Business

Jim Rogers: Fed Has No Clue, Should Be Abolished

Jim Rogers, the chairman of Rogers Holdings and Beeland Interests stated that the Federal Reserve and its Chairperson Janet Yellen have no clue, during an interview on Mornings with Maria at Fox Business News.

Jim Rogers

The Federal Reserve is expected to make a decision during its upcoming meeting on Thursday and Friday regarding the interest rates.

According to Rogers, Yellen “doesn’t know what she’s doing. She shouldn’t be there.” He explained that Yelle is “an academic and she has no clue—none of them” in the Federal Reserve. Rogers added that the government “should abolish the Federal Reserve” and its official should resign.

Rogers emphasized, “We have this huge artificial printing of money for six years now, and we’re all gonna pay the price.”

Rogers said low-interest rates were destroying investors

Rogers emphasized that the markets are being manipulated because of current near-zero percent interest rates. He said the low-interest rates harmed investors and people, who are saving their money.

“Low-interest rates are destroying the people that save and invest. Pension plans, trust companies, insurance companies — we’re destroying all the people that save their money for a rainy day and now they are being ruined… to bail out people who get it wrong — who ran up huge debts who didn’t have the money. We are ruining the country with this idea,” said Rogers.

China’s debt problem is a concern

During the interview, Rogers also indicated that people must be concerned about China’s debt problem. He noted that China saved a lot of money in 2008 and spent a huge amount to help save us. However, China accumulated debt, and its current debt is horrendous, which would cause a big problem in the future.

“We haven’t had an economic slowdown for over 6 years in the world–we’re overdue… and the next time it comes it’s going to be a disaster because the debt is so much higher everywhere. Eventually, the market is going to raise interest rates.”

In a separate interview with Yahoo Finance, Rogers said the Federal Reserve would probably raise interest rates this week and certainly this year.
He speculated, “What’s going to happen is, the rates are going to go higher, markets are going to go down, people are going to call up and say, ‘You must save civilization.’ They’ll panic [referring to the Federal Reserve] and then come riding to the rescue” by easing monetary policy again.

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