Legendary global investor and chairman of Singapore-based Rogers Holdings, Jim Rogers said economies in trouble should be allowed to go under, like bad companies.
Speaking to CNBC earlier this week, Rogers said: In America, Bernanke just says we’ll print more money, we’ll spend more money, even though the United States is now the largest debtor nation in the history of the world."
"The things that have worked in the past… will be you go bankrupt then you re-organize and you start over. You have a painful period for awhile, and then you start over. This has been done in the past 3-4 thousand years, and that’s the way you do it," said Rogers.
"Trying to push the problem out to the future, and printing money, we just had another example here in the US, it didn’t work and it’s not going to work."
Rogers said that with central banks "flooding the world with money," the only place for investors right now is in real assets, to protect themselves from central banks debasing currencies.
"Paper money is not going to do it for you," he added.
Rogers said central banks are destroying the saving and investing class. We’re going to have a lot more currency turmoil over the next 2-3 years because of the huge imbalances that exist in the world.
"I would prefer the euro, perhaps with the yen second," he said, adding that "there are many technical reasons that I’m optimistic about the yen."
Mr. Bernanke has never been right about anything, said Rogers, adding that the Fed chairman "doesn’t understand economics, finance, or currencies and is merely pushing the problem to the future by printing more money," Rogers told CNBC.
He reiterated his view that there’s no bubble in gold right now, although he doesn’t rule that out in the future.
Jim Rogers has taught finance at Columbia University’s business school and is a media commentator worldwide. He is the author of Adventure Capitalist, Investment Biker, Hot Commodities, A Gift to My Children, and A Bull in China. See his website.