Jim Rogers on Gold and Economy

In an interview with India's Economic Times, billionaire commodity and investing expert Jim Rogers talked the economy as it relates to the upcoming elections in 2012, as well as his general view on gold and other commodities.

As for the economy, Rogers sees the election cycle as a disaster, with Obama doing everything he can to create the appearance of improvement, as he has the Federal Reserve print out huge sums of money.

Rogers said, "You have the American government spending staggering amounts of money right now, printing a lot of money and getting ready for the election."

"You have to remember the election in America in November...they do their best to get the economy juiced up so they can win the election."

The problem is the hangover from printing all that money, which inevitable results in a things getting worse rather than better.

Rogers noted that the solution is to allow the economy to cleanse itself via bankruptcies, i.e., allow businesses and financial institutions to fail. From there, the healthier banks and businesses will emerge, making the economy stronger. But the out of control government won't allow that to happen, making the near and distant future of great concern.

Concerning gold, Rogers said, "I own gold and I am not selling gold by any set of imagination." Rogers also said he would prefer the yellow metal would consolidate more in 2012. That way it would position it better for its continual upward price movement.