Rogers believes that bond yields will spike and that there will be a bullish commodities market. Rogers believes that governments are dissembling about the inflation problem and that the recent Treasury bond rally is a bubble.
"As the inflation numbers get worse and as governments print more money and as governments have to issue many, many more bonds - somewhere along the line we get to the point when (bond prices) go down," Rogers explains. Rogers criticises Ben Bernanke, the president of the US Federal Reserve. "Bernanke is obviously backing the market again and the Federal Reserve has more money than most of us - so they can drive interest rates down again. As I say, they are making the bubble worse."
