Sam Zell, who is the chairman of Equity Group Investment, has warned the U.S. administration that their current financial strategy will bring further inflation in two years. He is of the view that the U.S. government should reduce borrowing by abandoning some publically financed programs.
He was talking to CNBC and told, “Current administration is insensitive to the risks of the scale of debt we’re creating”. He was of the view that it is very difficult to visualize that the current tendency of the government to pile up debts will not create inflation in one or two years because the facts and figures are speaking for themselves as the ultimate consequence mathematically. He told why the paper currencies around the world has lost and regarded investment in gold on the global level as one of strong reasons behind the devaluation.
He commented on the position of the dollar and told that it is getting weaker and weaker but, on the other hand, one should not lose sight of the fact that it is the only currency in the world which is a reserve currency. There is no other reserve currency in the world. This very status of dollar gives great vitality and an international power to the U.S.
He strongly criticized the budget deficit measures for health care reform or other capital and trade reforms. He advised the government to focus more on creating more and more jobs and postpone other endeavors which are long term. Once the economy is in good condition, the other measures can be taken then.
Sam Zell
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