Veteran investor says Obama’s agenda will only exacerbate the problem
Paul Joseph Watson
Friday, December 19, 2008
Veteran investor Jim Rogers warns that the policies of central banks and politicians are turning what would have been a recession into a new great depression, and that Barack Obama’s taxation agenda will only make the problem much worse.
Speaking to Bloomberg News, Rogers said that the crisis would at least be the worst since the second world war and that “it could well be” as bad as the great depression.
“1929 was the stock market bubble which popped, we were going into a recession and then the politicians around the world starting making horrendous mistakes which turned it into a depression, it would have been just a normal recession otherwise but the American politicians and the European politicians – everyone got in on the act and that seems to be happening this time too,” said Rogers.
Rogers labeled it “unfathomable” what central banks were doing and totally at odds with the lessons of history, adding that President elect Barack Obama’s intention to impose protectionism and taxation of capital would fuel a depression.
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“If that happens, it’s all over,” warned Rogers, adding that the same thing will happen to the U.S. as happened to Britain between 1918 and 1939, which went from being the richest and most powerful country in the world to being a shambles. China would replace America as the great superpower in the 21st century, said Rogers.
Rogers explained that the only safe haven during such a period would be commodities and precious metals like gold, which always perform well during times of extreme upheaval. Rogers said he had bought a significant amount of gold at the start of its bull run in 2002 and that he hadn’t sold any of it.
The veteran investor stated that shortages would translate into a strong comeback for oil, which slipped down to $36 dollars a barrel yesterday from a peak of over $145 dollars a barrel in July.
Watch the clip below.