s not a safe haven, but [the important thing is] people think it is. I still own a lot of US Dollars and I haven’t sold any. It’s going to get overpriced and it could conceivably turn into a bubble, depending on how bad things get in the world.”
USD being Jim’s currency of choice is explained in part by the unattractiveness, as he sees it, of the alternatives. “Right now with the Euro, many people are skeptical. British Pound? Please. I love the UK, but that’s not even a semi-sound currency any more. The Swiss Franc is being so debased, and as for the Japanese Yen? Japan has staggering debts, with a population declining for ten years.
“[So] which currency? That’s part of the problem.”
For more ways of listening to the DailyFX podcast, click on one of the additional channels below.
- iTunes: https://itunes.apple.com/us/podcast/trading-global-markets-decoded/id1440995971
- Stitcher: https://www.stitcher.com/podcast/trading-global-markets-decoded-with-dailyfx
- Soundcloud: https://soundcloud.com/user-943631370
- Google Play: https://play.google.com/music/listen?u=0#/ps/Iuoq7v7xqjefyqthmypwp3x5aoi
- Spotify: https://open.spotify.com/show/6FtbTf4iGyxS0jrQ5jIWfo
