Well respected financial commentator Jim Rogers has slammed the
economic policies of the American and British governments, arguing
that they are "propping up zombie banks", and repeating
his previous
warning that an inflationary holocaust is being unleashed
due to a ceaseless overprinting of currency.
Rogers made the comments during a lively CNBC interview
yesterday.
The legendary investor stated:
"Throughout history whenever you've had gigantic
amounts of paper money created, it's led to inflation down the
road. Sure, things are going down now because of forced liquidation,
I mean AIG went bankrupt, Lehman brothers went bankrupt, and a
lot of people are redeeming and being forced to sell everything.
That's not deflation, that's temporary."
The CNBC anchor then expressed disagreement with
Rogers’ argument, missing the entire point that overprinting
of currency has caused hyper inflation throughout history, and
instead using semantics to argue that AIG didn't go bankrupt and
stating that an overall deflation has caused the current economic
crisis.
As we have continually demonstrated, the driving
factors behind the current financial crisis have been the destruction
of the dollar via an ever increasing move towards a debt based
economy, the creation of money out of thin air and the attachment
of unwarranted astronomical value onto paper and derivatives contracts.
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"Unless the world is coming to an end... in
that kind of scenario you are right, everything is going to suffer."
Rogers told viewers. "I am of the view that the world is
going to recover some day and with all the money that's being
created, history has shown that it has always led to inflation."
he continued.
Rogers, the creator of the Rogers International
Commodities Index (RICI), also slammed the Treasury Secretary
and the Chairman of the Federal Reserve.
"Paulson and Bernanke should resign, it's the
first thing they should do, they should abolish the federal reserve
and stay out of the way, let the market take care of this. Bernanke
claims to be an expert over the depression, the collapse, you
know he doesn't know what he is doing." Rogers commented.
Rogers also pointed out that the Japanese economy
is still suffering because during a sharp decline in the stock
market throughout the 90's it did not allow anyone to fail and
created so called "zombie banks".
"it's 18 years later and they're stock market
is still 75 or 80% below where it was 18 years ago. This policy
has never worked," Rogers urged.
Rogers described the bailout policies of the American
and British governments as "taking the assets from the competent,
giving the assets to the incompetent and saying now you compete
with the competent," pointing out that the approach is completely
antithetical to how soundly functioning markets have operated
throughout history.
Well respected financial commentator Jim Rogers has slammed the
economic policies of the American and British governments, arguing
that they are "propping up zombie banks", and repeating
his 
