The most successful commodity investor in the world Jim Rogers said during his lecture at MoneyShow in San Francisco that the world is heading for the deepest financial crisis in his life, “and I belong among a lot of old people.” The overall economic situation in the world is rated “terrible” which blame the central banks of the European Union and the United States, which, by pushing money, has already prompted even more indebted people to “leverage even more.” The policy of central banks in the form of zero and even sometimes negative interest rates is considered to be the cause of fictitious economic growth. Informs World Light.
“Never in history has interest rates so low. In some countries, interest is even negative. This has never happened in history. Some off-site governors admit that it’s an experiment, and they do not know what to do. “
While the crisis broke out in 2008 as a crisis of the over-indebtedness of the private sector that took over the states, the unprecedented crisis will be a crisis of over-indebtedness of states, but no one to take over and pay their people, and therefore we expect a wave of bankruptcies not only of individuals but of states.
“We’ll all pay a scary prize for this. Interest rates return to normal levels. It is possible that I will go even higher. At the moment of this, people pay a very, very high price. “
Jim Rogers considers statements by former US Central Bank President Janet Yellen that the world will never again experience a recession, bewildering. He pointed out that the Fed’s money supply in the last 10 years has grown by 500% and the world is indebted as never before. Though 30 years ago, the US was a global creditor, Rogers is currently “the biggest borrower, not only in the world but in history. It is unbelievable what American politicians have been able to do in this area for so short a time. “For this reason, it is unrealistic to expect economic growth to last forever.
People buy dollars in panic
Despite his comments, Rogers said he had converted his property to US dollars today, not because the dollar was a fixed currency, but because when panic broke out, people thought the dollar was safe and buying it. Therefore, it expects its appreciation. “In panic, people do not buy the euro, nor the British pound, but the dollar. When he evaluates, then I sell him. It’s also easy to make money, “Rogers said.
Rogers currently sees the best investment opportunities in Russia. “Russia has very little debt. It is unbelievable, how little is the debt. “He considers something that causes the crisis to be the cause of the crisis. “In 2008, the financial crisis broke out in Iceland. No one knew that Iceland existed. But then Ireland came to scratch Lehman Brothers, “concluded Rogers.
Jim Rogers, together with George Soros, had an investment fund in the early 1970s, which earned more than 1000% a year. He then became independent as he did not want to speculate on currency, but focused on commodity trading. Today, he is considered the best investor in the world. Jim Rogers lives in Singapore to teach his children fluent Chinese, because he says “19. the century belonged to Britain, the 20th century and the 21st will belong to China, whether they like it or not. “