Jim Rogers: Sovereign Debt Risk

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While politicians have used the disfavor of the financial institutions around the world to focus on regulating the industry, which is of course another way of saying they are trying to make it look like they’re doing something, the real issue, according to investor
and commodity expert Jim Rogers is the sovereign debt risk we all face.

The reasons politicians don’t want our focus too much on this is it starts to hit too close to home that the central banks and government financial institutions are behind the extraordinary risk we now face of debt default of nations, which dwarf the banking industry.

What it would unveil is the outrageous practices of the government and socialist around the world who continue to cater to the entitlement fantasies people have been taught to expect the governments to provide them with.

Workers in Greece are basically protesting because other countries in the European Union are pressuring their government to quit doing that very thing, as it results in the people of other nations having to bail them out for all the unbelievable perks they’re given as to what they think life owes them.

As many entrepreneurs and believers in free markets know, the redistribution of wealth eventually runs into a brick wall, and that brick wall is there is no more money to legally steal from the productive. Essentially, that’s what’s happening in Greece through pension and health plans, along with wages beyond what the market can support.

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Jim Rogers has taught finance at Columbia University’s business school and is a media commentator worldwide. He is the author of Adventure Capitalist, Investment Biker, Hot Commodities, A Gift to My Children, and A Bull in China. See his website.

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