In my mind there are only three real Economic Gurus in the world today.
The Three Gurus are:
1. Nouriel Roubini, New York University Professor.
2. Jim Rogers, Chairman of Rogers Holding, and ex-partner of George Soros.
3. Marc Faber, editor of Gloom, Boom and Doom report.
These three men predicted the present recession and have made inordinately successful investments for their own accounts. They are constantly interviewed by the world’s financial media and are proclaimed by every editorial writer as the best there is in economic analysis.
Here are the latest pronouncements of the Economic Gurus on the Greek Bail-out Plan:
May 12 (Bloomberg) — New York University professor Nouriel Roubini said Greece and other “laggards” in the euro area may be forced to abandon the common currency in the next few years to spur their economies.
“The challenge of reducing a budget deficit from 13 percent to 3 percent in Greece looks to me like mission impossible,” Roubini said. “I would not even rule out in the next few years one or more of these laggards of the euro zone might be forced to exit the monetary union.”
“The markets are not convinced because while there is $1 trillion of money on the table, that money is going to be disbursed only if these countries do massive amounts of fiscal consolidation and structural reform,” Roubini said. One or more European economies may default on their debt, he said.
The lending plan is just “another nail in the coffin” for the currency, which is at risk of being “dissolved,” investor Jim Rogers said in a Bloomberg Television interview in Singapore today.
All paper currencies are being “debased,” with the euro currency union at risk of being “dissolved,” Rogers said, adding that he continues to own the dollar, the Swiss franc, the Japanese yen and the euro.
Investors should instead buy precious metals including gold or currencies of countries that have large natural resources, Rogers said. Among other asset classes, he favors agricultural commodities as the best bet for the next decade as well as silver because prices haven’t rallied.
Current economic policies are not sustainable and the world faces doom because “the governments are taking over”, said Marc Faber, editor of The Gloom, Boom & Doom Report.
“They will all bankrupt us and expropriate us, but it may not happen tomorrow. They’ll give us something to play with, until the whole system breaks down – they’ll just print money and print more money.”
The governments’ efforts will by-and-large fail to boost economic activity. But, they can boost, say, asset markets. They can boost stocks.
Stocks have adjusted very meaningfully. This is the second largest bear market in history after the 1929-1932 bear market. And it is possible that we drop to maybe 600 or 500, but equally we could, from the lows, also have very very powerful rebounds. Don’t underestimate the power of printing money
DR. PINNA SAYS:
These men are geniuses who remain unbowed by the media pressure to believe the “political solutions” to real economic problems.
Although printing money is powerful in the short term, it does not replace a hard working intelligent work force.
The West has turned into a mass of Special Interest Unions blended with workers more interested in holidays, high pay, retirement then productivity and honest work. They, in turn, are led by sly shysters interested in fleecing a disorganized public.
What Western Workers and their Political Vultures do not realize, is that all humans are living on the same planet, and those workers and leaders willing to be productive will survive while the rest will sink into the cold mud of a very deep sea.