Monday, June 1, 2015

Wars, Government failures coming in the future

Throughout history we have had economic slowdowns every four to seven years, every so often. Always have, and always will. Nobody has solved that problem, not even the central banks. We are going to have another one in the world. We are going to have more I should say, and they will get worse because the debt situation is higher and higher. We hear all this talk about austerity and cutting back but every country in the world has higher debt now than it had last year and will have higher debt next year.

The buildup of debt in the US alone is staggering; Japan is staggering, everywhere is staggering. So the next time we have an economic slowdown it is going to be much worse than the last time, and if the world survives that one, the one after that is going to be worse and worse.

Because as you point out, if interest rates go higher – and they will; this current level of interest rates is not only abnormal but absurd, it has never been so low anywhere in the world – with the gigantic amount of debt we are going to have gigantic problems worldwide: more turmoil, we will probably have wars, governments fail, countries fail. This is going to be a mess.

So buy yourself a farm. Be prepared! It’s going to be a serious mess. And hopefully your farm will be far away from the marauding hordes.

Jim Rogers is a smart investor who co-founded the Quantum Fund with George Soros in 1973. By 1983 the fund gained more than 4000 percent.