Jim Rogers: Obama Should Resign Before Inflation Sparks Unrest
By Julie Crawshaw
Investment guru Jim Rogers says President Barack Obama should resign — and warns that inflation will only continue to soar, putting the United States at risk of the same civil unrest that has struck Greece.
Rogers says that what Obama “should do is take an ax — no, not an ax — take a chain saw to spending in the U.S.”
Rogers tells Bloomberg Business Week that “we have got to balance the budget. We have got to pay off the debt, somehow, someday.”
Nonetheless, Rogers — considered by many to be “the ultimate dollar bear” — is simultaneously long the U.S. dollar.
Why? “Because everybody’s bearish, including me. I read something like 97 percent of people are bearish on the dollar,” the Rogers Holdings chairman said.
“I am one of those 97, so I bought dollars.”
Meanwhile, Rogers has dim hopes for a quick resolution to the European debt crisis.
“Why should a good, honest German taxpayer, a guy who saved his money, suddenly get a bill from the German government saying you have got to pay for some Greeks sitting on the beach drinking Ouzo?” asks Rogers. “That’s absurd.”
German voters have already voiced their displeasure with that scenario by staging protests. In Greece, there have been more than three weeks of demonstrations over austerity measures needed to avoid a national debt default. Many such protests erupted into violence last week.
Rogers expects there will similar protests in the United States.
“We are going to have social unrest in the U.S., too,” Rogers says. “We are going to have much higher prices. We are having serious inflation, which is going to get worse, and we have a government that is sitting down there spending staggering amounts of money, getting us deeper into debt.”