US Is Nearing Even Worse Financial Crisis: Jim Rogers

[wsansewjs]

The U.S. is approaching a financial crisis worse than 2008, Jim Rogers, chief executive, Rogers Holdings, warned CNBC Wednesday.

"The debts that are in this country are skyrocketing," he said. "In the last three years the government has spent staggering amounts of money and the Federal Reserve is taking on staggering amounts of debt.

"When the problems arise  next time…what are they going to do? They can’t quadruple the debt again. They cannot print that much more money. It’s gonna be worse the next time around."

The well-known investor believes the government won't shut down in August if agreement isn't reached on raising the debt ceiling, but he did say "draconian cuts" are needed in taxes and spending, especially military spending.

"We’ve got troops in 150 countries around the world. They’re not doing us any good, they’re making enemies. They’re costing us a fortune," he said.

Rogers said he is "not long anything in the U.S." and short on American tech stocks. He owns Chinese stocks as well as commodities and would love the world price of silver and gold to come down so he could "pick up the phone and buy more."

He said he owns Chinese stocks, currencies and commodities, adding the Chinese yuan will be a safer currency than the dollar.

"The U.S. is the largest debtor nation in the history of the world," he said. "The debts are going through the roof. Would you keep lending money to somebody who's spending money and not doing anything about it? No you wouldn't."

The pound sterling lost 90% of its value when it was no longer the world's reserve currency, he said, and the dollar will, too. In keeping with his philosophy he said he owns the U.S. dollar and is waiting for a rally. "If it doesn't happen I'll have to sell and take my losses."

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He called Federal Reserve Chairman Ben Bernanke a "disaster" who has "never been right about anything" since he's been in Washington. "I hope he doesn't come back with QE3 but that's all he knows. The only thing he knows is to print money."

He predicted that after the Fed ends its quantitative easing program, known as QE2, this month, it may come back under another name.

"They're gonna bring it back because [Bernanke will] be terrified and Washington will be terrified," he said. "There's an election coming in November 2012. Washington's gonna print more money."
© 2011 CNBC.com

Source:http://www.cnbc.com/id/43328325



This guy KNOWS what he is talking about!

The well-known investor believes the government won't shut down in August if agreement isn't reached on raising the debt ceiling, but he did say "draconian cuts" are needed in taxes and spending, especially military spending.

Military spending is WHAT killing us in this country. No one is talking about it, because its some "sacred" no do-do touchy subject. We need to dramatically reduce our military footprint globally to OUR own boundaries.

-Josh

[hillary supporter]

Rogers is an investor NOT an economist! Note how he said cut taxes before cut spending. Both will automatically raise value of stocks (particularly his as hes losing millions everyday)
Whats good for the market is NOT necessarly good for the country, although Republicans think otherwise.
Josh's proposal for cuts in military spending is on the mark, but conservatives wont do it!
ROGERS HAS WAITED 2 1/2 YRS to speak out until now? Yes, because he gained wealth! Until NOW!
The democrats have the best plan to slowly attack the deficit and grow the economy, but the republicans are not helping on partisan politics.
Bernankes economics are on the mark because it addresses the American economy, NOT the American WEALTHY!

[hillary supporter]

Josh, key in on the "cut taxes" rhectoric...... PRESIDENT Obama did that when he extended the Bush tax cuts towards income over $250, 000. THAT IS/WAS A HUGE TAX CUT!!!!!! Now the republicans are refusing to hold their end by effective spending cuts. They want MORE tax cuts. And refuse to cut defense spending significantly!

[BridgeTroll]

There are plenty of republicans who would be willing to cut defense.  If done properly... Of course there are plenty of other areas that need a good hard look also.

[hillary supporter]

There are plenty of republicans who would be willing to cut defense.  If done properly... Of course there are plenty of other areas that need a good hard look also.

Yes, you are right. Im just getting the picture that further tax cuts are a "non-negotable"item from the republicans.
But i believe a very strong conclusion will be the republicans will retract and , at the last minute, come to an agreement with the democrats (the senate and the administration).
Its not like that hasnt happened before.

[Garden guy]

The republican party has worsened this downturn in the economy by stating within Obamas first weeks in office that they wish for everything he does to fail...does anyone know the numbers of where we would be without the Bush era taxbreaks...where are all of the jobs that these breaks were supposed to creat?....i'm lost on how anyone but the republican party can be to blame for all of this financial bullshit with thier rules ideas and regulations...has everyone forgot this fact...why are we even listening to damn word they say...a wise man does not take advice from a fool...

[hillary supporter]

Wow today the govt released record U S EXPORTS last month. Which the president persued earlier in his term. The market responded with a 75 pt gain despite depressing employment numbers.
Bet Mr Rogers was in the middle of that!

[kathy Jackson]

Jim Rogers is always in the future.
Hes always has to be big man on campus.
I don't care if hes always right about economics.
Hes been saying the same thing for ten years now and its getting old.
If you listen to this man you will just have to suffer like all of the other unbelievably wealthy people in the world.
How dare he tell us the truth!