Jim Rogers on Euro Crisis: Staggering Numbers Involved

By on November 7, 2011

Jim Rogers - Renowned International InvestorJim Rogers was interviewed by Reuters’ on Friday regarding the Euro crisis; specifically the Greek bailout.

Rogers commented that the solution was, “just pushing the problems out into the future.”  He added, “everybody is trying to get past the next election and it’s not going to end well at all.”   He warned, “it’s going to end very, very badly for all of us.”

Putting the risks into perspective Rogers continued, “there are huge staggering numbers involved but not just Greece, all over Europe and these guys just don’t seem to get it.”

When asked his opinion whether Greece should stay in the European Union, Rogers said, “of course they should.”  He added that they should continue with the euro also.  Rogers said they needed to declare bankruptcy and the huge losses be shared.  The banks should be ring-fenced to “make sure everybody’s checks clear.”  Rogers warned, “all of these plans show everybody deeper in debt next year; deeper and deeper in debt in two years; deeper, deeper, deeper in debt in three years.”   He added that it wouldn’t solve our problems.

Rogers was asked if he thought the Greek people were ready to accept the austerity measures.  Rogers stated bluntly, “if they don’t they go bankrupt; who’s going to put up the money?”  He added, “let the Greeks refuse to accept it, that’s fine, but then where would they go to get their money?”

When posed with the question of whether this was an end to the “grand experiment” of unified Europe, Rogers indicated it wasn’t.  He said cities, counties and states in America have gone bankrupt without ending the U. S. and the dollar.  He added, “this happens all the time.”  Rogers put it simply,” let them go bankrupt, let the people who made the bad loans take their losses and start over from a sounder base.”

Rogers said it was a mistake to keep pushing the Greek problem out into the future.  In five years it could result in a collapse of the euro, EU, and potentially all of the Western world.

Rogers indicated there was enough credibility within Europe (Germany, Finland, etc.) to solve the Greek crisis without it spreading outward.  He said waiting five years will result in massive bankruptcies and systemic collapse.

Rogers was asked what he thought of the plans to boost the power of the IMF through expanded use of SDR’s.  Rogers said they don’t solve anything and just create more debt.  He said the G20 countries, including the U. S., don’t have the money.  He added that the problem of too much debt can’t be solved with more debt.  He said it would just make the system worse and when it collapses, “there’s nothing anybody can do.”

Rogers said Greece should be allowed to fail over a year ago (link).

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>