It has been just reported the fact that the important investor Jim Rogers is warning people about a serious financial crisis that could hit the US even harder than before. The debt levels continue to rise, and things are not looking great at all. Check out the latest reports about this below.
Jim Rogers is warning about a new potential financial crisis
According to one of the co-founders of Soros Fund Management, a private investment firm worth $5.61 billion, the United States is in a precarious situation due to its increasing amount of debt.
In a recent interview with Sputnik International, legendary investor Jim Rogers says the US went from a creditor nation to the “largest debtor nation in the history of the world” in a span of half a century.
Rogers predicts that the country’s debt problem, which has reached a staggering $32.47 trillion, will lead to long-term consequences such as persistent inflation and increased interest rates.
“In the 1970s -1980s, the last time we had this kind (of problem), interest rates went to 21% on government bonds, government paper, because the inflation was so bad. The inflation now is worse.
In 1980, the United States was still a creditor nation. Now, the United States is the largest debtor nation in the history of the world. So sure, things feel okay at the moment. Things have calmed down at the moment… but it’s not going to last forever.”
He continued and said the following:
“Somebody’s got to pay this debt. Somebody has to print more money. Somebody has to borrow more money. And when you borrow huge amounts of money, interest rates will go higher and higher. Inflation will go higher because so much money has been printed.”
According to a renowned investor, the nation’s unprecedented levels of debt will result in the most significant financial crisis of our generation.
“We had a problem in 2008. I will tell you the next time we have an economic problem, it’s going to be the worst in my lifetime and that means the worst in your lifetime, too. In 2008, we had a big problem because of too much debt. Since 2009, the debt everywhere has skyrocketed. So the next financial problem has to be very, very serious because the debt is so much bigger.”
