Jim Rogers: Sound money is not a safeguard against politician’s monetary abuses

Posted: April 7, 2012 in Burse, De la Forbes
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Not even sound money, and therefore neither gold standard, can protect the monetary system against the politician’s abuses, says Jim Rogers, at Bucharest. But gold and silver remain, in his opinion, the best long-term investments.

For Jim Rogers, a suddenly melt down of the financial system might be an event that can bring the system on the road to the gold standard.

Read more about his precious metals portfolio

Unfortunately, in his opinion, not even a “gold standard” model could safeguard the financial system, and the people, against manipulation of politicians, who always will find ways to abuse the monetary system thru their monopoly of creating money.  This was the answer gave it by Jim Rogers for Forbes Romania, who asked for some comments on the idea of restoring the link between money and gold.

When people can use anything they want it, sound money became the predominant thing, but what happened in about all of our history, politicians then create a monopoly on the money. So, whatever the money is, they find ways to abuse it, they find ways to trick the people, and in the end they haves to pay for. That’s happened with gold. I don’t know, as i said, if we going to go back to the gold standard in case of a major sudden collapse, but in the end, politicians will find ways to abuse it as well. But don’t sell you’re gold” Mr Rogers said during the conference “EEC and China: Bridges for investment and business opportunities”, organized by CFA Romania, at Bucharest, on 4 April.

“But, do not sell your gold,” he added. He said that he has no confidence in the potential growth of precious metals for the next period. But this is only a short time outlook, because on a long run, both of the yellow metal and silver are very interesting: “I expect the price to decline and when that happens I will buy more”.

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