A crisis is coming and it is is going to be a nightmare

"Futures Magazine:  What else could the Fed have done?

Jim Rogers:  [They could have done] exactly what the Scandinavians did. In the early 1920s the Federal Reserve raised interest rates. Washington balanced the budget. We had a horrible year or two but then we had the greatest economic decade in American history in the1920s. It ended badly because of excesses. You bite the bullet, you take the pain. The way the system is supposed to work is people get into trouble, they make mistakes, somebody comes along, reorganizes, and they start over from a stronger base. What the West has done is we have gone in and taken the assets away from the competent people, given them to the incompetent people and said to the incompetent people, “now you compete with the competent people with their money.” It is absurd economics, it is absurd morality. It’s insane. Central bankers will tell you it is great. They say don’t worry we are going to withdraw from this slowly and gradually. In 2008 when they were contemplating this, [FOMC] minutes showed that they didn’t know what they were doing but they didn’t know any other choice. …You asked how it is going to end, it is going to end badly..."

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