The fundamentals for commodities were not affected by government policies that are propagating inflation, Jim Rogers, CEO of Rogers Holdings, told CNBC Wednesday.
"I bought more agriculture this week," Rogers told "Squawk Box Europe." "What's happening is that there will be less supply of everything if we ever come out of (the credit crunch). Nobody can get a loan for a zinc mine or, long term, increase crop production."
If history is any guide, things to buy are things that are doing fine right now like water treatment companies in Asia or agriculture, Rogers added.
Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben Bernanke should resign for keeping alive "zombie banks" that should be allowed to fail, he said.
The Japanese government refused to let financial institutions fail in the 1990s, Rogers said.
"It's 18 years later and their stock market is 75 or 80 percent below what it was 18 years ago," he added.
Rogers also said that interest-rate cuts are coming.
"I know we are going to get aggressive rate cuts everywhere, that's why I'm long short-term government bonds in the U.S., but shorting long-term government bonds because it's not going to help, it's going to add to inflation," he said.
More from Jim Rogers:
- Governments Keep Making Mistakes
- Inflation to Climb on Government Intervention
- Innocents Paying for Others' Mistakes