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What Jim Rogers Believes Obama's Second Term will do for the US Economy

By Joao Peixe | Wed, 07 November 2012 23:19 | 0

In the wake of the presidential elections The Economic Times spoke to Jim Rogers about how he thinks the markets will respond to the news that Barack Obama will sit in the Whitehouse for another four years.

Now that the elections are over investors the next big topic that is on the lips of managers and investors alike is the pending ‘fiscal cliff’ that the US is quickly headed towards. This is the point that is rapidly approaching in December where a series of economic policies, such as the Bush-era tax cuts, will expire across the board, potentially halting any progress made by the economy on its path to recovery. Rogers’ lack of faith in Obama is apparent as he states that the President’s method for tackling this problem “is going to be the same. More money printing, more deficit spending and more problems for all of us. You should be worried, and I am worried. The US is going to have economic slowdown in 2013-2014. So now you are going to see more unemployment or fewer jobs, more turmoil in the currency markets and more turmoil in oil markets. Be worried.”

Related Article: Why US Energy and Economic Prospects Improve if Obama Loses

He suggests that Obama’s administration is likely to try and implement a quick fix, rather than create a long term solution to the problem. Yet he warns that “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. America is now the largest debtor nation in the history of the world and it gets higher and higher everyday.”

In order to protect himself from the dire future that he envisages for the US economy, Rogers has stated that he will invest in commodities, such as crude oil. “The commodity index is such that crude's price will stay higher than most people expect and also it will go very high.”

By. Joao Peixe of Oilprice.com

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