Jim Rogers: Financial ‘Armageddon’ Will Happen Despite EU Debt Deal

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Jim Rogers: EU Debt Deal Only Making Problems Worse, Financial ‘Armageddon’ Will Happen Despite EU Deal

(CNBC; June 29, 2012) Even as markets cheered the agreement by European leaders to allow the direct use of the bloc’s bailout funds to recapitalize struggling banks, well-known investor Jim Rogers told CNBC the move does nothing to help solve the region’s biggest problem, which is its high debt levels.

“Just because now you have a way to get them (the banks) to borrow even more money, this is not solving the problem, this is making the problem worse,” Rogers said on Friday.

“People need to stop spending money they don’t have. The solution to too much debt is not more debt. All this little agreement does is give them (banks) a chance to have even more debt for a while longer,” he added.

After negotiating late into the night, European policymakers agreed on Friday morning that the bloc's bailout fund, the European Stability Mechanism (ESM), would be able to lend directly to recapitalize banks without increasing a country's budget deficit, and without preferential seniority status.

Summit leaders also agreed that euro area rescue funds could also be used to stabilize bond markets without forcing countries that comply with EU budget rules to adopt extra austerity measures or economic reforms.

“What would make me very excited is if a few people went bankrupt or a few people started paying off their debt. We are going to have financial Armageddon anyways, when the rest of the world is not going to give these people any more money.”

“What are you going to do in two, three, four years when the market suddenly says ‘no more money’ and the Germans don’t have more money and the American debt has gone through the roof.”

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Peter Schiff: The Supreme Court Is Wrong, ObamaCare Is Unconstitutional!

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The Supreme Court Is Wrong: ObamaCare Is UNCONSTITUTIONAL The Schiff Report - 6/28/2012 Two wrongs do not make a right. The fine for not buying health insurance is not a tax, its a penalty. And even if it is a tax, its unconstitutional anyway, as its a direct tax that must be apportioned. The Supreme Court is wrong twice.

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USA Consumer Confidence Drops to 5-Month Low

The Conference Board: Consumer Confidence Index


Consumer Confidence Index by Month The Consumer Confidence Index (CCI) reached a Post-Great Recession peak of 72.0 in February 2011. The Great Recession cyclical low was 25.3 in February 2009. The Pre-Great Recession peak was 111.9 in July 2007.



Says Lynn Franco, Director of The Conference Board Consumer Research Center, "Consumer Confidence declined in June, the fourth consecutive moderate decline. Consumers were somewhat more positive about current conditions, but slightly more pessimistic about the short-term outlook. Income expectations, which had improved last month, declined in June. If this trend continues, spending may be restrained in the short-term. The improvement in the Present Situation Index, coupled with a moderate softening in consumer expectations, suggests there will be little change in the pace of economic activity in the near-term."

Consumer Confidence Index by Year For each year, the related months are averaged. The Great Recession low was in 2009 at a 45.2 average and the Post-Great Recession peak has been 2011 at a 58.2 average, which is a 4-year high. For the 6 months ended June 2012, consumer confidence is at a 5-year high of 66.3.

Jim Rogers: 2013 & 2014 Will Be Worse

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Where Jim Rogers Is Putting His Money If you think 2012 is scary, listen to what Jim Rogers has to say about next year, gold and China. "We had a lost decade in America we are going to have another lost decade. Next year it is going to be bad for the American economy. Be very careful. I am short stocks. I own (am long) currencies and commodities".

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USA Consumer Sentiment Drops to 6-Month Low

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USA Consumer Sentiment: Thomson Reuters / University of Michigan

American optimism has waned as the Index of Consumer Sentiment dropped to a 6-month low in June 2012. The June reading of 74.1 (-5.2) is below the 75.8 monthly average from January 2005 through May 2012. Consumer sentiment has decisively rebounded from the depths of the Great Recession (55.3 in November 2008).

Some of the good is technology is changing life for the better, American entrepreneurship bubbles up through the government disincentives, the economy is muddling along with at least some growth, the late spring weather is nice, consumer sentiment has increased 9 of the 10 past months to a 55-month high, and maybe nothing really bad will happen for at least awhile.

Some of the bad is technology is changing our life for the worse, just 1 in 4 households anticipate an improved financial situation during the year ahead, 1 in 7 citizens are on food stamps, 50% of 2012 college graduates are unemployed or underemployed, full employment is far from being restored, the government encroachment in and control of our lives continues unabated, and the national debt rises ever higher.

Surely the EU sovereign debt crisis and the mess those silly Europeans created is not a preview of things to come here in the Land of the Free? Good Lord, us Americans are not that goofy to run up a bunch of debt we can't pay and be forced into fiscal austerity hell, are we?

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Peter Schiff: Is America the Next Greece?

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Peter Schiff: America the Next Greece? Peter Schiff, CEO and chief global strategist at Euro Pacific Capital, explains why Washington's Keynesian approach to stimulating the economy has led to more overspending and excessive debt levels, during a Fraser Institute policy briefing on June 5 in Vancouver.

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USA Sovereign Debt Now Exceeds GDP: Greetings From Big Brother

Greetings American Citizen:

It has come to my attention that the USA public debt is now greater than the annual GDP. That is, the debt ratio has exceeded 100%. Egan-Jones warned about this in their recent downgrade of United States sovereign debt to AA. This is disturbing plus foolhardy for me to continue giving you a free ride. Your share of the United States public debt is $49,843 and it would help a bunch if you could chip in another $1,349 for your share of this year's interest expense. When can I expect payment?

Where's Uncle Sam? You ignored his collection letters over the years. He retired in frustration. I'm his totalitarian sibling who's running things now. Sam says I have control freak issues. If this spending and borrowing habit doesn't stop, I'll have to do a reset after hyperinflation and economic collapse. Then I will have total power!

You can't pay your share of the debt and interest? You really should, but I tell you what, for now, let's kick the can down the road. In memory of Uncle Sam and the Good Old Days. No one wants to face a Day of Reckoning, even when they know it is inevitable. I'll give you a short-term extension, but it's just for a little while. This living on debt must stop otherwise the crony capitalists and foreigners will buy up all the assets at Depression level prices someday!



Your children and grandchildren can surely figure out a way to pay me for all of these wars & military budgets, Homeland Security, TSA, NSA, & police state infrastructure, federal employee & military pensions & benefits, corporate welfare & subsidies, individual tax breaks & credits, social benefits & care, and all the other free stuff and handouts every last one of you Americans want. You keep telling everyone how smart your kids and grand kids are. They better be! I hope you aren't fibbing, or delusional, like when you say you live in the Land of the Free.

You haven't been noticing, maybe actually ignoring or denying, what's going on? Oh, you were busy posting their cute pics and videos on Facebook while watching TV, movies, and other mass media. FYI, the Republic was lost while you've been self-absorbed and apparently ridiculously gullible. Oops!



Poor Ben Bernanke, he's working so hard to help you, printing money just as fast as he can to keep America afloat. Then he has to worry about those darn interest rates and keep them crammed down in a zero-rate environment. Otherwise, the interest expense on the USA's ever-increasing debt would skyrocket. Not only that, some of the Too Big To Fail banks might actually become insolvent from interest rate shock and counter party panic. The entire frigging financial system might meltdown! On top of all these worries, his bosses keep pestering him about more and more for them - the Wall Street Banksters!

Most likely your progeny will have to pay for all this apathy and greed of yours in unspeakable ways. But, by God, grandpa and grandma got to live the good life! Who said you couldn't be bought? Your price was easy for you, you cheated and haven't paid. You are so selfish plus been bought and sold by the political system.  I won't tell anyone, I understand. It's been tough these past few years and it's still hard out here for an American, right? No worry about your current situation, the price I will extract is the future prosperity and freedom of your children and grandchildren. In the meantime, continue enjoying life as best you can!

Please refer to Greece, Spain, former Soviet republics & satellites, Latin America, et. al, for a preview of the early stages of upcoming American despair. It's difficult to tell you the latter stages when I am in complete command. Of course, the bi-partisan political and corporate corruption will get worse and worse. Freedom, liberties, and rights will vanish as the government and major media, the corporate advertising delivery system,  fuel fear about terrorism, always scaring you with an enemy to justify perpetual war and domestic crackdowns. That's when your descendants will curse you for being a selfish coward and bum as their Bill of Rights is destroyed by tyranny. It gets really, really bad in the New Amerika. Say hello to and tell those precious kiddies of yours to cowboy and cowgirl up! It's going to be a rough ride!

 /s/ Big Brother




Charts consist of the latest data available from the Bureau of Economic Analysis (GDP at 3-31-12), U.S. Treasury (Public Debt at 4-27-12), and U.S. Census Bureau (Population at 4-30-12):
Public Debt $15.62 trillion GDP $15.46 trillion
Population 313.46 million
Annualized Interest Expense $422.71 billion
Effective Interest Rate 2.78%

$SPY $DIA $QQQ $IWM

USA Consumer Confidence Drops: Appraisal of Current Conditions Deteriorates

The Conference Board: Consumer Confidence Index

The May 2012 Consumer Confidence Index dropped -3.8 to 64.9 (preliminary) and a 4-month low, after reaching a 12-month high in February (71.6). Americans are pessimistic. The May reading is below the 74.6 monthly average from January 2005 through May 2012. However, this reading is well above the dismal October 2011 reading of 40.9, which was a 30-month low, the lowest since April 2009. Compared to the Pre-Great Recession peak of 111.9 in July 2007 consumer confidence continues at historically low levels regardless of the monthly ups and downs.

Says Lynn Franco, Director of The Conference Board Consumer Research Center, "Consumer Confidence fell in May, following a slight decline in April. Consumers were less positive about current business and labor market conditions, and they were more pessimistic about the short-term outlook. However, consumers were more upbeat about their income prospects, which should help sustain spending. Taken together, the retreat in the Present Situation Index and softening in consumer expectations suggest that the pace of economic growth in the months ahead may moderate."

This is after the Thomson Reuters / University of Michigan Index of Consumer Sentiment was reported at a 55-month high in May, the highest since October 2007. Obviously there are two conflicting storylines between consumer "confidence" and "sentiment". I have not been able to reconcile these reports: one positive and one negative. Americans are comparatively giddy according to the other report: USA Consumer Sentiment Rises to 55-Month High! This results in the two indexes being a Bulls Survey vs. Bears Survey.

Consumer Confidence Index by Month The Consumer Confidence Index (CCI) reached a Post-Great Recession peak of 72.0 in February 2011. The Great Recession cyclical low was 25.3 in February 2009. The Pre-Great Recession peak was 111.9 in July 2007.



Consumer Confidence Index by Year For each year, the related months are averaged. The Great Recession low was in 2009 at a 45.2 average and the Post-Great Recession peak has been 2011 at a 58.2 average, which is a 4-year high. For the 5 months ended May 2012, consumer confidence is at a 5-year high of 67.2.

USA Consumer Sentiment Rises to 55-Month High!

USA Consumer Sentiment: Thomson Reuters / University of Michigan

Americans are rather optimistic these days as the Index of Consumer Sentiment rose to a 55-month high in May 2012. The May reading of 79.3 (+2.9) is above the 75.9 monthly average from January 2005 through May 2012. Consumer sentiment has decisively rebounded from the depths of the Great Recession (55.3 in November 2008). In fact, Americans are the most optimistic since October 2007 (80.9).

Some of the good is technology is changing life for the better, American entrepreneurship bubbles up through the government disincentives, the economy is muddling along with at least some growth, the spring weather is nice, consumer sentiment has increased 9 consecutive months to a 55-month high, and maybe nothing really bad will happen for at least awhile.

Some of the bad is technology is changing our life for the worse, just 1 in 4 households anticipate an improved financial situation during the year ahead, 1 in 7 citizens are on food stamps, 50% of 2012 college graduates are unemployed or underemployed, full employment is far from being restored, the government encroachment in and control of our lives continues unabated, and the national debt rises ever higher.

Surely the EU sovereign debt crisis and the mess those silly Europeans created is not a preview of things to come here in the Land of the Free? Good Lord, us Americans are not that goofy to run up a bunch of debt we can't pay and be forced into fiscal austerity hell, are we?

USA Consumer Sentiment at 4-Year High, But Only 29% Report Improved Finances

USA Consumer Sentiment: Thomson Reuters / University of Michigan

Americans are becoming downright giddy, compared to sentiment lows in recent years. From a longer-term perspective, we are neither very optimistic nor very negative these days, but the Index of Consumer Sentiment reached a 4-year high in May. Consumer sentiment has decisively rebounded from the depths of the Great Recession. High gasoline and food prices stifle and remind consumers everyday their disposable income is slipping away, but at least we all have the latest Android or iPhone! We can text and surf away unto oblivion. 29% of households report their finances had improved, the same as a year ago, described as "dismal" by Reuters.

Some of the good is technology is changing life for the better, American spirit and entrepreneurship perpetually rises up through the government disincentives, the economy is muddling along with at least some jobs growth, the spring weather is nice, consumer sentiment has increased 9 consecutive months to a 4-year high, and maybe nothing really bad will happen for at least awhile.

Some of the bad is technology is changing our life for the worse, just 1 in 4 households anticipate an improved financial situation during the year ahead, 1 in 7 citizens are on food stamps, 50% of 2012 college graduates are unemployed or underemployed, full employment is far from being restored, the government encroachment in and control of our lives continues unabated, the national debt rises ever higher towards a debt bomb, a possible "fiscal cliff" could occur later this year, and the Wall Street Banksters continue runninig amok.

Surely the EU sovereign debt crisis and the mess those silly Europeans created is not a preview of things to come here in the Land of the Free? Japan won't be the next to succumb to overwhelming debt, will they? Good Lord, us Americans are not that goofy to run up a huge debt we can't pay and be forced into fiscal austerity hell, are we?

Jim Rogers: Spanish Bailout Insane

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Jim Rogers on Spanish Bailout: "The Most Insane Thing I've Ever Heard" Jim Rogers, chairman of Rogers Holdings, explains why the euphoria over a Spanish bailout has been short-lived. "The solution to debt is not more debt," he tells CNBC's Scott Wapner.

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Peter Schiff Testifies Before Corrupt & Criminal Congress, Government, & Lobbyists

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Congress, Government, Lobbyists

Watch as a bribed, corrupt Congress, anti-American special interests with their hands out for free money, and government worker parasites scam the American taxpayer! Peter Schiff swims against the tide and the mafia operation in Washington and tries to explain to the Beltway Bandits another government program is not needed. This is because the USA is already broke and headed towards insolvency and bankruptcy.

Mr. Schiff Returns to Washington Does Washington have the American taxpayers' interests as their top priority? Watch as lobbyists drown out your voice and Peter fights the tide.

The Hearing

Oversight of Federal Housing Administration's Multifamily Insurance Programs

The Panel

Ms. Marie Head, Deputy Assistant Secretary, Office of Multifamily Housing Programs, Office of Housing, Federal Housing Administration

Mr. Michael Bodaken, President, National Housing Trust

Ms. Sheila Crowley, President and Chief Executive Officer, National Low Income Housing Coalition

Ms. Mary Kenney, Executive Director, Illinois Housing Development Authority, on behalf of the National Council of State Housing Agencies

Mr. Rodrigo López, President and Chief Executive Officer, AmeriSphere, on behalf of the Mortgage Bankers Association

Mr. Richard L. Mostyn, Vice Chairman and Chief Operating Officer, The Bozzuto Group, on behalf of the National Multi Housing Council

Mr. Robert F. Nielsen, Immediate Past Chairman, National Association of Home Builders

Mr. Joseph L. Pagliari, Jr., Clinical Professor of Real Estate, The University of Chicago Booth School of Business

Mr. Peter Schiff, Chief Executive Officer and Chief Global Strategist, Euro Pacific Capital

SPREAD THE WORD! Let more people take an inside look at the inner workings of Washington D.C.

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Marc Faber: Europe In Recession Right Now

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Siegel, Faber on Europe & China "The ECB should ensure all the deposits of the major banks in the euro zone," says Jeremy Siegel, of the Wharton School at The University of Pennsylvania. Meanwhile Marc Faber, "The Gloom, Boom & Doom Report," shares a bearish view on China. Harry Wilson, former Silver Point Capital partner, weighs in.

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Jim Rogers on Markets, Economy, and China

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Not only is there social unrest in China, but expect to see more and greater social unrest and riots in Europe and the USA.

Jim Rogers on Markets, Economy and China (April 25, 2012) Famed investor Jim Rogers, co-founder of the Quantum fund with George Soros and chairman of Rogers Holdings and Beeland Interests, joins The News Hub to discuss his outlook for the financial markets, China and the U.S. economy.

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Art Cashin on Global Markets Gloom and Doom

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Art Cashin on the Dismal Jobs Numbers Art Cashin, UBS director of floor trading, discusses the gloom and doom descending on global markets after this morning's weak employment report, and the flight to safety in gold.

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Peter Schiff: A Look Behind the Dismal Economic Data

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My favorite bear, Peter Schiff, has a field day on the latest economic data. See my commentary: USA Sovereign Debt Exceeds GDP: The American Dream Gone Wild.

Reality Bites - A Look Behind the Dismal Economic Data The Schiff Report (6/1/2012) Order my new book The Real Crash at www.tinyurl.com/RealCrash

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