Jim Rogers - What Recovery? America's Problems "Getting Worse, Not Better,"

Yahoo Finance Tech Ticker - December 10th, 2009

"It's getting worse, not better."

That's how Jim Rogers responds to the recent talk of improvement from President Obama, Treasury Secretary Geithner and Fed Chairman Bernanke, among others.

"Papering over the problem is not going to solve America's problem," Rogers says. "The idea you can solve a problem of too much debt and too much consumption with more consumption and more debt defies belief. I cannot believe that grownups would stand there and say that."

History shows the only way to solve a financial crisis is "when people go bankrupt, you let them go bankrupt," Rogers say. "Then, competent people come in, take over the assets, reorganize and you start over."

But rather than "take the pain and reorganize and start over," as Sweden, South Korea and others have done, Rogers says America is "doing the Japanese model."

Keeping zombie banks alive and bailing out their creditors will only prolong the pain, the famed financier predicts. "What has been happening is the government has been printing and spending a lot of money," he says. "The problem is not solved - they're making the problem worse."

Adding insult to injury, Rogers fears the "unintended consequences" of new regulations that inevitably come from politicians seeking someone to blame for the crisis.

"The problems in last two years came from industries that are heavily regulated: banking, insurance, mortgage," he notes. "Now what? You're going to make the regulations tougher? It's not the regulations, it's the regulators."

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[buzzadler]

All of you out there who think the Government (obama, bernanke, etc) are "ignorant" and "foolish" - need to WAKE UP a bit and "re-think your thinking" like Robert Prechter said recently on King World News. The fact is, the government has an Agenda, and the system is working out quite well for them. Federal Pay is at an all time high, The gap between Rich and Poor is at 80 Year highs, and according to EU Prez, Mr. Rompuy 'We are all celebrating our first year of GLOBAL GOVERNMENT." Enjoy.

[Orchard6773]

Jim is right on. Obama and Friends are purposefully tapping us out (spending) to get Americans on their knees.

Then they can raise taxes much more easily and get their wealth redistribution and reparations programs through with lower resistance.

Hoax and Change!

[mgentles3]

@mikei4455 MOST people never have. What the founders called an 'irate minority' brings about change. And if everyone who listens to economists would listen to Ron Paul, who is so well versed in economics he was saying these things ten years ago, they'd find the answers to our problems. Not in one man, but with leadership that wouldn't work AGAINST us, but scale down, get out of the way, and let America thrive on the energy of the people in a free market economy.

[eastariel]

@mikei4455

LET FREEDOM RING!

1. Question everything

2. Think for yourself

3. Vote for truth-tellers, not for PR masters

4. Choose love, not hate

5. Stand up for others, including yourself

6. Turn off the TV

7. Read

[mikei4455]

@eastariel Unfortunately, most people don't care anymore :/

[eastariel]

America is plagued with problems. We're nearly bankrupt, we're at war, Monsanto seems more dangerous than all the terrorists combined, jobs are scarce, the economy is weak, and many of us feel like we're losing our own country.

But we're FREE! And because we're free, we can fix these mountainous problems. These mountains seem so big when we act as individuals, but when we're one nation united, they shrink down to golf ball size.

All it takes is all of us doing everything we can to save America.

[MrIzzyDizzy]

government is not printing money - the borrow it from the fed at interest -and the fed -well they print it out of thin air and loan and also charge interest -of course someone is going tobe unable to pay because the principal is 100% of the money supply

[edarotag84]

please let the fed act of 1913 end in 2012, those guys have done nothing but rape us normal folks, and made the banksters super rich!

[bellcord]

@ChrisPCrunchy Don't look now but a sabretooth tiger just ate Grandma..ah hell, she hadn't earned anything in years anyway..

[ScottieMeyer]

19 They shall cast their silver in the streets, and their gold shall be removed: their silver and their gold shall not be able to deliver them in the day of the wrath of the Lord: they shall not satisfy their souls, neither fill their bowels: because it is the stumblingblock of their iniquity.

Ezekiel 7:19