Jim Rogers: Governments Will Loot Pensions, Savings – Hold onto your Gold

Caption Contest 1When asked how governments will react to the next global economic decline, legendary investor Jim Rogers warned that Western governments will loot pensions and savings:

For one, there will be more confiscation of wealth. Americans and Europeans have already made it legal to take money from private bank accounts, or at least parts of them, in order to bail out banks. They will likely help themselves to pension plans too.
Gold and silver should provide investors some protection against government confiscation.  They will probably go for bank accounts and retirement funds, because they need cash. In fact, that is already happening in Argentina and Poland. Gold and silver are no longer part of the monetary system, which they were back in the 1930s’ when they last confiscated gold and silver. From the government’s point of view, gold and silver are not ideal – it is money they need.”


 

 

Submitted by Henry Bonner, Sprott’s Thoughts

Jim Rogers co-founded the Quantum Group of Funds in 1973. He has warned investors that governments could loot savings and pension plans soon. With gold coming down again over the last month, I asked him about his gold holdings now.

Why still own gold?

“You see, there is going to be chaos out there over the next decade,” he began. “It could be a monetary disaster or even war. This turmoil could come from a gigantic debt problem, for instance, which could cause world economies to fall apart as well. Politicians don’t know what to do besides printing money – so that’s what they end up doing. We will see a wave of turmoil from all this that will surely take gold higher.

“I am on the record extensively since the fall of 2011, saying that gold would be going down for quite some time. Well, correcting, I should say. That is still happening; I am not rushing in to buy gold. I also have not sold any of my gold. A 50 percent correction from the top would put gold under 1,000 dollars. I am not predicting that will happen, but it is possible.”

Could certain countries really go to war over the next 5 years?

“Well, wars start with absurd actions by absurd politicians – they always have. I wouldn’t expect there to be a war over the Ukraine, for instance, or over a few rocks in Asia. But wars always seem completely unthinkable until they happen.

“When you look at how wars start, it’s always one group of politicians doing something foolish, followed by another group doing something even more foolish. Before you know it, they go beyond the point of no return. Take the First World War, for instance. Nobody could have conceived that such carnage and destruction would happen. Within six months, people were looking at each other and asking ‘How the hell did this happen?’ It was insane and absurd. And yet, it went on for four more years, costing millions of lives. This can happen.”

Mr. Rogers adds that conflicts become more likely when people are becoming poorer. Wars often occur during economic depressions, when there is mass poverty and unemployment. And we are headed right for such a period:

“In the next two or three years, when we start to have more economic problems and more inflation, it will become more likely that a war will break out. Wars typically start when people are unhappy about the economic situation and suffering from high inflation or food shortages. We are getting closer to the day where the price of wheat and the price of sugar go much higher, causing discontent among populations around the globe.”

How will governments react to a global economic decline? How will they keep themselves afloat?

“For one, there will be more confiscation of wealth,” says Mr. Rogers. “Americans and Europeans have already made it legal to take money from private bank accounts, or at least parts of them, in order to bail out banks. They will likely help themselves to pension plans too.

“Gold and silver should provide investors some protection against government confiscation,” he says. “They will probably go for bank accounts and retirement funds, because they need cash. In fact, that is already happening in Argentina and Poland. Gold and silver are no longer part of the monetary system, which they were back in the 1930s’ when they last confiscated gold and silver. From the government’s point of view, gold and silver are not ideal – it is money they need.”

Is the broad stock market in a bubble? Can it keep going any higher?

“I don’t know if the stock market is at a peak,” says Mr. Rogers, “but stocks are certainly at an all-time high. I am not inclined to buy things that are making all-time highs. I would rather buy things that are depressed. For instance, I am more interested in stocks in Russia, China, and Japan – because these markets are depressed. I am not at all keen on buying the U.S. stock market now.”

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Comments

  1. I call bullshit.  Rogers and Faber and Sinclair keep saying this.  Over and over.   Aint gonna happen in the U.S.  Just aint.   Perhaps in other places, but not here.  The worst that will happen is a small % of 401k’s and IRAs and pensions will be required to invest in US treasuries.

  2. https://www.youtube.com/watch?v=XSj4tpu0kYU
    Peter Schiff – Market Crash 2014 | London Real

  3. Looks like the folks behind the curtain are hoping to get an 18 print for the end of the week.
     
    How’s that for a imminent price rise.
     
    *craps in pants*

    • @Canadian Dirtlump – Yep, it certainly looks like we are headed for a close below $19 today. Gold is holding up much better but silver is taking it on the chin once again. Is this the start of a ‘summer swoon’ for silver? 

    • NO, we will not close below $19 today.  If they did that – by Monday the stores of Physical would be cleaned out.

  4. ‘I am not rushing in to buy gold’ – why if the $ ‘price’ is low, surely stacking it like f*ck should be the done thing!
     
    Enough from these paper clowns and their priced in $’s mindset!

    • Excellent point, 1000 thumbs up on your comment.
       
      Lest we all forget that there really is no “price” on physical monetary metals!  I even make this mistake every now and then and need to be reminded that Gold and Silver ARE money. Ever wonder why the word “money” is NOT on our currency??? This philosophy is of the utmost importance to gain wisdom as to what “wealth” is over mere savings.
       
      Thanks for the heads up!

    • I keep telling people that something priced in fiat that has lost 97++% of its value since 1913 means zero. You can’t call paper money when real money is gold and silver, or backed 100% by gold and silver.

  5. Netranger808   this video is a little long   what was the gist of it?
    As for pension and savings looting, it began years ago when the official policy of ZIRP was implemented.  Savers are getting zero return on their investments. This ZIRP policy started the softening up process by throwing the fear factor into savers and retirees that their returns were minimal unless they invested in higher risk markets. All markets are high risk so that part of the plan has been wildly successful.
     The stock market and bond investments are now traps for those seeking yields. This nudging and herding of dumb money invested with institutional investment firms just makes their monies easy to find and steal. Like Steve DeAngelo noted in his post today, there’s $32,000 invested in these modes for every $30-40 in precious metals. That’s about 100 to 1 ratio, something speculated on regularly on these pages.
     The effectiveness of the herding has left the unaware directly in harm’s way of a rapacious government gone wild, stealing anything they can get their hands on.  For a rogue government, 100% is not enough. We will see this come true once the guise of generosity falls away.
     Most astute investors are not in the markets—too dangerous. Insider sellers to buyer ratio is 50 to 1. 
    The retail markets consist largely of muppets and HFT traders.
     Pension plans are chasing risky investments to garner hundreds of billions in  returns for the managers and fund owners, not for the retail investors or pension holders. The cream is skimmed.  That’s the reason the markets are going up.QE provides funds to juice the illusory returns.
    Massive commissions and bonuses are the order of the day for the criminal houses of this Landsraad.
     Retail clients and pension plan holders are being prelubed for a major doinking; set up for serious losses when the markets go south.   
    The strip mining of wealth in this country and others is proceeding at full speed.  To date, pensions have been looted in 10-12 countries.   The formalization of the most serious looting will take place once ZIRP has done its damage. Laws are now in place, waiting for execution. We prudent people with pensions will be regarded as thieves, the ‘haves’ in a world of ‘have nots’ The punishment for theft is having one’s hand cut off. In the more civilized countries, it’ll be our pensions that suffer the same punishment.
    I thought our pensions would be stolen in a more formalized manner through the GRAs. The only pension plans subject to thievery  took place with the TSPs taken last year during sequester.  Converting our IRAs to physical took place 2-3 years ago, well ahead of the game. I thought that was prudent then but saw that we got out a little early. It was FAR in advance of the pension theft event horizon but we sleep well at night knowing that the paper ponzi scheme markets are not going to hit us directly.
      Yes, the paper FIAT valuation of the holdings is lower but the amount of physical assets remains the same.

    Those who leave their funds in easy reach of TPTB or governments will feel the sting of the looting, either piecemeal or en bloc, just like those holders did in Poland, Hungary, Argentina, Venezuela, Spain, Russia, Portugal and Ireland, to name a few countries
    These mechanisms are now in place in nearly every member of the G20.  Every major GDP country has bail in provisions. All have legal means to take back the pension generosity of the governments directly funded pension or by tax deferral systems like the IRA and 401k.

    The imputed generosity of a government via pension plans fails to note that this same generosity lasts only so long as the government is solvent. Government solvency always has, in its core, the latent acid of insolvency brewing upwards. The illusion of solvency disappears once paper currency comes into being, precious metal real money is demeaned, destroyed or deflated by manipulation. That is if it’s not confiscated by the government.
    Government and solvency should never be used in the same sentence.
    When insolvency meets illiquidity, the government then throws off their veil of generosity they’ve shown to the tax slaves.
     The period of solvency only so long as the government can convince the sheeple that it means well as it loots those same sheeple with inflation, taxes and the heavy boot of its soft tyranny.  Once those fail to extract the needed FIAT to run the government and fund wars, the serious looting starts as the real face of the government is disclosed.
     It can happen in 24 hours. The printing presses are running at full speed but the defaults are calamitous as the FIAT supply chain falls to pieces under the weight of the deceit and lies that can no longer cover up this dual smashing effect of insolvency and illiqidity.
    Once this happens, the game of deceit is over.
    Unless you are well protected, you’ll get screwed. The time for screwing is coming much closer IMO.

    Think of the face as a morph of Medusa and the Gorgon.  It ain’t pretty my homies. Avert your eyes lest ye be turned to stone.

    A large mirror with a shiny silver surface is known to reflect the baleful gaze of the monster.
    A pillbox bunker of silver bricks, stacked high, stops incoming rounds.  
    Cheers

    • Look at all the disabled and retired surviving on social security. Look at what food and fuel inflation is doing to them. Everyone I know is getting very pissed off with a rotten 1% increase when real inflation on the things they use most is pushing 15%+ and most I know are vets and are armed. It does not bode well for the current government when a bunch of people who have nothing to lose decide it is time for a change. They want their kids, grand kids, great grand kids(I have grand nieces and nephews now yikes) to have a better life than being a wage slave to the system.

  6. Just be prepared for the day when the government will be looking for your Gold and Silver.   You know the feds were after everyone’s gold in 1933.   Do you really think they would do any less today?   My suggestion is to stack all you can, hide it well, and TELL NO ONE.  Only one person in your life should know where your gold and silver are stashed – the executor of your estate.   As they’re most likely the one to inherit your stuff, they have as much to lose should government find out about it.   To all others:  tell them you sold it all for money to live on.

    • Government cannot at this point go after it, that would crash the fiat mirage for good and they will not let that happen. They need to be able to create money from nothing to fund their endless wars, gold and silver are a finite resource.

  7. Mary B  
    We don’t have kids but we understand the generational obligations that are being created by debt and FIAT.
     The real generational obligations are to make for a better world for the next generations.
    What we have now is completely upside down and must be destroyed utterly, completely and torn out root and branch.
     If blood flows and destruction comes to those who created this system, so be it.  
    War is what I see.  
    War is what we must fight.
    Bring it.
    I see us paying it forward to secure a better future.
    I’m beginning to compute how much in the way of battle supplies can be purchased with our stack.

  8. “Well, wars start with absurd actions by absurd politicians – they always have. I wouldn’t expect there to be a war over the Ukraine, for instance, or over a few rocks in Asia. But wars always seem completely unthinkable until they happen.”
     
    In many cases, the reasons given for a war are complete BS.  Take WW-I for example.  Supposedly, this was started by the assassination of an Austrian Arch Duke and his wife that few liked anyway.  No, this was an excuse for the grabbing of money, power, land, and to settle generations old scores.  That’s all.  Most wars are started for excuses that just don’t wash when looked at closely.
     

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