Jim Rogers shares his thoughts on the effects of stimulus bailouts in America, Australia and Asia.

Mr. Bernake has never been right. He has been in government for six or seven years and never been right. If I came on your show every week and was wrong 8 or 9 weeks in a row you’d probably stop inviting me. Mr. Bernake has been wrong for 300 weeks in a row. He has never been right. If you get your advice from Mr. Bernake you’re going to go broke.

Two weeks ago, Chairman of the Federal Reserve Ben Bernake said that the recession would be winding down and recovery would begin at the end of 2009. Believe this prediction at your peril.

There is no such thing as “too big to fail.”

This is horrible economics and outrageous morality, not that politicians care about morality.

Irresponsible banks and companies have made some bad decisions, and they should pay the price. The stimulus and bailouts the government is giving to these companies goes against free market principles, at the detriment of those companies that made good decisions.

We have to face reality. If you don’t face reality and twiddle along and believe Mr. Bernake that everything is ok you’re going to get hit by a two-by-four and it’s going to hurt very very badly. So I would urge you to be prepared.

Some parts of the world economy are going to boom. Agriculture is about to become one of the most exciting industries in the world in the next 20 or 30 years. There are plenty of people in the world that are going to do extremely well in the times that are coming up. But it’s not Wall Street.

When the economics of the world change, investors must change their perspectives to accomodate for new opportunities. Instead of growth via paper-trading on Wall Street, we’re going to see real growth, measurable in physical asset production, become the new boom globally over the coming decades.

It looks like I’ll probably wind up putting a lot of it [my money] into real assets such as cotton or zinc or gold or oil or whatever it happens to be. I’m talking about real products that people use every day.

The financial community is going to be a bad place to be for the next 10 to 30 years.

If you ask me, yes, we’re going to have another depression in the United States because the politicians keep bungling it. That’s what caused the depression of the 1930’s. Politicians kept making mistake after mistake after mistake and I’m afraid it’s happening again.

If you want to have one single cause, it’s the Central Bank in the United States.

At this point, the politicians in Washington (and around the world) have committed Trillions to bailout the ailing economy. If history is any indicator, we will have a repeat of the Great Depression, and perhaps this time around, it will be even worse – the Greater Depression.

Australia should be one of the countries that comes out of this in good shape because you have lots of natural resources. The people that are now going to inherit the Earth are the people that are going to produce real goods, such as Australia. Unfortunately, your politicians are as bad as American politicians.

Australia is not so lucky right now because politicians keep making mistakes.

Watch Jim Rogers’ Australian Dateline Interview – March 1, 2009: