Jim Rogers: “This Is Too Insane–And I’m Afraid We’re All Going To Suffer For The Rest Of This Decade”!

• Jim Rogers: “This Is Too Insane–And I’m Afraid We’re All Going To Suffer For The Rest Of This Decade”! 
  by Tekoa Da Silva, http://bullmarketthinking.com/ 
  I was able to reconnect with Jim Rogers this morning out of Spain, legendary co-founder of the Quantum Fund with George Soros, author of Hot Commodities, and chairman of the private Beeland Holdings.
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  It was an especially powerful interview, as Jim spoke towards the relentless downward pressure on gold, the upward explosion in interest rates, central bank money printing, and how to protect yourself ahead of the disastrous times he sees coming.
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  When asked if we’re seeing forced liquidation leading the smash down in gold this morning, Jim said, “We certainly are. There are a lot of leveraged players who are now being forced to sell. Usually when you have this kind of forced liquidation, you’re getting closer to a bottom, maybe not the final bottom, but certainly close to a bottom. I even bought a little bit [today].”
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  With regard to the intense bearish news stories being published on gold, Jim suggested investors shouldn’t ”Pay [much] attention to other people. I pay attention to what’s going on…Obviously with gold collapsing I know about that—but I don’t listen to other people.”
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  Over the last few years Jim has spoken extensively on shorting government bonds, and more recently, the 10-year U.S. treasury yield has rocketed higher (with a corresponding collapse in value).  When asked if now is a good time to be covering those short bond positions, he explained that, “I’m grappling with that question as we speak…I’m not short government bonds, [but rather] I’m short junk bonds on the theory that they will suffer the most when the bond market finally breaks. The junk bonds will go first, [along with] emerging market bonds. So I’m trying to figure out what to do, but I am not covering my shorts [just yet].”
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  Commenting on the Fed’s historical ability to control the bond market, Jim said, “We’re getting to that point where either one of two things are going to happen; either central banks are going to stop all this [money printing], or the market is going to force them to stop it. It looks like we may be having a juncture of both…where the Fed is getting worried…and at the same time, the market is jumping in and saying, ‘Yes, it’s insane what you’re doing, and this has to end.’ So we may have a healthy convergence of both. And if it’s not ending now, it’s going to end sometime in the next year, because this cannot go on—it’s too insane.”
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