Rogers: "Bankrupt" U.S. Will Never Pay Back Its Bills

Monday, 08 Aug 2011 09:13 AM

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink

The U.S. government deserves the downgrade Standard and Poor's slapped on its ratings, because the country has run up so many debts it will never get out of the hole, say famed commodities investor Jim Rogers.

Standard and Poor's cut the country's ratings on Aug. 5 to AA+ from AAA on concerns the government is not doing enough to address its debt burdens.

The agency is being too nice, as Washington probably doesn't even deserve the AA+ rating, Rogers tells CNBC.

"It seems to me it's physically, humanly impossible for the U.S. to ever pay off its debt," he says. "They can roll it over and continue to play the charade, but the U.S. is bankrupt."

Investors should go long on gold and commodities, which will perform well while equities and currency markets digest the extent of the fallout the downgrade will have.

"You should nearly always buy into panic just like you should sell hysteria," Rogers says.

"I own gold, I'm worried about gold, it's going so up so much, I'm not going to sell it but it looks like it's setting itself up for a nice correction. I hope so. Then I can buy more."



__________________________________________________________
Editor's Note: Exposed: You Deserve to Know What Obama and Bernanke Are Hiding From Americans
This gripping Newsmax investigative report reveals the truth about America's economic future and the disastrous path that Obama’s and Bernanke’s reckless policies are taking us down. Watch, learn, and receive a free Survival Guide ($49 value) for your personal financial future.
_________________________________________________________

Gold has topped $1,700 an ounce for the first time on news of the downgrade.

Gold prices are up 20 percent in 2011, Bloomberg reports, as investors are buying it as a hedge to protect themselves against market volatility.

"In this current macro environment with high risk and uncertainty surrounding the financial markets, gold has boded very well," says Bayram Dincer, an analyst at LGT Capital Management in Pfaeffikon, Switzerland, according to Bloomberg.

"Gold is pricing in the one-notch downgrade as well as a component of lower global GDP growth."

© 2014 Moneynews. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web

Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 

You May Also Like
Around the Web

Most Commented

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved