3/8/10 Jim Rogers on Bloomberg: Greece Bankruptcy Would Be Good for Euro!

[pretorious700]

Betty is gorgeous, and dumb as a post.

[Maxobillion]

@pretorious700 The way all women should be.

[Cadmium77]

Wasn't Jim once the right hand man of George Soros?

I judge a man by the company he keeps. He keeps company with a criminal dirtbag.

[jeremyliu122]

I'm not particularly interested in the matter at hand, more so the news anchor.

[Zeldovich]

Rogers is so ignorant. Europe is facing disinflation and or deflation and this idiot wants a stronger Euro.

[Invirtuo]

You want a long-term strong Euro. Deflation is a short-term issue, inflationary pressures will soon resume and intensify. Europe's greatest threat is rampant inflation

[Zeldovich]

@Invirtuo

It's disinflation and deflation as far as the eye can see. The PIIG countries suffer from boom level prices, witout prospects for anything like a rapid recovery. Apparently, you don't understand economics.

[Invirtuo]

I live in a PIIG country actually and am asecond year EcFi student. It's interesting to see how a 6% deflation rate has given way to price stabilisation. The deflation was a symptom of inventory being run down in the uncertainty of the crisis and massive overcapacity in some industries. Stocks are being replenished and liquidation is reducing supply. Coupled with the monetary expansion and excess liquidity it is clear prices will rise in late 2011.

[Zeldovich]

@Invirtuo

lol Oh really? Well, how much of a price run up was there in your country during the boom? And where are prices now? What will support the current price levels going forward, without a bubble? lmao

What's the nGDP in your country right now?

[Invirtuo]

@Zeldovich The CPI rises were extraordinary and were fuelled by inappropriate monetary policy emanating from the ECB, which was tailored to overcome the perennial sluggishness in the large continental welfare dirigiste states. The price rises were real and not merely nominal so Ireland became uncompetetive. Severe price drops were necessary to reposition the economy. Falling prices in this case is not the same as the deflationary spiral economists fear.

[Zeldovich]

@Invirtuo

 Benefits of inflation toward trend nGDP:

1.) Keeps unemployment constant by temporarily lowering real wages.

2.) lowers the real value of debt

3.) confines economic losses to the magnitude of the malinvestment.

4.) lowers the trade deficit, providing even more jobs

5.) doesn't threaten inflation at full capacity, as reserve requirements can simply be raised when real GDP growth is again at a 3% trend pace.

6.) actually keeps us out of recession. 9 minutes ago

[Invirtuo]

@Zeldovich 1) In the short term true, in the long term it impairs investment time preferences and creates a host of other problems.

2) Well, that is indisputable but I can't see how wiping out savers and creditors will encourage long term investment

3) Your meaning is completely opaque here

[Zeldovich]

@Invirtuo

1.) Provide evidience for this implicit inflation-sensitive temporal capital structure argument in economies below full capacity.

2.) Temporarily decreasing the real value of debt causes irresponsible lenders to take a hit, while helping to feed aggregate demand. This takes care of the balance sheet problems that can cause economies to languish after financial crises.

[Zeldovich]

@Invirtuo

Savings benefit more by long term aggregate demand maintenance than by temporary savings increases during recessions. Of course, many unemployed and under-employed workers will spend down their savings anyway.

[Invirtuo]

@Zeldovich Well why didn't you just say you were a Keynesian. I would have stopped taking you seriously ages ago

[Zeldovich]

@Invirtuo

These are monetarist perspectives, not Keynesian. Not knowing the difference only increases my suspicion that you don't even understand basic economics. That's econ 101 stuff.

Have you even read Keynes?  It sounds like you're just parroting this Austrian crap that no credible economist has taken seriously since the 1930s, with the exception of Hayek, who won his Nobel for non-Austrian work.

[pretorious700]

@Zeldovich lol, "credible economist" ozymoron much, moron?

[Zeldovich]

@Invirtuo

And have you read Friedman? This is actually more of a Friedman perspective. Anyway, you should be embarrassed on multiple levels.

[Zeldovich]

@Invirtuo

3.) Money velocity is reflected in nominal GDP, the constancy of which is the money supply / real GDP. The US, for example, typically has a 5% nGDP level at full capacity, with 2% inflation and 3% real GDP growth. So, when real GDP falls, an increase in the money supply will keep money velocity constant, with the hit in real GDP being the actual damage done to the economy due to problems such mortgage defaults. This makes the magnitude of an economic shock clear.

[Invirtuo]

@Zeldovich 1) In the short term true, in the long term it impairs investment time preferences and creates a host of other problems.

2) Well, that is indisputable but I can't see how wiping out savers and creditors will encourage long term investment

3) Your meaning is completely opaque here

[Zeldovich]

@Invirtuo

Well, how high are prices now compared to pre-bubble trends?

[Invirtuo]

@Zeldovich Prices have now stabilized and some prices increases can be observed. Nominal GDP was decimated in Ireland, collapsing to about 216 billion euro, down about 20%, which is a veritable depression. Low or negative inflation will continue until late 2011 but then inflationary pressures will resume. There has been so much liquidity released into the system that the MV=PY formula dictates inflation will hit us hard when the activity slump is over.

[Zeldovich]

Your definition of depression is puzzling, as you pulled it out of your ass. That's the most ridiculous operational definition I've ever seen.

What is the current spread between inflation-protected instruments and non-protected equivalents in your country?

And that ancient money velocity formula was never correct. The real measure is the monetary aggregate over real GDP, which gives nominal GDP. Wow, this is basic economics. You must be on the finance side of things.

[Invirtuo]

@Zeldovich A depression has no formal definition so everybody "pulls it out of their ass" so to speak, mr expert.

I am not precisely sure but I would guess the spread is widening. It ain't ancient it is about forty years old and I don't see how the price level measure in any way contradicts Friedman's Monetary velocity formula (which is accepted by most mainstream economists).

[Zeldovich]

@Invirtuo

Why are you commenting about future inflation without even having check those spreads? lol What school do you go to anyway?

And that formula for money velocity is a mere accounting identity and is not part of modern macroeconomics at all. Ask your econ professors.

[rmpeople]

Love Jim Rogers - but a horrible interview..... Betty... think of some better questions.

[jb2134]

It's like he's explaining something to a child.

"Do you think that the speculators and the hedge funds went out and ran up a huge deficit. No. The greeks did it and the greek politicans did it."

How stupid can you be to believe political rhetoric all the time? If you think with half a brain, and take the other side of political rhetoric, you can be a billionaire like jim.

[AntiPsychopath]

you should be worried about grown ups

[at1212b]

This is way better than CNBC.

[takerdust]

hilarious how Mao is featured on the RMB notes

[ronpaul2008rocks]

I love Jim, but he seems to be a little whiny here like it's that time of the month. Maybe he's just exasperated by all the money printing.

[throwerofturds]

@ronpaul2008rocks jim is always got a whiny way about him , he is trying to get a message across and here he is being interviewed by what appears to be : dumb littlle children . you cant blame him a bit

[ronpaul2008rocks]

Don't get me wrong. I love to listen to him. And I agree with him 100%. I am very glad he's out there getting on TV and voicing his opinion.  He does a great job.

[iamubik]

fhrhrh

[yourmain]

Sparr? What a cunt, I can't beleive Jim comes on their stupid moron show and even talks to these idiots...GOD makes me so pissed off. Just focus on sucking cock biatch and don't worry about econ...

[giusepp8]

The new bloomberg cut-spending policy... for now on no more desks and chairs !!!!

[jb2134]

When I become a billionaire, I want to wear a yellow bowtie :)

[trent2429]

A striped shirt and a polka dot bowtie (and is that a matching vest?!)... Legendary.

[tseland]

It's matching suspenders. :-D

[residentzombie]

Well Jim has recently shorted gold to long the dollar, but this is only temporary. He will revert back to this ratio soon enough.

[liammulrooney]

@residentzombie

without a doubt Jim Rogers has not shorted Gold in the recently. He has gone long the dollar temporarily alright.

[ForceOfWizardry]

This chick knows how much Jim Rogers is worth!

Easy pussy for Jim!!

[SergLLLL]

Indeed a very very nice pussy!

[dinkolino2]

She looked very itchy there :)

[bunkermunk]

Jim must have been jet lagged. He was more fiesty than usual with Betty. BTW, he also said he "happens to own some gold and expects it to go to 2000 by 2019"

[residentzombie]

Jim's portfolio is as follows: 80% in gold, 10% in US Dollars and 10% in Euros.

[liammulrooney]

@residentzombie

This is also - completely incorrect.

[Entropy137]

Not that, Jim did say a while back that he owned more dollars than before because he expected a dollar rally. Turns out he was right.

[bobbyb1978]

Jim owns a lot of other commodities and agriculture. Much less gold than 80% I believe.

[residentzombie]

In terms of money he has in savings, not his investments. Jim doesn't consider gold to really be a commodity in the typical sense, he sees gold as money.

[Entropy137]

No silver? no sugar? no yen? Do you really expect anyone to believe that?

[residentzombie]

I just heard Rogers announce like a month ago what his savings strategy was in this inflationary environment. Remember the Yen already had it's rally. If you haven't own the Yen a year ago, you missed it. He may have said precious metals instead of gold, but rich people ALWAYS prefer gold over silver for themselves due to the high intrisique value of it. I have yet to meet someone invested in gold that doesn't own silver though.

[GypsyHustled]

I think Jim is flirting a little here with Betty. :)

[navtel]

I think Jim is flirting a little here with Betty. :) >>>>

betty should be wearing a short pleated skirt..

[SergLLLL]

HE can just call hel and ofer her 1 mill for a night. It is easier.

[kurktchian]

Jim flirts with everyone ! :D old spice