Bow tie billionaire Jim Rogers, a successful investor and a believer in commodities, is positioning himself to thrive off of the falling dollar and crashing economy. He openly states that he is long commodities and he is currently shorting stocks. He is an unconventional thinker and someone who has made a ton of money thinking outside of the box.
This amazing interview is currently featured on CrushTheStreet.com, to watch CLICK HERE!!!
Johann Gutenberg and his invention of the printing press has not only revolutionized religion, but it has become the means for which economic growth is depended on by nations today. As we are coming to find though, unsustainable actions are being reflected in some of the recent statistics.
Factory orders for the market slumped in April. Car sales dropped 10% in May. The ISM’s manufacturing index dropped to 53.5 in May, the slowest pace since September 2009. Consumer confidence slipped from 60.8 from 66 in April (lowest for the year) and Median home prices are at a new low.
Well the pulse of the market is grim and anticipating the end of QE2. It’s hard to say exactly when the government is going to stimulate the economy with new programs, but with a presidential election coming up in 2012, don’t be surprised if short term stimulus comes around to timely boost polls and numbers.
Eric Janszen of iTulip.com isn’t too optimistic about the economy either, in fact he stated, “Consider the fact that total unemployment fell by 2.6 million jobs since the year 2000 while local, state, and federal employment grew by 1.8 million… In 2001, 14 million were employed in local government and 17 million in manufacturing. Ten years later, 15 million are employed in local government and 12 million in manufacturing.” Between the public and private sectors in the U.S., they are spending $3.5 trillion in just interest for debt incurred years and years ago. What’s worse is that the money borrowed was spent on consumption rather than capital investment and is weighing down the economy. No growth, no real jobs, and no real wealth!
Banks are still not lending the way they “should” and according to Betsy Graseck of Morgan Stanley, she believes this is because homes are still expected to tumble. In fact, she is predicting another 10% to 12% over the next year. So much for a recovery! You would think if things were getting slightly better, even when there are slight pull backs in numbers, we wouldn’t be seeing new lows time and time again for year over year.
More dollar concerns… Many have been predicting the demise of the dollar and its becoming more mainstream common knowledge as time goes on. Guan, head of the international payment department at SAFE said in the article on the website of China Finance 40 Forum, a Beijing-based-think-tank of Chinese economists stated, “We must be alert of the economic and political risks in excessive holdings of U.S. dollar assets.” The world is still dependent on the U.S. as the world’s superpower, but how long can this possibly last? CrushTheStreet.com believes that the future for economic growth and boom will be in Asia.
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