Here are the two founders of the Quantum Fund in today’s Reuters, my excerpts and emphasis, with diametrically opposed opinions which both sound equally convincing.
WASHINGTON (Reuters) – The stimulus plan the U.S. government is currently considering is necessary to help American citizens, but it will likely not reverse the country’s economic decline, hedge fund manager and billionaire philanthropist George Soros said on Monday …
“The economies of the world are falling off a cliff. This is a situation that is comparable to the 1930s. And once you recognize it, you have to recognize the size of the problem is much bigger,” he said.
Soros said the United States needed “radical and unorthodox policy measures” to prevent a repeat of the Great Depression of the early 20th century that include recapitalizing banks and writing down the country’s accumulated debt.
—>Also, he said, it should create more money to offset the collapse of credit and then rapidly pull that cash out of the system when inflation emerges. The government would have to be very nimble in the timing of such moves, he said … <—
HONG KONG (Reuters)—The global financial crisis has only strengthened renowned international investor Jim Rogers’ acerbic criticisms about the U.S. economy and his resoundingly optimistic view on China’s future. Mr. Rogers, co-founder along George Soros of the Quantum Fund, railed at the Federal Reserve and incoming U.S. Treasury Secretary Timothy Geithner, while also saying the high saving rate and solid fundamentals in China make it a powerful force to be reckoned with. …
He accused U.S. authorities of consciously trying to devalue the U.S. dollar by flooding the market with liquidity—or in his words, “turning on the printing presses”—and said anyone chasing the rally in government bonds is making a “terrible mistake.”
—>“The idea that you can fix a period of excess borrowing and excess consumption by more borrowing and more consumption to me is just ludicrous,” he said.<—- …
Originally published at Wilmott.com and reproduced here with the author’s permission.