Jim Rogers is a well respected and widely followed investor who, since earlier this year, has been predicting a 'financial armageddon' for 2013 through 2015 regardless of who won last night's election for the White House. Now with President Obama firmly in place over the next four years, Rogers is suggesting America will experience fewer jobs as the federal government continues to print and borrow money to live beyond its means.
In an interview overnight with The Economic Times Rogers said, "They will probably come up with some kind of quick fix, but then whatever fix they do in the end, it is likely be the wrong thing. These guys have been doing the wrong thing for the 50 years in America. America 50 years ago or even 40 years ago was the richest and most powerful country in the world. Now America is the largest debtor nation in the history of the world. And the same guys who made this mess, do you think they are going to fix it? No, they are not going to fix all the problems. They are going to make the problem worse." When asked what he is doing with his money, Rogers replied, "I am going to buy more commodities, I am going to be short on United States government bonds, but I am long on the US dollar at the moment. I do not know if I am going to stay long on the US dollar, but I am long on the US dollar."
The United States is headed for what has been referred to as the 'fiscal cliff', whereas on December 31, 2012 a series of economic policies expire which could put America in serious disposition and if not resolved by the current Congress and signed by President Obama, then we could be worse off than Rogers is suggesting. If nothing is done it will trigger the expiration of the Bush-era tax cuts, across-the-board spending cuts to most discretionary programs will occur, we will revert back to the 2000 year levels for the dreaded Alternative Minimum Tax, workers will go back to paying an additional 2% payroll tax on Social Security, ObamaCare taxes come into effect while federal unemployment benefits expire.The net effect is likely to be a reversal of the current trend for unemployment in America to more Americans losing their jobs with the unemployment rate above 9% which could be devastating for the country.