Jim Rogers: We need to let businesses fail, stop Fed intervention

Investor Jim Rogers was on Bloomberg this past week to discuss the economy, global recession, and the actions being taken by the Federal Reserve.

His opinion has been, and continues to be, the world bankers and Federal Reserve are creating more harm than good.  Rather than letting poor performing companies go out of business, they are propping them up to create a small amount of incremental prosperity.  This leads to short term benefit, but significant problems in the future:

Rogers discusses how he views commodities as a good longer term investment (especially agriculture).  He is also still buying gold, and purchasing currencies such as the Swiss franc, Japanese yen, and Chinese yuan.  The reason for his bullish outlook on agriculture is the shortage of world food supplies, and the reality that many of the world's farmers are "old men".  He believes there needs to be a great influx of people into the agriculture industry to meet global food demand in the coming decades.

Rogers also mentioned the best thing Ben Bernanke can do to help with the current economic crisis is "abolish the Federal Reserve and resign".  His opinion is the current policy approach is just going to lead to significant inflation, thereby causing the savings of Americans to lose value.  "Massive inflation is coming, and the only way to protect yourself is to be out of paper assets and into real assets," said Rogers.