Gold, a great investment over next decade: Jim Rogers

According to Jim Rogers, Chairman of Rogers Holdings, US' spend-money-to revive-economy theory has failed. In an exclusive interview with CNBC, Rogers lambasted Federal  Reserve for printing gigantic amounts of money which only contributed to bad debts.

Further, discussing various asset classes, he said, he was bullish on commodities and real assets. Gold, according to him, would certainly go to couple of thousand dollars an ounce over the next decade, maybe by 2019. "I am sure gold will be a great investment over the next decade," he said, adding that he would surely buy the metal when the prices drop. However, he feels other commodities like silver are better.

Here is a verbatim transcript of an exclusive interview with Jim Rogers on CNBC-TV18. Also watch the accompanying video.

Q: Why do you think that we are going to have a short-term rally in the dollar? What’s behind this thinking?

A: Everybody is pessimistic, I am pessimistic too and that’s why there might be a rally.

Q: Long-term you used to worry about deficit, you are still worried about the debt that this country has?

A: Gigantic spending in Washington, incompetence in Washington where they don’t know what’s going on, they are making our situation worse. I see nothing to turn the dollar around.

Q: What you mean incompetence in Washington? Where is the most incompetence? What would you like to see done differently?

A: The Federal Reserve has tripled its balance sheet full of garbage, which you and I are going to have to pay for. They have gone out and printed gigantic amounts of money, why do we want the Fed they are making the situation disastrous for all of us.

Q: I guess you don't think that Bernanke should be reconfirmed?

A: Hopefully. Of course not.
   
Q: What about Tim Geithner? Treasury as well has been putting out this entire stimulus and now the troubled asset relief program (TARP) programme?

A: Mr Geithner is a smart person from what I understand but he has been wrong about everything for the last 15 years. Why are we listening to him? Why are we listening to any of those guys? They are making our situation worse. They said in writing yesterday that the solution is to spend more money, that’s what got us into the problem, too much debt too much consumption and now we are going to solve it with more debt and more consumption? That’s like telling Tiger Woods, you got another girlfriend then you solve your problem.