Thursday, October 25, 2007

Soros Pal: U.S. "Undoubtedly in Recession"

Reuters is back throwing mud at the U.S. Check out this story today:

U.S. "undoubtedly in recession": Jim Rogers
LONDON (Reuters) - The United States has entered a recession, according to highly-regarded investor Jim Rogers, who told Britain's Daily Telegraph newspaper on Wednesday he was switching out of the dollar and into yen, the yuan and the Swiss franc.

The veteran investor, who predicted the 1999 commodities rally, also said he was still bullish about surging Chinese stock markets despite worries over a bubble.
Highly regarded by whom? Reuters? Right. This is a guy who thinks the Chinese economy is a good bet for investments. Later, the article has this:
The US economy is undoubtedly in recession," Rogers told the Telegraph in Hong Kong in an article published on its Website.
Apparently, Mr. Rogers, as well as the Reuters editors, do not understand the definition of the word "recession" or have bothered to check any actual econometric data. So what is the definition of recession?
A period of general economic decline; specifically, a decline in GDP for two or more consecutive quarters.
And how, you may ask, has the U.S. GDP done recently?

News Release: Gross Domestic Product and Corporate Profits
Real gross domestic product -- the output of goods and services produced by labor and property located in the United States -- increased at an annual rate of 3.8 percent in the second quarter of 2007, according to final estimates released by the Bureau of Economic Analysis. In the first quarter, real GDP increased 0.6 percent.
So, instead of the GDP going down for two consecutive quarters, as required to qualify as a "recession," it has gone up.

What the U.S.-hating socialists at Reuters have done is hunt around for someone to say what they wanted to hear, and then they printed it. I'm sure I could go up and down Wall Street and find some "highly regarded investor" who thinks Elvis Presley is still alive too.

That does not make it so.

So, Reuters, you are so full of crap, and your anti-U.S. pro-socialist bias is very apparent.

Rogers, it just so happens, is a former partner of another America-hater, George Soros.
Earlier this year, with the benchmark Shanghai index trading at around 4000, Mr Rogers, a former investment partner of George Soros, added his voice to the chorus of warnings about an incipient bubble forming in the mainland Chinese capital markets.

With the Shanghai Composite Index closing at 5843 points, Mr Rogers said he was relaxed about the market's continued growth.

"I still feel the same way. It's not a bubble yet - if it goes past 9000 in January I'll have to sell. Bubbles always end badly," he said. "I do not want to sell Chinese stocks. I want to own them forever and I want my [four year-old] daughter to own them."

Mr Rogers' comments came as Warren Buffett, the 'Sage of Omaha', urged investors to be cautious about the Shanghai market's surge, which has seen it rise by more than 125pc this year.
Speaking of George Soros, Michelle Malkin notes a company initially funded by the Media Matters sugar daddy was raided by the FBI Wednesday.

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