Jim Rogers: Great Depression 2.0?

Jim Rogers is not only one of the most successful investors of our era, he’s also an avid scholar of history.

Seeing that the world is buried under an unprecedented mountain of debt that is requiring more and more central planner intervention to keep from imploding on itself, Jim says history is clear on what happens next.

A clearing of the debt either via massive default, or destruction of the currency it’s denominated in.

He looks into the future and sees a terrible reckoning ahead; one he predicts will be “the worst economic crisis of my lifetime” – and Jim is 78 years old.

So where should investors look to preserve the purchasing power of their wealth against what’s coming?

Jim highly recommends precious metals and other commodities as an important part of the solution. As an overall index, commodities are the cheapest they’ve ever been vs the general stock market in over half a century:

<img class=“aligncenter size-medium” src=“https://peakprosperity.com/wp-content/uploads/2021/09/ElEYap_WkAAMugY.jpeg” alt="“Commodities vs S&P chart” width=“2048” height=“1183” />

Like many of the previous guest experts on our program, Jim maintains the near-term environment will be one of the most challenging times to invest in our lives.

Which is why now, more than ever, is the time to partner with a financial advisor who understands the risks in play, can craft an appropriate portfolio strategy for you given your needs, and apply sound risk management protection where appropriate:

Anyone interested in scheduling a free consultation and portfolio review with Mike Preston and John Llodra and their team at New Harbor Financial can do so by clicking here.

And if you’re one of the many readers brand new to Peak Prosperity over the past few months, we strongly urge you get your financial situation in order in parallel with your ongoing physical coronavirus preparations.

We recommend you do so in partnership with a professional financial advisor who understands the macro risks to the market that we discuss on this website. If you’ve already got one, great.

But if not, consider talking to the team at New Harbor. We’ve set up this ‘free consultation’ relationship with them to help folks exactly like you.


This is a companion discussion topic for the original entry at https://peakprosperity.com/jim-rogers-great-depression-2-0/

nhuvelle -
I’ve been slammed for the past few weeks, busy with preparations for last weekend’s seminar.
But during that time I did notice several comments from you that didn’t meet the decorum and/or constructive requirements in our Site Posting Guidelines.
Your posts show a narrow “Bitcoin above all!” worldview as well as an intolerance of others who don’t share your opinions.
Your latest comment here is another example:

Jim Rogers doesn't understand bitcoin Another financial advisor telling me to stay away from the best performing asset of all time. Great.
At no time in this interview was bitcoin even mentioned. Yet you felt it necessary to once again try to hijack a discussion towards your pet complaint. I have just unpublished your last comment and removed your posting privileges for the week. Hopefully a short time out during which you can study our Site Guidelines will be sufficient to allow you to return to commenting in a way that comports with the rules everyone else abides by.

While we don’t really need more reinforcement of why we are so screwed, I found this to be a most excellent read:
An excerpt:

"...Why was this permitted to happen? Well besides the obvious intention to induce “a controlled disintegration of the economy” as Volcker so coldly stated, the idea was always to create the conditions described by the late Maurice Strong (sociopath and Rothschild cut-out extraordinaire) in 1992 when he rhetorically asked:
“What if a small group of world leaders were to conclude that the principal risk to the Earth comes from the actions of the rich countries? And if the world is to survive, those rich countries would have to sign an agreement reducing their impact on the environment. Will they do it? The group’s conclusion is ‘no’. The rich countries won’t do it. They won’t change. So, in order to save the planet, the group decides: Isn’t the only hope for the planet that the industrialized civilizations collapse? Isn’t it our responsibility to bring that about?”
FYI Maurice Strong is a Canadian, and one who should be much reviled, IMHO. An excerpt from the linked article:
"...A primary figure in the oligarchy’s tool box of sociopathic agents who shaped this program for zero sum thinking over the years is a Canadian-born operative by the name of Maurice Strong. Despite having died in 2015, Strong’s life and legacy are worth revisiting as they provide the modern reader a powerful, albeit ugly insight into the methods and actions of the British-Deep State agenda that so mis-shaped world history through the latter half of the 20th century. Having dealt in previous articles with Strong’s role as a recruit of Rockefeller assets in the 1950s, an oil baron, vice president of Power Corporation by 30, Liberal Party controller, Privy Councilor, and founder of Canada’s neo-colonial external aid policy towards Africa, we will focus here on the role Strong has played since 1968 in subverting the anti-entropic potential of Canada and the world at large. It was through this post-1968 role that Strong performed his most valued work for the genocidal agenda of his British masters who seek to reduce the world population to a “carrying capacity” of less than a billion.
Yep, we are screwed. Definitely hard times ahead!

Not sure where in the chain it is happening but after a number of posting attempts over the past several months nothing of import is making it up on the board.

because btc is just energy on a thin wire? Someday ‘they’ cut the cord. #incandescentlightbulb

Great lineup as usual with Mr. Rogers here. There was certainly nothing groundbreaking in what he said, just his insistence on using history as a guide and a little common sense. He had a book he wrote for his kids a few years back and the end was full of quotes. To paraphrase, “anything popular should be avoided at all costs” was among my favorites. With the election looming in a couple days I have this feeling of unease. Just like 2016, I wonder if the media is going to get the narrative all wrong on where many in America sit. It also seems chaos is almost baked into the cake.
Anyways, was glad to see mention of the energy sector here. Having been long term investing in PM’s, a homestead, and more recently mining stocks and crypto I feel that energy is the next place I want to plant some money. With every calorie of food requiring something like 10 calories of energy to produce, it seems to be a terribly undervalued and even hated area. I saw a Tweet recently that claimed Energy was roughly 30% of the market in the early 80’s and now around 2%. Knowing that it is the master resource and money printing is the way forward, hard to see it as a big loser in the future.
This one is going to be hard to top, but if you get Marc Faber I’d be pleased. He always makes me laugh. Thanks, TJ

That was a reflective interview of a man clearly at peace with himself and the world. My comment: If I’m half as sharp as Jim if I reach his age I’ll be a happy man.
2. Around 14 min, Jim brings up how Venezuela was recently quite rich, but now is a complete basket case. His point: how quickly these things can change. My comment: Few cultures have the human capital to maintain political stability for long. Venezuela lack the human capital for peace and prosperity, which are the exception, not the rule, in human history.
3. At 15 min, Jim explains how many people got rich in times like these: times are dangerous, and most get hit hard, but many people make fortunes. My comment: Fully agree. I think this is the opportunity of a lifetime. However, I think the reality of the world has changed since Jim’s era, and the future is unlikely to look like the past so Jim’s thinking that worked so well for him back in the day is not the path to wealth this time around.
4. Agree with Adam’s comment at 16 min, on how we are all just trying to avoid becoming collateral damage. My comment: Amen. And I don’t know why Jim keeps saying “if” we decide to print our debt away because of course we will print out debt away! And yes, this will make us much poorer if owning the wrong assets. And unfortunately I’m not sure land or gold are the ones that will deliver.
5. I’m amazed at how non-ideological Jim is at his age; he’s forever young and clearly not blinded by the past. I’m impressed by his awareness that the market may not be near it’s top.

At the end of his interview, did Jim Rogers say that if MMT comes then the S&P will be 30,000? He must be referring to big inflation as opposed to earnings improvements.
Wish Adam had asked Jim to expand on that comment. I am thinking something at least similar to MMT is in the future for the USA.
Would anybody care to elaborate on what Jim Rogers meant with this comment?

The market will not got up in value. The dollar will decrease in value

You want to know what increase in value? All the things he mentioned and Crypto

Would anybody care to elaborate on what Jim Rogers meant?
Well, I don't know he JR thinks, but I've said the same thing for years (even without MMT). The public is always fighting the last war, which is 1970s price inflation. Today, we face "asset" inflation in stocks and housing, and the likely reaction may well be a strong desire for the commanding heights of wealth production: stocks. All MMT/socialism represents to me is inefficient but accelerated consumption by everyone. This will drive production and jobs, which will then drive stock profits...and thus an even greater division of wealth. Where else can the rich park their loot besides stocks? Land.houses cannot be easily leave their country so can be taxed into submission. Stocks, the ownership of the production itself, plus the primary vehicle for people's retirement, seem likely be the hot item in the future. Technology keeps putting a ceiling on commodity prices; even oil is not immune to future technology deflation; look how easily we cut back on oil consumption due to Covid. Then imagine more efficiency in transport with higher oil prices, or even a Black Swan like fusion.

No Problem:

Thank you for the Bach link. Amazing music, amazing musicianship, on an instrument I’ve never seen!

Here’s what Schwab has to say on the market - always nice to read the party line.
Bottom line appears to be rebalance. Fees for them, not much for the rest of us.

Barbara, is your point that Schwab suspects markets are overvalued but are pimping stocks for the fees anyway? I’m honestly curious, not snarking here.
If you are, I would comment: doesn’t this seem unlikely? Over a decade of elevated stock prices (by elevated I mean higher than historical value-based metrics would predict, hell, I would argue two decades, since the first tech bubble and Greenspan’s “irrational exuberance”) requires Schwab to get new metrics and a new map of reality? Or at least acknowledge the true “reality” of stock price correction may take over a lifetime to appear…which would make Schwab itself irrelevant?
My comment: I held the “stocks are too high” position but over time developed a new working map that seems to aligns with what I see on the ground better (but which, of course, may still not be true).
One point I thought funny in the article: “Markets historically are not particularly affected by which party wins the White House and/or control of Congress, and that seems to be the case again this year". If this is true, then doesn’t it mean the voting public lacks the power to actually make changes in tax or business policy effecting the markets? That voting doesn’t matter? Oh, from the mouth of babes :-)…

Indeed, a wonderful episode from the Netherlands Bach project. If i’m not mistaken he’s playing a viola de gamba which would be the period instrument for which Bach meant the music to be played. A distant cousin of the cello, if you like. I particularly enjoyed linking the post-apocalyptic feel of the storage silo, which inspired the link here. I’m hopelessly addicted to sharing these hallucinations with die Peak Prosperity menchen.

Breathe easy my friends, this malarkey won’t last forever. I used to fret about these types of predictions and analysis from experts. However, IMO, what their forecasts do is confirm beyond doubt what is predicted in the book of Revelation in the Bible. When i read “one day’s wages for a loaf of bread” (Rev 6: 5), well, that sums the world economy up pretty darned well. Every time i purchase something i compare the price to what it was pre covid and pretty much everything has gone up and keeps increasing. Here in Nashville they passed a 34% property tax increase at the height of the BLM protests. And this was just the tip of the iceberg. 2020 will look like a walk in the park during the coming years. Which is ok, i believe in Jesus and i’m ready for the world to hit rock bottom. Why? Because the sooner this mess explodes, the sooner Jesus comes back and REAL justice will be served once and for all. Isn’t it neat that God gave us a book with the script to the final chapter of this play a long time ago? We know how it ends, and i’m SO looking forward to that epic day! The worse things get, the closer the day of reckoning spearheded by Jesus. He is coming back like thunder and ready to roll over these tyrants. I’ve sold and donated almost everything i own and live with the bare necessities. The less one owns the less taxable liabilities and exposures to the man made trap economy. Plus to me it is SO liberating, i’ve always been a bit of a “gypsy”. I can pick up and leave for the mountain tops whenever the craziness explodes. The more i owned, the more i got taxed, the more i had to worry about someone stealing it, stressing about possessions. Oh, no more of those distracting shackles. I went full on Matthew 6:20 “accumulate treasures in heaven where no thief can steal it”. What a relief it is, to travel light through this world. The next few years are going to get very real. The less material attachments (shackles) we have to the world as it is today, except for day to day survival, the more the spirit is able to relax and prepare for what’s ahead. Just my personal experience. I hope you all find peace during these trying times.

Fascinating take. Yes I agree there is a great deal of freedom in the gypsy/nomadic life. It is however fraught with its own challenges.
This idea of Jesus coming again is also fascinating. It has been 2,000 years. Did he miss his donkey ride? His boat ride? His plane ride? I mean we went most of human history hundreds of thousands of years until 2,000 years ago and then poof there he is. Then he is gone and now 2,000 years later he hasn’t shown up. What’s up with that?
It certainly begs the question of “well maybe he has already been here and we missed him?” Which then leads to another question “just how will you know when he comes back?” Will he walk into St Peters and say “hey pope, good job but I am taking over now?” Just what will he look like? Will he come back as a woman? Will he come back as an African? Chinese? Amazonian Shaman?
Of course the big question is does he get executed once again? Preaching love is not a real popular profession these days as if it ever were.
Good luck on the mountain top. Reminds me of a Sufi story. That will have to wait for another day.

Viola de gambas are played upright, and have frets.
I have no idea what this instrument is. I suspect it’s some type of large 5 string viola.
Beautiful music though.