Sunday, July 31, 2011

You Think Economic Problems Are Bad Now?

Russia Today (RT) interviews Jim Rogers about the pending US debt ceiling issue and what all this really means for the future of the US economy and for the average American in general.

RT's Lucy Kafanov asks Rogers, "When you say that even if we do reach this deal everthing looks good for a little while but six months to a year it gets worse. What do you mean when you say it gets worse? I mean it's easy to talk about these abstract terms but if you look at the facts, 14.1 million Americans unemployed, over half of all American families live from paycheck to paycheck, more than 44 million are on food stamps. What is it going to look like for those of us who can't afford to move to Singapore?"

To which Rogers replies, "We are all going to continue to get deeper and deeper into debt. ... The overall situation is getting more and more serious. America is now the largest debtor nation in the history of the world. This cannot go on forever. ... You think the problems are bad now? You wait until we don't have any more credit. You wait until the currency is collapsing. You wait until interest rates are going through the roof and inflation is going through the roof. It's not going to be a pretty picture. There will be social unrest. It's going to be a mess. But the sooner we deal with it the better."

Jim Rogers has taught finance at Columbia University's business school and is a media commentator worldwide. He is the author of Adventure Capitalist, Investment Biker, Hot Commodities, A Gift to My Children, and A Bull in China.