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Sunday, December 14, 2008

Jim Rogers calls most big U.S. banks "bankrupt," opposes banking sector bailouts

One man’s monetary stimulus is another man’s industry bailout.

Yesterday, I reported that former EnCana CEO Gwyn Morgan opposes industry bailouts, like those being proposed for the North American auto sector, and instead supports a strategy of monetary stimulus and efforts to enhance banking sector liquidity.

Legendary investor Jim Rogers thinks pumping money into failing banks is just another bailout that “rewards weaker lenders with new capital.” Speaking by teleconference at the Reuters Investment Outlook 2009 Summit, Rogers said most the largest US banks are “totally bankrupt" and should be allowed to fail.

As was reported by Western Standard blogger Omar Abu Hatem, Rogers thinks America’s central bankers are working to destroy the US dollar in a doomed effort to improve competitiveness and stimulate the economy.

Stephen Johnston with is Agcapita thinks “the US is clearly committed to inflation as the only way out of its current mess.” The plan: destroy the dollar and monetize the debt.

While I’ve been critical of the Harper Conservatives, they seem to be the lone voice for relative economic sanity in the world. Prime Minister Stephen Harper and Finance Minister Jim Flaherty believe now is the time for spending restraint and a return to fiscal conservatism, while the rest of the world is eagerly following the failed path of Keynesian economics with stimulus mania.

Posted by Matthew Johnston

Posted by westernstandard on December 14, 2008 in Economic freedom | Permalink

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Comments

A question related to this US banking crisis is why hasn't Bloomberg, or anybody else for that matter, been able to access the information as to who were the lucky recepients of some $2 trillion from the federal govt?
Access to information requests have all been denied.
And $2 trillion is a lot of public money going to unidentified people without knowing what kind of collateral the mysterious ones put up for the money.

Since the US Federal Reserve is not a US govt department, I wonder if the US govt thinks it would be bad optics if people found out exactly who and what the Federal Reserve is.

Posted by: Rocky Thompson | 2008-12-14 3:52:53 PM


More like working to destroy the US dollar so they can push for a one world currency.

Posted by: Pete | 2008-12-14 6:08:10 PM


Rocky, that's an interesting observation.
One might think that the governments of the day think they can do whatever they want with impunity, without any responsibilty whatsoever to the people they're supposed to represent.
Nawwww, couldn't be! That would be a tyranny of sorts and we don't have that here, do we?

Posted by: JC | 2008-12-15 8:03:55 AM



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