During an interview on the FOX Business Network’s Morning’s with Maria, Rogers Holdings Chairman Jim Rogers shared his perception on the Fed and markets ahead of the policy meeting this week.
“She [Yellen] doesn’t know what she’s doing. She shouldn’t be there. She is an academic who has no clue--None of them do… They should abolish the Federal Reserve and resign,” he said.
Rogers argued that near-zero percent interest rates are manipulating the markets.
“Low interest rates are destroying the people that save and invest. Pension plans, trust companies, insurance companies -- we’re destroying all the people that save their money for a rainy day and now they are being ruined… to bail out people who get it wrong -- who ran up huge debts who didn’t have the money. We are ruining the country with this idea,” he said.
Rogers discussed his current investment strategy and his outlook for commodities.
“There’s one company that I’m the director of that has been one of the best stocks in the world...It’s called PhosAgro… But mainly I’m watching -- I’m doing nothing… I’m not a buyer of gold… I haven’t bought gold in a long time. I still like farmers [agriculture]… I’m not buying iron ore under [any] circumstances but gold, silver under a thousand -- I’d buy gold; oil is making its bottom,” he said.
He also explained why we have to worry about China’s debt problem.
“We haven’t had an economic slowdown for over 6 years in the world--we’re overdue... and the next time it comes it’s going to be a disaster because the debt is so much higher everywhere. Eventually the market is going to raise interest rates and that’s when the disasters work… when the central banks have no more control. In 2008, the Chinese had a lot of money saved up so they can spend a lot of money to help save us. They’ve got debt too themselves now, the debt that’s gone up there is horrendous, that’s going to be a big problem next time.”