Jim Rogers: Global Financial System Headed for Collapse

Monday, 09 Dec 2013 08:59 AM

By Dan Weil

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The global financial system and economy aren't in good shape at all are are poised to implode, says international investor Jim Rogers, chairman of Rogers Holdings.

"Eventually, the whole world will collapse," he told CBC (Canadian Broadcasting Corp.). We in the West have staggering debts. The U.S. is the largest debtor nation in the history of the world."

Central bank easing is artificially propping up global economies now, Rogers says. "This isn't going to last. When it ends, the bull market in commodities will probably end too, but the bull market in a lot of stuff will end."

Editor’s Note: 5 Reasons Stocks Will Collapse . . .

The United States has financial crises every four to six years, and their severity is dependent on the country's debt burden at the time, Rogers says.

"[The one in] 2008 was worse than 2002 because debt was so much higher," he said. "Wait until 2015 or 2016: debt has gone through the roof. The next one is going to be very bad."

In the meantime, Rogers remains bullish on commodities, despite their recent decline. "It's mainly because of continued growth in demand and supply constraints," he said. In particular, Rogers likes agricultural commodities, especially sugar, and natural gas.

He says that commodities are just in a correction now. Some experts think that correction will last longer.

"It’s likely that the trend will hold through the end of the year," Michael Cuggino, a fund manager at Permanent Portfolio Family of Funds, told Bloomberg.

"Investors see anemic or slowing economic growth in the world’s mature and emerging-market economies, while there’s more supply on hand. That translates to lower prices."

Editor’s Note: 5 Reasons Stocks Will Collapse . . .

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