“Both President Barack Obama and his GOP challenger Mitt Romney are clueless and dangerous, as both candidates will adhere to the same policies of sidestepping paying down debts and letting the economy correct, heal and get going again, said prominent investors Marc Faber and Jim Rogers.
Under President Obama’s first term, the government has rolled out fiscal stimulus measures and overhauled healthcare and financial oversight regulations.
The Federal Reserve over the last few years has flooded the U.S. economy with liquidity by buying bonds held by banks, a monetary policy tool known as quantitative easing that aims to push interest low and send stocks higher.
Romney has said he disagrees with Fed policies, but according to Faber and Rogers, neither candidate has the stomach to streamline the economy and let it rejuvenate on its own.
“It doesn’t matter if it’s Romney or Obama, they are both the same — they don’t have a clue what’s going on. They caused the problems. These are the guys who got us into this situation, and you think they are going to get us out?” Rogers told CNBC’s “Futures Now” online news venue.
“And [Fed Chairman Ben] Bernanke is certainly not going to get us out, for God’s sakes. But he is going to print money, he is printing money and the risks is if they print a lot of money, why can’t the Dow go to 20,000 or 30,000?”
Gold tends to perform well as an inflationary hedge when the Fed moves to jolt the economy with monetary stimulus, as do stocks as the dollar weakens and interest rates fall.
Soaring stock indices, some say, don’t reflect mounting inflationary pressures and aren’t supported by corporate fundamentals but rather cheap money looking for yield.
“If they continue to print that money and the Dow does go to 30,000, I assure you gold and a lot of other things are going to skyrocket as well.”
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