Billionaire investor Jim Rogers spoke with FOX Business Network’s (FBN) Connell McShane and Dagen McDowell about his investment strategy given the current economic climate in the United States and European debt crisis. Rogers said “I am not short bonds yet but I plan to be short bonds. I have tried a couple of times and have lost money.” He went on to say that “buying U.S. government bonds at this stage is a terrible mistake; it is one of the few bubbles left in the world.” Excerpts from the interview are below.
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On his investment strategy:
“I am not short bonds yet but I plan to be short bonds. I have tried a couple of times and have lost money. Dr. Bernanke has more money than I do and can manipulate the market, legally. My view is buying U.S. government bonds at this stage is a terrible mistake; it is one of the few bubbles left in the world. If the world economy gets better, you are going to make money in commodities because that’s where the shortages are. If the economy doesn’t get better, they are going to print money. And when they [print money], you better own things to protect you.”
On the damage the Federal Reserve is doing to the United States by printing more money:
“They are pretty staggering amounts of money. Four years ago, the Federal Reserve’s balance sheet had 800 billion dollars of government paper. Now it’s got nearly 3 trillion dollars of junk. You know who is responsible for that? You and me. Its growing. They are printing money. It’s skyrocketed this year alone. They lie and say ‘we are not having a QE3.’”
On the European debt versus United States debt:
“We are worse because we are the largest debtor nation in the history of the world and we have states that are bankrupt. Europe as a whole is not a big debtor; they have bankrupt states. They are in better shape. Their bank is not printing money yet.”
On the European debt crisis:
“We have had bank failures throughout history. They have been horrible, it’s been painful, but it’s not the end of the world; except for the guys who made mistakes. Europe has some serious mistakes. Greece is bankrupt. What they should do is let Greece go bankrupt, reorganize and start over. Will they do that I don’t know. They want the easy way.”
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Watch the latest video atvideo.foxbusiness.com
On his investment strategy:
“I am not short bonds yet but I plan to be short bonds. I have tried a couple of times and have lost money. Dr. Bernanke has more money than I do and can manipulate the market, legally. My view is buying U.S. government bonds at this stage is a terrible mistake; it is one of the few bubbles left in the world. If the world economy gets better, you are going to make money in commodities because that’s where the shortages are. If the economy doesn’t get better, they are going to print money. And when they [print money], you better own things to protect you.”
On the damage the Federal Reserve is doing to the United States by printing more money:
“They are pretty staggering amounts of money. Four years ago, the Federal Reserve’s balance sheet had 800 billion dollars of government paper. Now it’s got nearly 3 trillion dollars of junk. You know who is responsible for that? You and me. Its growing. They are printing money. It’s skyrocketed this year alone. They lie and say ‘we are not having a QE3.’”
On the European debt versus United States debt:
“We are worse because we are the largest debtor nation in the history of the world and we have states that are bankrupt. Europe as a whole is not a big debtor; they have bankrupt states. They are in better shape. Their bank is not printing money yet.”
On the European debt crisis:
“We have had bank failures throughout history. They have been horrible, it’s been painful, but it’s not the end of the world; except for the guys who made mistakes. Europe has some serious mistakes. Greece is bankrupt. What they should do is let Greece go bankrupt, reorganize and start over. Will they do that I don’t know. They want the easy way.”
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