Renowned investor and respected financial commentator Jim Rogers
has slammed the latest economic rescue package, declaring that
it will not work and will most probably make the situation worse
than it already is.
Rogers, the creator of the Rogers International
Commodities Index (RICI), told CNBC
that the latest so called "stimulus" is more of the
same debt based policy that has led the world to the brink of
total financial meltdown.
Rogers also pointed out that the offered solution
is coming from the very same people who allowed the financial
crisis to arise in the first instance.
"It is mind-boggling to me," Rogers
told "Squawk Box Europe."
"If I were on your show 15 weeks in a row
and was wrong, you'd probably never invite me back. These guys
have been wrong year after year after year consistently and
here they are making the same mistakes again. This is not going
to solve the problem, it's going to make it worse."
Rogers also spoke of the artificial rally of
the US Dollar and warned that hyperinflation is certain to follow.
"We've had a period of forced liquidation
of everything, even the US Dollar is going up," Rogers
said. "It's been much stronger than expected because there
is this massive forced liquidation, there are huge short positions
in the Dollar, everybody is having to cover."
"But we've never had in world history a period
when every single central bank and every government in the world
is printing money as fast as they can." Rogers said.
"So I know we're going to have serious inflation
down the road, when it happens I don't know, so I periodically
buy gold."
Rogers also predicted that the head long plunge
into more debt and inflationary monetary policy would lead to
a bubble
in US government bonds.
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Rogers also warned that the fallout of financial
collapse may lead to a period of protectionism and more social
unrest.
"This is very dangerous, that's what caused
the great depression in the 1930s. If it happens again, then
you'd better sell all the stocks, you'd better sell a lot of
everything and bunker down," he said.
"We already have a lot of social unrest developing. If
protectionism comes back, you'd better be really, really careful,"
Rogers added.
Renowned investor and respected financial commentator Jim Rogers
has slammed the latest economic rescue package, declaring that
it will not work and will most probably make the situation worse
than it already is.
