Friday, July 17, 2009
Legendary global investor and chairman of Singapore- based Rogers Holdings, Jim Rogers said on Wednesday the US government’s interventionist economic policy verges on communism.
In an interview with Moneynews’s Dan Mangru, Rogers said: “America now owns the car industry. America owns the mortgage industry. America owns a lot of the insurance industry. Karl Marx must be somewhere standing up in his grave cheering. And why is that? America has become a socialist and maybe even communist nation in many ways,” Rogers said.
Addressing the various stimulus packages introduced by the US government, Rogers suggested that President Bush approved two packages, President Obama one, and now there’s talk of a fourth.
“The first stimulus didn’t work. The second stimulus didn’t work. The third stimulus hasn’t worked,” he said.
(ARTICLE CONTINUES BELOW)
Rogers is clearly unhappy with the massive monetary easing the Fed has engineered under Chairman Ben Bernanke and he sees inflation and a currecy crisis as a result of these policies.
“Printing money has been tried many times throughout history in many countries,” he said. “It has never worked in the long term; it has never worked in the medium-term. Occasionally, it has worked in the short term.”
“Printing money is going to lead to serious problems down the road,” Rogers added.
The amounts involved are staggering, Rogers said. “They’ve already injected huge amounts of money into the system. The Fed has more than tripled its balance sheet in the past year or so.”
The federal government “has increased its own debt by four, five, six times,” he said.
This article was posted: Friday, July 17, 2009 at 4:29 am