Fears over a possible war involving Syria and the U.S. have roiled U.S. stocks and pushed gold and oil prices higher.
“I own oil, I own gold,” Rogers said during a Reuters interview Wednesday. “I own things like that and if there is going to be a war, and it sounds like America is desperate to have a war, they're going to go much, much higher.”
“Stocks are going to go down, some of the markets that I'm sure are already going down, commodities are going go up. I mean, yeah, some of the things I own all make a lot of money. It's, I'm not particularly keen on war, I assure you, but it sounds like they want it,” he added.
Reuters’ Tara Joseph asked Rogers about the possibility of a disruption in the supply of oil.
Could this be the thing that sends oil prices soaring?
“[T]he problem with war,” he answered, “is…no matter how well the plans are made, strange things happen in war and who knows what unintended consequences will come.”
“But I do know that throughout history whenever you had war, things like food prices have gone up a lot, energy prices have gone up a lot, copper price, lead prices: you know, all of these things go up a lot whenever there's been a war in the past,” he added.
But there’s something else to watch out for, Rogers explained. Central banks have for years been flooding the markets with printed money -- and now many of these same banks are considering easing off their easy money policies.
Rogers predicts this, and possible war between the U.S and Syria, will cause a major market panic.
“[W]hen this artificial sea of liquidity ends we're going to see panic in a lot of markets, including in the U.S., including in West developed markets,” he said.
Here’s the key quote:
This is the first time in recorded history that all major central banks have been flooding the market with artificial money printing at the same time. They've all been trying to debase their currencies at the same time.
“This has never happened in recorded history,” he concluded. “When this ends its going be a huge mess.”
You can watch the Reuters interview here:
In short, according to Rogers, things may get really bumpy, really soon.
(H/T: Zero Hedge). Featured image
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