Jim Rogers: 'Let Greece Fail, It Would Be Good for the Euro'
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I love this guy. In the clip below, he dishes out his patently-straightforward analysis of the Greek debt problem. He demands accountability from the Greeks (and anybody else asking for a bailout), and dismisses concerns that sovereign CDS traders are the problem – “Were they the ones who increased deficits to 12% of GDP?”
Other talking points:
- Will China let their currency float?
- U.S. equities are “overdue” for a correction
- He’s been long the dollar for 5-6 months and it’s still working.
- Calls himself a “horrible stock market timer and trader”. This, from the guy who co-founded the Quantum Fund with George Soros, which saw returns of 4200% over the first 10 years.
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hat tip Dollar Collapse.
About the author:
Adam Sharp
Areas of interest include financial regulation, monetary policy, debt, corruption, and taxes. I lean libertarian on most issues, political and financial. I briefly worked as a Financial Advisor (series 6 and 7), and handle my own investments. Check out www.bearishnews.com for more.
- Company: Wealth Daily
- Blog: Bearish News
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The decision is, effectively, up to Germany and the German middle class and family owned and medium sized enterprises. If Germany keeps bribing and coddling Greece then it will, inevitably, have to do the same for Spain, Portugal and Italy.
Germany does not have the resources to do so. Consequently either Greece is severed from the EU or Germany itself will descend into economic uncompetitiveness, civic disorder and social fragmentation.
A disease cannot be bribed or rationalized into non existence; it must be treated. The more threatening the disease the more rigorous, prolonged and painful the treatment. Sometimes the treatment entails surgery and even removal of the diseased organ or amputation of a diseased or badly maimed limb.
The choice for Germany is to either face the Greek disease with honesty and resolve or itself be infected and crippled.
I am interested in his comparison of China to Japan, if you look at the situation leading up to the 1985 Plaza accords, there are many parallels. The US under Paul Volcker's Fed aimed to balance the trade deficit with Japan via devaluing the US Dollar against the Yen and Deutsche Mark. The Japanese resisted for several years, as the Chinese are resisting now, then agreed to a planned devaluation. The ensuing Japanese slowdown sparked the low interest rates and expansionary fiscal policy that led to its own massive bubble at the end of that decade.
He's hilarious: "Betty, Betty, come on, you know I'm not that smart."
Living in a denial is a happy mental state !!