In this CNBC Jim Rogers segment, he says that you should own the Euro, nor should you think about selling it for fundamental reasons. The European central bank has done a much better job than the American central bank. If the Europeans were running the American central bank, the world would be in much better shape.
It has never helped in the long term to debase your currency. There may be some effects in the short term, but in the long run in is always a disaster. Europe has many small economies. America is similar because it is comprised of many small states. Some can compete better than others. That is how capitalism work.
The CNBC Jim Rogers segment ends with a plea that you’ve got to face reality. Just because you love the Irish, you cannot just bail them out over and over. Why should the people of Ireland be forced to live a life of austerity just because their central bank keeps making the same mistakes?
