First the U.K received the unwelcoming news about the pound being finished. Now, Jim Rogers is stating the Euro will not be around in 20 years. Jim cites:
“The euro will not be around in the next 20 years, but Britain would have been better off had it joined the single European currency when it had a chance”
What’s in store for other European companies such as Italy and Germany?
“The Italians and Germans will be in chaos because they have no plan B.”
And our British Mates…?
“Britain is “a deeply indebted nation, the government is spending gigantic amounts of taxpayer money propping up banks which should have been allowed to fail,” Rogers said. “If I was a British taxpayer I’d be totally outraged!”
Pound may approach dollar parity
“The pound could fall near parity with the dollar in coming years given Britain’s increasing debt and lack of economic growth drivers.”
How Soon?
“I suspect it’s going to make new lows — it may take a decad,”…… “It’s got near parity with the dollar before…why not again?”
How to help our friends across the pound?
“Take the pain, clean out the assets and start again”
Let Autos Fail
“Anybody who fails should be allowed to fail,” Rogers said. “Capitalism without bankruptcy is like Christianity without Hell – it doesn’t work otherwise.”
Current Financial Crisis
“We’re certainly not out of whatever we’re in and whatever we’re in is getting worse”
New Adminstration
“Obama has got the wrong plans and the wrong people”
“I’m not buying stocks anywhere — the world is in recession and it’s not going to get better,” he said. “If politicians keep making mistakes it’s going to last longer and longer.”
Bright spots….
“if you speak Chinese, go to China. Or try farming. I’m more optimistic about agriculture than any other industry. If not farming, anything to do with raw materials or natural resources.”
Sources: This, This and This!!
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January 28th, 2009 at 4:32 am
“The euro will not be around in the next 20 years, but Britain would have been better off had it joined the single European currency when it had a chance”
This is a very bold statement from Jim. And i suppose only time will tell.
Interestingly, Peter Schiff often states that he sees the Euro as being the strongest candidate for becoming the new Reserve currency of the world.
If Jim is calling for a Euro collapse AND a USD collapse — would Yuan be his bet on the next reserve currency? Or perhaps a new currency altogether, one backed by gold?
mac
January 28th, 2009 at 3:09 pm
My guesss is Ji would go with some Asian curreny whether it be Yuan, Yen,etc. I do not know. But, Jim has opened my eyes to how “healthy” and cash rich these Asian companies have become. They are the ones buying our treasuries, exporting like crazy, and whose financial crisis might not be as deep as ours.
January 29th, 2009 at 2:24 am
Agreed. Right now, the Asian countries service our consumers. It’s about time they create their own consumers, especially China, who is adding 15 million people to the middle class each year. They’re all going to want iPods, Pickup Trucks and lattes. Once their economies start cranking up for themselves and not for the US, we’re toast — heck, we might be already.
Why would China lend the US $1.5 – $3 Trillion for infrastructure projects here, when they can build their own infrastructures?
Time to learn Mandarin?
do they have a Mandarin for Dummies or something of this nature?
Mac