Jim Rogers: More Pain for the Greenback, and the Failure of the Federal Reserve

Jim Rogers: More Pain for the Greenback, and the Failure of the Federal Reserve:The Market Oracle:
Jim Rogers: "...no country in history has ever emerged from a serious financial crisis by “debasing its currency."
no country in history has ever emerged from a serious financial crisis by “debasing its currency.”

The strategies that the central bank is currently employing are nothing short of “outrageous,” Rogers said.

“You know, I've read the Federal Reserve Act,” he said. “Nowhere does it say [the central bank is] supposed to bail out investment banks! Nowhere does it say you should bail out Wall Street. Their mandate was to have a sound currency, and then it was later expanded to have employment – to help employment. But nowhere does it say: ‘Bail out investment banks.'”

Q: Are we looking at a Japanese-style lost economic decade?

Rogers : The Federal Reserve is making the same mistakes that the Japanese made. They're trying to say: “We won't let anybody fail. We'll print a lot of money. We'll drive interest rates to zero. And we don't want anybody to fail. We'll put on as many Band-Aids as we have to.”

Well, putting Band-Aids on a cancer patient is not a good solution.

So whether it's like the '90s in Japan , or the '70s in America , remains to be seen.

So there will be big changes, of course. If you're in the field that deals with – and works out – bankruptcies, you've got a great future – on Wall Street, or in the legal profession. If you're in commodities, you have a great future. Some sectors of the financial community are going to do well. Many others are going to disappear and/or do badly.