Onion Eater

At 3 minutes, 10 seconds into the video:

Interviewer: I take issue with one statement you are making because the Fed's move isn't really adding any cash into the market, it's adding Treasuries, which has a very different effect. But I will ask you this: What would be the first two things you would do if you were in Mr. Bernanke's seat tomorrow morning?

Rogers: I would abolish the Fed and I would resign. Step one is abolish the Fed and step two is resign.

Three cheers for Jim Rogers! I want to abolish the Fed too.

However, Mr. Rogers did not directly address the point that "the Fed's move isn't really adding any cash into the market."

This is the principle point of my paper, Is the collapse of the dollar inevitable? http://www.debatepolitics.com/econom...nevitable.html (Is the collapse of the dollar inevitable?)

The Fed's polluting their portfolio by buying crap does not cause inflation any more than buying T-Bills does; any purchase made with cash created out of thin air causes inflation. What buying crap does is make withdrawing cash from the economy more difficult in the event that inflation should ever threaten to become hyperinflation.

Causing inflation and setting up a situation in which hyperinflation is difficult to check are not the same thing. This is a rather fine point, but one which many economists (including, I suspect, Jim Rogers) overlook.