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"The things that have worked in the past... will be you go bankrupt then you re-organize and you start over. You have a painful period for awhile, and then you start over. This has been done in the past 3 or 4 thousand years, and that's the way you do it."</blockquote>
The United States needs to stop printing money and take on austerity measures like the Europeans did, in order for the economy to recover, said international investor Jim Rogers, chairman of Rogers Holdings.
"I'd rather have the Europeans running the U.S. central bank than the people running the U.S. central bank. At least they know how to try to build for the future," Rogers told CNBC Monday.
“In America, Bernanke just says we'll print more money, we'll spend more money, even though the United States is now the largest debtor nation in the history of the world."
Rogers reiterated that economies in trouble should be allowed to go under, like bad companies.
"The things that have worked in the past... will be you go bankrupt then you re-organize and you start over. You have a painful period for awhile, and then you start over. This has been done in the past 3 or 4 thousand years, and that's the way you do it," said Rogers.
"Trying to push the problem out to the future, and printing money, we just had another example here in the U.S., it didn't work and it's not going to work."
Rogers said that with central banks "flooding the world with money," the only place to invest right now is in real assets, whether it's in "silver, or rice or natural gas."
"Paper money is not going to do it for you," he added.
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US Must Stop Printing Money, Copy Europe: Rogers, 31 Aug 2010</blockquote>