Jim Rogers Says US Nearing Downgrade, Worse Recession,
'Because We're Printing and Spending Money We Don't Have'
global investor and chairman of Singapore-based Rogers Holdings,
Jim Rogers, said the US is approaching a financial crisis worse
As the government
has already spent staggering amounts of money, when the problems
arise next time, it cannot print that much more.
an interview with India's ET
Now, Rogers said he expected a downgrade of America's credit
status. "America should already be downgraded. It should have
been downgraded years ago. These people, the rating agencies, have
got it wrong for 10-15 years now. America is bankrupt".
in April, the United States had until 2013 to come up with a credible
plan for addressing its financial problems.
debt is currently 93% of gross domestic product compared with 60%
before the financial crisis and is set to rise further in the next
is the largest debtor nation in the history of the world,"
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,"
investment tips, Rogers said he is "long on commodities and
long on currencies."
sold short EM stocks and I have sold short technology stocks and
I've sold short bonds in the US and I've sold short a large bank
in the US," he noted.
own the dollar right now, the contrarian investor confirmed
in a recent radio interview on Bloomberg Surveillance
with Tom Keene and Ken Prewitt.
that 95% or 96% of people are bearish on the dollar, so I stepped
in and bought, he said.
yuan is likely to be a safe currency, although it is
difficult for investors to buy, Rogers told a conference in Edinburgh
economy is slowing down. We're going to have another recession in
the US in late 2011 or 2012 or 2013 and it's going to be worse than
the last time around, because America has shot all of its bullets,
printing money and spending money we don't have. Be very careful,"
he told ET Now.
the rest of the article
Rogers has taught finance at Columbia University's business school
and is a media commentator worldwide. He is the author of Adventure
Gift to My Children, and A
Bull in China. See his
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