NEW YORK (Commodity Online): Investment veteran and commodities guru Jim Rogers has suggested an impending credit rating downgrade for the UK and other Eurozone countries. He said that it was ‘ludicrous’ to believe that UK will not be downgraded considering that the US itself has lost its top rating.
Rogers maintains that the Standard & Poor’s acted very late to downgrade the US. He is bullish and commodities and long on agriculture and gold as he believes that investors will go after real assets as more and more Quantitative Easing takes place.
“The idea of printing more money and buying up worthless bonds instead of forcing people to go bankrupt is ludicrous. In America, we had states and cities go bankrupt, many times. It didn’t end the United States; it didn’t end the U.S. dollar. It caused some pain, some terrible pain. But that’s how you solve problems. You start over from a stronger base, after you acknowledge your mistakes… That’s what capitalism is all about,” he was reported as saying by economicvoice.com.
But he says that what governments will actually do is to try to camouflage the true position and print more money.
“They’ll try to disguise it. They’ll call it cupcakes or who knows what. It’ll cause a big rally in raw materials and commodities because more and more people will realize they are printing money, they are debasing the currency,” Jim Rogers said.
Jim Rogers was the co-founder of the Quantum Fund together with George Soros and was also the creator of Rogers International Commodities Index (RICI).
