Billionaire investor and commodities expert Jim Rogers said in an interview on CNBC today that the euro zone will pay a "terrible price" going forward no matter if the European Central Bank (ECB) launches a large acquisition of bonds or not.
Rogers said: "These guys have been saying the same old garbage for a long time. It's not a game-changer - it's good for the market for maybe a month. The debt keeps going higher and higher and eventually we'll all going to pay a terrible price."
As for what he considers a misguided idea for investors to get back into buying some riskier assets because of the announcement, he said this:
"It's not an opportunity to make money for me. This is not good for the market and it's not going to last. Every three or four months they have a summit and they say: Ok guys, everything is ok now. The market goes up. But we're getting a little tired of this and the market is getting a little tired of this," Rogers noted.
As for the commodities bull market Rogers has predicted and continues to assert will last for a long time, he said this:
"The bull market in commodities will end some day - but some day is a long way away.
"Commodities have been correcting for a while. Now everybody knows they're throwing money into the market, and history tells you that when they do this the way to protect yourself is to own real assets whether it's silver or rice. If the world economy gets better, I own commodities because there's shortages developing. If it doesn't they're all going to print money. It's the wrong thing to do, but it's all they know to do."
There is also a growing belief that the Federal Reserve is poised to introduce another round of quantitative easing in the United States, and the central bank of China is also believed to be ready to provide more stimulus in its slowing economy.
Over the long term, when added together, it'll be a powerful impetus for numerous commodity price increases.