Ali’s blog

Mostly quant stuff with occasional digressions

Jim Rogers’ opinion

Posted by alifinmath on February 26, 2008

Today in the Irish Examiner:

Co-founder of the highly successful Quantum Group with George Soros in the 1970s, he said the world’s largest economy was already in recession and that it would last several years at least.

In Dublin yesterday to address a conference sponsored by Merrion capital, Mr Rogers accused the US authorities of “lying” about the level of inflation and about the health of the economy.

The excesses of the financial markets in the US over the past 10 years, where financiers enriched themselves without any gain transferring to the rest of the economy, leaves the US and the rest of the world with a high price to pay.

“The US is in recession. I know the government says it’s not, but it’s lying,” he said.

What’s going on in housing is worse than recession at this stage and the same is true of the motor industry which has had its worst year since 1985, he said.

The amount of machinery sold this year hit its lowest in 50 years, he said.

“I would like to know what’s doing so well that’s compensating for all these areas that are in recession,”, he added.

Apart from farming, nearly every aspect of the economy is under-performing.

The US is in recession and it’s going to get worse,” he said.

And the US Federal Reserve is making the same mistakes as the Japanese Central Bank made in the ’90s and repeating mistakes that the US made in the ’70s, he said.

They are “printing money” in an effort to prevent a recession in order to help “their friends in the financial markets”, he said.

Yep, I can’t dispute any of this, and it reflects my own (humble) opinion.

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