TGC NEWS BULLETIN 14 OCT ‘08

“We Are Facing an 'Inflation Holocaust”: Jim Rogers

Full Story: http://www.cnbc.com/id/27097823/

The current rescue plans, which will force governments to issue more debt, print money and flood the markets with liquidity, will flare up inflation after the crisis is over and will create worse problems, Rogers warned.

Markets do not trust the governments' plans to keep struggling banks alive and investors will only calm down when the companies with bad assets are allowed to go bankrupt, legendary investor Jim Rogers, CEO of Rogers Holdings, told CNBC on Friday. "The way to solve this problem is to let people go bankrupt," Rogers said.

"What they (G7 leaders) need to do is go down the bar and leave the rest of us alone," Rogers said on Friday.

Unfortunately we now know that they did NOT do that, and instead nations are guaranteeing bank deposits and nationalising banks.

Jim Rogers warned that:
"We're setting the stage for when we come out of this of a massive inflation holocaust"
And the plans are unlikely to fend off a severe economic downturn, as the crisis starts affecting all walks of life.

"Many people bought 4-5 houses with no money down and no job… you think we'll just say well, that's too bad, we'll start over and nobody loses their job? Be realistic."

Could it be time to stock up on GOLD?