Jim Rogers, chairman of Rogers Holdings, thinks another recession will hit around 2012 but central banks will not be able to throw cash at it anymore.
"We do have inflation in the world … most central banks should resign," Rogers told CNBC.
There has always been a recession every four to six years in the United States "since the beginning of time," and that would mean another one is due around 2012, according to Rogers, a hedge fund pioneer who started the Quantum Fund with George Soros in 1970.
"When the next one comes the world is going to be in worse shape because the world has shot all its bullets," he said.
"Is Mr. (Federal Reserve Chairman Ben) Bernanke going to print more money than he already has? No, the world would run out of trees," Rogers added.
Meanwhile, the world isn’t headed for a double-dip recession, said Richard Branson, founder of the United Kingdom's Virgin Group, because the global economy is "getting back on its feet."
"Obviously there is the worry of the vast amount of debt out there. But, I think we're all just going to have to work a little bit harder and we'll avoid a double-dip recession," he told CNBC Tuesday.
The British entrepreneur is in Australia to launch the first phase of Virgin Money, the group's financial services subsidiary, which will become the country’s fifth bank.
U.S. Treasury Secretary Timothy Geithner has dismissed fears of a double-dip recession, but warned of a slow US recovery with the economy only gradually gaining strength.
Geithner was asked on NBC's "Meet the Press" whether he thought the economy would dip back into recession before things got better. "No, I don't," he answered.
"I think the most likely thing is, you see an economy that gradually strengthens — over the next year or two. You see job growth start to come back again," Geithner said.
Bernanke warned U.S. lawmakers on July 21 that the outlook for the U.S. economy was "unusually uncertain," saying the central bank could step in if the recovery fails.
Bernanke said the world's largest economy would see "moderate growth, a gradual decline in the unemployment rate and subdued inflation over the next several years."
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