Dramatic Cut In Spending Only Way Out Of Looming Recession, But US Won't Do It - Investor

The only way out of the looming recession for the United States is to cut spending massively, but it is not what Washington is ready to do, renowned US investor Jim Rogers told Sputnik

WASHINGTON (UrduPoint News / Sputnik - 18th May, 2023) The only way out of the looming recession for the United States is to cut spending massively, but it is not what Washington is ready to do, renowned US investor Jim Rogers told Sputnik.

"What's the way out? It'd be very easy. If Washington said 'Okay, we'll stop spending and we'll pay our debts,'" Rogers said. "Now, do you think Washington is going to stop spending? They love spending money. It's not their money. The way out is just cut spending dramatically, cut taxes dramatically and stop spending. Are they going to do it? No, of course not."

Rogers also addressed the issue of US money printing, stressing that history has shown many times that when a nation prints a lot of money, it has inflation and the value of its currency drops.

"And sometimes the currency becomes worthless," he said. "Countries spend a lot of money, the currency of the debt builds up, the currency becomes less and less valuable, becoming worthless, and so they give you new money.

They tell you it's worth more, but it's still a problem. It's a country in decline. These are simple lessons from history. You can ruin your currency if you want and many countries have debased their currency repeatedly."

Usually, the country doesn't turn around and recover, continuing as a "second class or third class nation" because its money is not as valuable, the investor said.

Earlier in May, Federal Reserve Chairman Jerome Powell said that the US may fall into what he hopes is a mild recession.

Policymakers at the Federal Reserve have projected that the US will experience a "mild recession" later this year that could take two years to overcome, minutes of the central bank's policy meeting from March showed.