Jim Rogers: Fitch Should Have Downgraded The US 15 Years Ago, And Trichet Should Be Running The Fed

Jim Rogers

Photo: Wikimedia Commons

Investor Jim Rogers had harsh words for U.S. credit outlook and Ben Bernanke when he sat down for an interview with The Economic Times.Rogers said he believed U.S. should have been downgraded years ago, and Fitch was dillydallying, saying “The rating agencies have gotten it wrong for 10-15 years now. America is bankrupt. What are they talking about?”

Rogers was especially critical of the way in which Ben Bernanke is running the Federal Reserve. Addressing ECB president Jean-Claude Trichet’s suggestion of a possible rate hike, he said:

“I hope that he will raise interest rates. I wish Mr. Trichet would be running the American central bank, at least he knows if there is inflation in the world… I wish the Indian central bank was running the American central bank, we’d all be better off.”

Rogers also expects QE3 by another name:

“The problem is we have an election in the U.S. in 2012 and they’re going to come back and start printing money again. They may call it something else but they’ll come back and start printing more money. This is not good for the world, but its all they know to do.”

Rogers said he was long the U.S. dollar because there were too many bears in the market but he isn’t sure how long he would hold on to it.

While he was dismissive of OPEC talks, Rogers did speak on commodities. He expected crude oil prices to stay high and continue their upward trajectory on account of shortage of oil reserves. He said he bought silver and expects to buy more if prices drop further and is watching gold to see if prices drop. On soft commodities he said he was bullish on sugar prices in the coming years, and positive on cotton as well.

Watch the entire interview at The Economic Times >

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