America is Bankrupt, and Will Never Get Out of the Financial Hole It’s in

 
Rogers: “Bankrupt” U.S. Will Never Pay Back Its Bills
Monday, 8 August 2011
By Forrest Jones
Money News

The U.S. government deserves the downgrade Standard and Poor’s slapped on its ratings, because the country has run up so many debts it will never get out of the hole, say famed commodities investor Jim Rogers.

Standard and Poor’s cut the country's ratings on Aug. 5 to AA+ from AAA on concerns the government is not doing enough to address its debt burdens.

The agency is being too nice, as Washington probably doesn’t even deserve the AA+ rating, Rogers tells CNBC.

“It seems to me it’s physically, humanly impossible for the U.S. to ever pay off its debt,” he says. “They can roll it over and continue to play the charade, but the U.S. is bankrupt.”

Investors should go long on gold and commodities, which will perform well while equities and currency markets digest the extent of the fallout the downgrade will have.

“You should nearly always buy into panic just like you should sell hysteria,” Rogers says.

“I own gold, I’m worried about gold, it’s going so up so much, I’m not going to sell it but it looks like it’s setting itself up for a nice correction. I hope so. Then I can buy more.”