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Jim Rogers "Crisis Is Worse Than 2008"

November 09, 2011 | About:

Former hedge fund manager Jim Rogers warned this morning that there is a “100% chance” the world is facing a financial crisis worse than 2008. Italian bond yields have soared north of 7% making the country’s huge debt unsustainable, mandating yet another EU bailout.

"We're certainly going to have more crises coming out of Europe and America; the world is in trouble. The world has been spending staggering amounts of money that it doesn't have for a few decades now, and it's all coming home to roost," Rogers told CNBC.

Perhaps most concerning is the fact that Rogers thinks that the next crisis will be far worse than 2008 because the debt levels are much higher.

"Last time, America quadrupled its debt. The system is much more extended now, and America cannot quadruple its debt again. Greece cannot double its debt again. The next time around is going to be much worse," Rogers said.

"In 2002 it was bad, in 2008 it was worse and 2012 or 2013 is going to be worse still – be careful," Rogers said.

Rating: 3.0/5 (9 votes)


Pwdrhead1711 - 5 years ago    Report SPAM

The ECB is just going to start "Monetizing the Debt". In other words they will scrap their rules and start "printing" money. They will bail out Italy, Greece, and the rest of Europe while devaluing the Euro. Europe will experience massive inflation because the money will enter their economies, unlike the dollar that was absorbed by the great Chinese and Indian retention ponds...
Profitman123 - 5 years ago    Report SPAM

Beig a Brit it is facinating how we have fallen into the trap of fiscal incompetence. After 13 years of Socialism and the endless belief thateth debt will be covered we are now as badly off as any Southern European State, France included.

We have a government who is looking to square off the annual governement spend v income by 2015 yet will have a substantially higher absolute level of debt at the same time.Here the obsession is to maintain the AAA rating at all costs but that is just nonsense, until we are seeing real time value the pound sterling is grossly over valued.

As you have probably seen the tents positioned outside St. Pauls Cathedral have occupants with no specific demands just the want to remove everything. Which wont get us anywhere, but for sure they have focused the mindset of many who are coming to the realisation that the way we are going about things is nothing short of crazy.

Your fellow Jim Rogers is unfortunately saying it how it is as distinct from the mixed messages literally every political representative here and on yuour side choses to discharge.

We are now starting to enter a period where fear is beginning to take control, and we need some outside the box thinking and some serious political leadership. Something which patently is not there at the moment.

I apologise but have forgotten who said we have nothing to fear but fear itself and that is where we are now.

We don;t need a total upheaval but we do need to question how some appear to be earning so much for delivering so little, and why politicians appear more keen or towing teh party line than standing up and being counted.

We need to understand that Social Security support is for helping the deserving and not a life style choice as is endemic in the UK and we need to reasses assets values are.

In short we need to think way outside the box to find a serious solution.

China, Russia, India and Brazil are not longer second division players, they hold pretty well all the cards and they are bang on right not to bail out the Euro when they will see no return on their money.

We need to stop lecturing them and treat them as equals whether it suits or not. The rule of the game has always been he who pays the piper call the tune so lets not pretend we are the piper ant more.

We also need a little bit less press hysteria albeit that the points raised are bang on right, and maybe with some non rhetorical thinking we will get ourselves out of this awful mess.

I just don't see it happeneing with the present line up of Western economy leaders.

Until they change and some balance dthinking comes into play maybe it's best to batten down the hatches straight aftr Christmas and pray for some inspired leadership.
Matt Blecker
Matt Blecker - 5 years ago    Report SPAM
Jim Rogers = the king of hyperbole. Loves scaring the crap out of the little guy.

"The US consumer is done. The US is toast. The US will have a century long Depression!!!! China. I love China. China is really really really really great. Go long China!!!! I love commodities. They are cool!!!! Buy commodities!!!!!!! Bowties!!!! I love bowties!!!!!! Go long bowties!!!!!!!! Quit your job now. Leave the US. And go tend to some farmland in China!!!!!!!
Batbeer2 premium member - 5 years ago
The market value of Greek debt is fraction of the nominal value...... The debt was issued at low single digit rates and is now being taken out by the ECB at hefty double digit rates.

Who loses ?

What is the long-term effect ?
Paulwitt - 5 years ago    Report SPAM
Man, I was running in circles in my living room yelling "gotta sell my stocks, gotta sell my stocks"

I finally passed out from dehydration

I woke up and remembered I have to keep the faith, I'm a long term value investor!

Dfcanuck - 5 years ago    Report SPAM

The trouble is (and this is nothing new), what is needed is far beyond what the politicians can stomach. It's not rocket science, it's math, and it's simple math. Like the founder (Dave) of Wendy's said "Revenue minus expenses = profit.". You dont need a PhD in quantum physics to understand this. The governments around the world are spending more than they are taking in. They only have one source of revenue - the people. They have many expenses - future promises on social security for example, will fall by the way-side (OK, be severely reduced), medical promises, Baby-boomers old-age security etc.. Anyway, if politicians weren't so concerned with being re-elected, they know that if your revenue dries up, then you cut expenses to match. Private companies have no problem doing this - laying off people and cutting expenses when revenue declines. Yet, as a politician, if you cut expenses (aka., screw the people), you know this is political suicide. Therefore, to keep your political job, you propose less-than-required expenditure cuts, and maybe a few tax increases, and pray like hell that the economy improves to increase revenue that will hopefully match or exceed (reduced) expenditures. Of course, it rarely works out.

Me, well, my balance sheet is rock-solid. I have no debts. I dont need to work. I didn't buy the house (that cost $500k to build) for $1.5M when I had ample cash in 2008, but Joe Blow next door did, with his $60,000 Wal-mart "Assistant Manager" position and $30,000 downpayment. Big deal. I'm not trying to impress anyone. If I need to buy something, I pay cash. I'm looking out for my family, and that includes investing wisely now, for family profits long after I'm gone, not burdening them with debt like the sissies we elected to run our countries. Of course (after I'm dead, I won't know this, so why worry), ancient Chinese proverb says " First generation makes the money, second generation manages the money, and third generation blows it.". I'm trying to educate my next generation not to take wealth for granted, to really understand what if means to spend less than you earn, understand the value of a dollar, and to understand why I invest the way I do. So far so good, as I gradually let them ( feel what it's like to) invest a portion of the family wealth, learn to lose, learn to win, and appreciate that money isn't everything, but sure as hell beats being a politician with voters wanting more handouts, and lenders wanting to cut off your.

I wont comment specifically on China, but, I liken it similar to Mark Twain's description of a well/mine - "a hole in ground with a liar standing over it".
Profitman123 - 5 years ago    Report SPAM

I'm not sure what dfcannuck is saying save that it would appear we are all in denial about the repercussions of voting in any politician.

Whatever the Europeans decide to do it will be piece meal and just another sticking plaster.

The issue is about assets backing up expenditure, not tax, and there is too much funny money floating about that is just a joke. By that I mean the derivitives which are onlky there for trading and en masses could hardly be executed even if teh holders slammed the paper on teh counterpartries table.

Political leadership in the USA and Europe is below zero and that is because they still think they are the pipers playing the tune. when the money has shifted to other base camps.

Who cares whether a few politicians commit political suicide if they manage to square the circle on this debt fiasco. If the rational is right and emotion is kept to a minimum a cogent arguement can be made for reducing the American and European debt piles

Like Cannuck said its not rocket science but it is important otherwise money will have no intrinsic value at all.

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