Billionaire investor Jim Rogers, chairman of Rogers Holdings, says he doesn’t understand how monetizing even more debt can solve a problem caused by too much debt. According to Rogers, Fed Chairman Ben Bernanke has failed in spuring economic growth as a result of the massive increase in the money supply brought about by the Federal Reserve’s loose monetary policy. Rogers suggests the U.S. must stop printing money and take on austerity measures like the Europeans did to let the economy recover.
“I’d rather have the Europeans running the U.S. central bank than the people running the U.S. central bank, least they know how to try to build for the future,” Rogers told CNBC Monday.
“In America, Bernanke just says we’ll print more money, we’ll spend more money, even though the United States is now the largest debtor nation in the history of the world.”
Rogers pointed out that economies in trouble should be allowed to fail, like bad companies.
“The things that have worked in the past…..will be you go bankrupt then you re-organize and you start over. You have a painful period for awhile, and then you start over. This has been done in the past 3 or 4 thousand years, and that’s the way you do it,” said Rogers.
I never heard of a country successfully declaring bankruptcy, re-organizing and starting over. Oh, and by the way why would the US do this it is not insolvent. And if you haven’t looked the EU has worse problems then the US.
My guess this guy wants bond prices to increase and doesn’t really give a crap about anything else.
Also US does not “print money” when it loosens the monetary policy. What a tard.
@EST:
You’re exactly wrong.
Jim Rogers is right. in the old days when we printed extra moneay we had gold to cover the extra money. nowadays we have “debts” to cover the extra money. stop printing money is the only solution. we had our 7 good years. Now is is time to deal with the 7 bad years as good as we can.
i live in europe (i am dutch) and i can say that EU problems are huge. But not as huget as the USA
I completely agree with Rogers. Let the economy work itself out. Weed out the garbage, let the banks that don’t belong here anymore fail, and rebuild the economy. It’s every man for themselves now and we need to all work that much harder to pull ourselves out of the slump we’re in. We also need to stop expecting the government to bail us out every time we screw up. Whatever happened to working hard to earn an income?