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Jim Rogers: Fed Will Launch QE3 by Q3

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July 20, 2011 – Comments (3) | RELATED TICKERS: GLD , SLV , IPSU.DL

International investor Jim Rogers expects a third round of quantitative easing by the third quarter of this year.

"It's the wrong thing to do but that's all they [US policymakers] know to do. They are not very smart people so you better own commodities," says Rogers.

"They will see things not getting better and will do what they do."

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3 Comments – Post Your Own

#1) On July 20, 2011 at 7:34 PM, silverminer (30.99) wrote:

Thanks for posting!

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#2) On July 21, 2011 at 11:29 AM, leohaas (31.85) wrote:

I don't think it is anywhere near as a sure bet as Jim Rogers claims it is. But I do know this: Bernanke has been very clear that there will be more easing if necessary. So if annualized GDP growth does not return to about 3% for Q3 and Q4 of this year, and CPI does not go a lot higher than it is today, QE3 will happen.

I suggest adjusting your portfolio accordingly. That's what I will do as soon as this debt ceiling thing is sorted.

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#3) On July 21, 2011 at 3:44 PM, Frankydontfailme (27.20) wrote:

I don't see how we avoid it.

I read an interesting theory on Bryan Caplan's blog (can't find the specific blog post at the moment). http://econlog.econlib.org/authorbcaplan.html

 Since we have a mandatory minimum wage, and a mandatory minimum wage necessarily increases unemployment (this is basic economic theory, excepted by both the Austrian school and neoclassical economists), and there would be intense negative political pressure if we reduced or eliminated minimum wage.... the only way around is to inflate the money leading to lower real wages.

A nice theory considering the fed considers high employment as part of its doctrine.

I recommend reading Bryan Caplan's blog, no matter who you are. It provides a great respite for Austrian economists, and a great respite for neoclassical economists (he knows and understands both schools). 

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