HIDDEN VALUE

Dear Value Seeker,

U.S interest rates are now near zero.

Just like doomed Japan during the country’s “lost decade” in the 1990s.

Yesterday, the Fed cut interest rates to a record low range of 0 to 0.25 percent.

America’s central bank says the weak economy will “warrant exceptionally low levels of the federal funds rate for some time.”

[Translation: After sinking the US economy in a sea of credit, the Fed wants to ‘fix’ the problem with even more of the stuff.]

And it left the door open for more “extraordinary” measures to fight the economic enemy du jour: deflation.

Or in Fed speak… “The Federal Reserve will continue to consider ways of using its balance sheet to further support credit markets and economic activity.”

At this point, there are no real limitations on what “Helicopter Ben” might do in his crusade to fix the wounded economy.

He

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VANCOUVER, B.C. - The U.S. financial crisis has cut so deep - and the government has taken on so much debt in misguided attempts to bail out such companies as Fannie Mae and Freddie Mac - that even larger financial shocks are still to come, global investing guru Jim Rogers said in an exclusive interview with Money Morning. Indeed, the U.S. financial debacle is now so ingrained - and a so-called "Super Crash" so likely - that most Americans alive today won’t be around by the time the last of this credit-market mess is finally cleared away - if it ever is, Rogers said. The end of this crisis "is a long way away," Rogers said. "In fact, it may not be in our lifetimes." During a 40-minute interview during a wealth-management conference in this West Coast Canadian city last month, Rogers also said:...

1,000,000,000,000,000. That’s right, a quadrillion is a thousand trillion. These are the numbers Zimbabweans have to deal with when going about fairly modest everyday transactions. The sad truth is that hyperinflation is just one of the many items the country’s despotic ruler, Robert Mugabe, can list on his bio.

The check below, drawn on the MBCA bank in Zimbabwe, has just crossed my path. It is for Z$1.072 quadrillion which, as far as I can establish, equates to about US$27, but that is a rapidly moving target. The check is dated July 23, just prior to the Zim dollar having had 10 zeros cut off on August 1. But don’t hold your breath for an end to the erosion of the currency value, at least not while crazy Bob is calling

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Alex’s Notes: Dont know about you, but I consider Jim Rogers to be a very smart man. You dont become a Billionaire in commodities by being stupid. He has some very interesting things to say about the Federal Reserve Chairman Ben Bernanke in a recent interview.

In my opinion, this guy gets inflation and the big picture better than just about anyone.

8.19.2008 Latest Jim Rogers Interview,

During a 40-minute interview during a wealth-management conference in this West Coast Canadian city last month, Rogers said that:

• U.S. Federal Reserve Chairman Ben S. Bernanke should “resign” for the bailout deals he’s handed out as he’s tried to battle this credit crisis. • That the U.S. national debt – the roughly $5 trillion held by the public– essentially doubled in the course of a single weekend because of the Fed-led credit crisis bailout deals. • That U.S. consumers and investors can expect much-higher interest rates

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The First of Two Parts.] Keith Fitz-Gerald Investment Director Money Morning/The Money Map Report VANCOUVER, B.C. – The U.S. financial crisis has cut so deep – and the government has taken on so much debt in misguided attempts to bail out such companies as Fannie Mae (FNM) and Freddie Mac (FRE) – that even larger financial shocks are still to come, global investing guru Jim Rogers said in an exclusive interview with Money Morning. Indeed, the U.S. financial debacle is now so ingrained – and a so-called “Super Crash” so likely – that most Americans alive today won’t be around by the time the last of this credit-market mess is finally cleared away – if it ever is, Rogers said. The end of this crisis “is a long way away,” Rogers said. “In fact, it may not be in our lifetimes.” During a ...