Jim Rogers is a bestselling author, financial commentator and successful international investor. Rogers was a co-founder of the Quantum Fund (considered to be the first truly international fund of its kind) and is the creator of the Rogers International Commodities Index (RICI).
Friday, August 12, 2011
The only thing that works is what happened in Scandinavia 21 years ago
The idea of printing more money and buying worthless bonds instead of forcing people to go bankrupt is ludicrous. That's how you destroy an economy, that's how you destroy a financial structure and that's how you destroy the euro. No matter what projections you look at all of them show the debt in these countries will be higher in five years not lower and that's destroying the economy of Europe and the euro. Greece should stay in the euro, but make them go bankrupt, make them stop spending, make the people who lent the money to the wrong people lose money. The only thing that works is what happened in Scandinavia 21 years ago. They saw there were problems and they took their losses and had horrible pain for three years but since then Scandinavia has boomed. I wouldn't buy the euro now but I a certainly not selling it as I expect it to go up. If you want to buy a currency I would rather buy the dollar today of those two but I am not doing either. - in FT.com
at 2:23 AM