Saturday, December 10, 2011

US does not deserve AAA status: Jim Rogers

With the US debt situation spiralling out of control, veteran investment guru Jim Rogers believes that the US does not deserve its AAA status.
In an Investment Week interview, when asked about what he thought of Fitch downgrading the US economic outlook, Rogers retorts “Where have they been for the past six years? The US is the largest indebted nation in the history of the world. It has nowhere near AAA status.”
In an earlier interview with Fox Business, Rogers had maintained his grim outlook on the US economy. “The U.S. is in fact in worse shape than Europe. Europe is getting the press these days because the debts are coming due but America is the largest debtor nation in the history of the world. The next time we have an economic slowdown it will be terrible. And it will be sooner than we all had hoped. I would expect it to be around 2012 or 2013”
So what does Rogers advise investors to hold? Gold. Obviously.
The US is currently in $15 trillion debt, with a slowing economy and rising unemployment.