Another recession is on its way for the United States next year or the year after, and it’s not going to be pretty, says star investor Jim Rogers.
The government will likely address the fiscal cliff before Jan. 1, but that won’t be enough to save the economy, he tells Yahoo.
“Sure they’re going to do something, because the economy is going to start getting worse next year,” Rogers says.
Editor's Note: See the Disturbing Charts: 50% Unemployment, 90% Stock Market Crash, 100% Inflation
“There will be some relief. Whether it’s going to save the economy, I doubt it.”
The economy has suffered a recession every four to six years throughout our history, he says. The last recession began in December 2007 and ended in June 2009.
“In the next year or year after, we’re overdue for a recession,” Rogers says. “It’s going to happen.”
The 2001 recession was mild, he notes. And the Great Recession of 2007 to 2009 was worse because debt was so much higher.
“Next time around, whether its 2013 or 2014, is going to be much, much, much worse, because debt has skyrocketed since then,” Rogers says. “This is not going to be fun.”
Many Americans are still feeling the effects of the last recession. Real median household income dropped 1.5 percent last year to $50,054, according to the Census Bureau’s annual report on income and poverty.
“The lasting impact [of the Great Recession] has been at levels above the poverty level,” Tim Smeedling of the University of Wisconsin-Madison tells NBC News.
Editor's Note: See the Disturbing Charts: 50% Unemployment, 90% Stock Market Crash, 100% Inflation
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