In recent interviews, Rogers has been predicting a 2013 recession, bowled over by a potential blowout in Europe and unsustainable spending by the US government.
“Be very worried about 2013 and be very worried about 2014, because that’s when the next slowdown comes,” Rogers told Reuters.
Rogers’ statements usually get lots of attention, mainly because he has an uncanny tendency to be right.
Together with George Soros, he founded the Quantum Fund in the 1970s and posted returns of 4,200% over 10 years. Rogers retired in 1980 at the age of 37, but remains active as a private investor.
Back in 1999, Rogers recommended gold when it was trading at $252 and silver at $4.
We all know what happened after that.
Here’s the Jim Rogers take on the economy and how to survive Recession 2013.
Elections Will End Good Times
Rogers sees the coming elections as the end of a joy ride for both Europe and the United States.
“President Obama wants to get reelected. German Chancellor Angela Merkel wants to get reelected,” Rogers said. That means they’ll both be spending lots of public money to keep voters happy until the elections are over.
The ECB’s controversial decision to purchase unlimited quantities of bonds from struggling Eurozone members indicates Merkel is ready to pull out all the stops to save the euro – and her job.
In fact, Merkel has made a sharp about face and now wants to stop Athens from leaving the euro zone at all costs.
But the EU rescue will “absolutely not” work, Rogers says. He expects the Greeks to be the first to exit the EU.
What’s more, Greece will be merely the first domino to fall.
“You have got countries that are essentially bankrupt. The solution to too much debt is not more. I suspect that the euro will not survive,” he said.
Eventually the entire EU may be restructured with a core group of countries like Finland, the Netherlands, and Austria joining Germany and perhaps France in a new monetary union.
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