Michael Gracie

We Are Facing an ‘Inflation Holocaust’

Snippets from Jim Rogers:

The way to solve this problem is to let people go bankrupt. “Then you will hit bottom and then you start over. The people who are sound will take over the assets from the people who aren’t sound and we will start over. This is the way the world has worked for a few thousand years…

The current rescue plans, which will force governments to issue more debt, print money and flood the markets with liquidity, will flare up inflation after the crisis is over and will create worse problems…

We had the worst excesses we had in credit markets in world history. We’re going to have to take some pain…

Many people bought 4-5 houses with no money down and no job… you think we’ll just say well, that’s too bad, we’ll start over and nobody loses their job? Be realistic.

And this:

We’re setting the stage for when we come out of this of a massive inflation holocaust.

Jim Rogers has been right about as much as Nouriel Roubini, which is to say an awful lot. I do, however, find it somewhat odd that their prospective remedies seem to differ quite a bit.