Famed investor Jim Rogers says it's wake-up time.
"I think we are getting closer and closer to the point where someone in Europe is going to have to take some losses, whether it's the banks or the countries, but somebody has to acknowledge that they are bankrupt," Rogers told The Daily Bell.
"The thing that the world needs is for somebody to acknowledge reality and start taking haircuts."
Rogers says it appears that America does seem to understand, at least on paper, that there are "staggering" problems.
|Jim Rogers (AP photo)
“We still haven't seen much action. I haven't seen anybody cut any spending in a serious way,” he says. “We are still bankrupt and the situation is getting worse, not better,” he says.
"Now, usually when you have this kind of situation it usually leads to social unrest and more political backlash, I suspect it will this time too," he says.
Rogers also notes that huge shortages of water developing west of the Red Sea area, in northern India and northern China and in the U.S. Southwest.
“If you can find a way to invest in water, you are going to be extremely successful and rich,” he says. “You shouldn't own water, though, because if you own water the politicians are going to snarl and sneer and say you are capitalizing on God's-given-right to water, you filthy capitalist.”
“But if you can transfer water or clean water or provide water, they will build a monument to you in the public square, and you will be extremely rich.”
The Wall Street Journal reports that U.S. water managers warn that Lake Mead, the West's largest and most important reservoir, remains perilously near the level of 1,075 feet at which the U.S. Secretary of the Interior would likely declare a water shortage.
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