Talking on CNBC Friday, billionaire investor Jim Rogers, CEO of Rogers Holdings and commodities expert, said we are facing an "inflation holocaust" because of government interference in the markets. He's right of course, as governments will have to issue more debt and print more money in an attempt to not allow the market to clean itself out as it has for a "few thousand years."
It is amazing to see the government to take these unprecidented steps in order to make it look like it has some value to the market. It's main and really only purpose in this arena should be to enforce contracts. Nothing else.
But as Rogers and many others are pointing out, this is in reality setting us up for an inflation disaster as the artificial propping up of poorly run companies will make us all pay a lot more for goods and services in the long run. The government and politians are counting on the general population to forget this as this go ahead in time.
Rogers added that we should simply allow businesses and people to go bankrupt in order to clean out the excesses and unhealthiness in the markets. That is how it's always been done in the past, and each time things start over again with many helpful lessons learned from the mistakes made.
In a desperate attempt to make prove they have relevancy to the general populations across the world, governments and politicians are scrambling to interfere and tread in places they have no idea of the consequences of their actions.
There is nothing more short-term in thinking than what is being wrongly foisted on people in American and across the world at this time. As Jim Rogers says, we are setting ourselves up for an inflation holocaust that will happen based solely on the actions of the U.S. governement, and other governments at this time.
Since when don't human beings have to go through failures and mistakes? When have we designated taxpayer dollars of responsible people to be used to bailout finance and business leaders for the poor decisions they've made?
As Rogers concluded concerning the upcoming G7 meeting where government leaders of the stronger economies are getting together in order to attempt of figure out a solution, "What they (G7 leaders) need to do is go down the bar and leave the rest of us alone."
Referring again to the usual solution by governments, printing more money and offering more debt will do more harm than anything else. It simply needs to be allowed to play out as it usually is. There's nothing the G7 countries will be able to do other than that.
These are markets made up of billions of actors and consumers. Nobody, no matter how much they try to convince us, is able to centrally plan or salvage this mess. Socialism has already proven itself a failure, and this is nothing more than corporate socialism.
As many people know in their individual lives, when they live in excess they will have to go through some real pain in order to overcome those excesses. For someone to interfere with that isn't kindness, but a form of hate, as they enable the person to continue on in their folly.
It's no different with government interference in the marketplace. To shore up poor management and irresponsible decisions isn't a form of help, it's only reinforcing terrible choices and behavior, and possibly setting the rest of us up for more and more significant pain in the near future.
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Rogers maintains commodities will continue to be a good place to put your money. We're simply on pause for the time being.
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