Saturday, January 7, 2012

Jim Rogers, Ron Paul for President - Beacon Equity Research

Commodities investor, Jim Rogers, likes Congressman Ron Paul as the next president of the United States.


Though the 69-year-old Singapore resident said he doesn’t formally endorse candidates, Rogers told Australian Financial News Network (AFFN) he likes what he hears from Ron Paul, in as much as Paul at least addresses the issues of restoring fiscal and monetary responsibility in Washington.  “Gary Johnson and Ron Paul seem to understand the problems that are facing America, but I’m not in the business of endorsing political candidates,” said Rogers.


However, Rogers does endorse prudent, yet very painful, remedies to debt levels in the U.S., including real budget cuts, including draconian cuts in military spending, a Ron Paul theme throughout his campaign and throughout the more than two decades as a U.S. Representative from Texas.


The Austrian school of economics advocate, Rogers, also insists the Fed should go, another strong message from Paul, who was heavily influenced by Friedrich Hayek’s book, The Road to Serfdom, while Paul was a medical resident in the 1960s.


“The U.S. Government should abolish the Federal Reserve [System] that’s the first thing they should do.  And they are not going to do that, but they should do is let the interest rates find their normal rate their realistic level,” Rogers told The Street in a Dec. 7 interview.  “Right now, masses of people in America the people who have save and invest the people who have done what we would say as the right thing to do are being destroyed . . .”


And Rogers affinity for Ron Paul is not a recent one; he’s been an advocate for Paul since 2008, as evidenced by his interview with Financial Times of London soon after the election of Barrack Obama.


John Authers of FT started the interview with Rogers, “Now you correctly predicted a year ago that Ron Paul was not going to be elected president, partly because you want him to be.”  Smiling, Rogers interjected, “Right.”  Authers continued, “How worried are you now that we do know who the next president is going to be, are you worried about what you see from president-elect Obama so far do you think that could worsen the situation still more?”


Rogers replied, “Are you worried?  Now, I didn’t vote for McCain.  So I don’t think this is some kind of sour grapes or something.  But Mr. Obama has said his two economic planks are: he’s going to tax capital . . . and he’s going to protect American workers.”


Rogers continued, stressing that he was hopeful that cooler heads in Washington would prevail to stop Obama with his plan from protectionist policies and higher taxes, the precise elixir that torpedoed any chance of recovery during the Great Depression.


Fast forward to today’s AFFN interview, Rogers sounded much more resigned to the fate of a terrible crisis worsening in America.  What Rogers feared in 2008 has progressed into horror, as previous interviews with Rogers suggested that he is concerned that a Fed printing record amounts of money only exacerbates the U.S. economy with the addition of inflation, on top of high unemployment and still higher levels of unserviceable debt.


“We’ve lost one decade In the West . . . as you know, stock markets in America are below where they were 10 or 12 years ago, so we’ve already lost one decade in the economy and the markets,” Rogers explained.  “We’re going to lose at least one more decade, if not two or three.  The Japanese have already lost two decades so far.”


When asked about the prospects of a turnaround in the U.S. political system in time to prevent an economic collapse in the U.S., Rogers isn’t betting on it.


“I’m not confident at all, I have absolutely no confidence that anything’s going to be done,” he said.  Rogers predicts a much worse crisis than the 2008 near-total-collapse of the financial system, starting next year, or 2013.


Rogers has never venture to say what Washington’s response to profound civil unrest would be to U.S. economic Armageddon.  Was it a factor in his decision to uproot and move to Singapore?  One of the regular reporters from his typical media outlet rotation should ask Rogers about this very question.


And what possibly could change Jim Rogers’ mind about the U.S.?  Maybe a Ron Paul win in the Republican primaries and a win in Nov. 2012 would be a promising start to regain some confidence that all is not loss.  Sign-up for my 100% FREE Alerts


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