Jim Rogers: We Have a Serious Debt Problem in
the West, Somebody Has to Deal With It
global investor and chairman of Singapore-based Rogers Holdings,
Jim Rogers said some European countries are bankrupt or are having
serious liquidity problems and should be allowed to restructure
on CNBC Worldwide Exchange Rogers said: You need to let Ireland
go bankrupt. They are bankrupt, why let innocent Germans, Poles
or innocent anybody pay for mistakes made by Irish politicians and
are bankrupt. Let them go bankrupt, let the banks' shareholders
lose money, let banks' bondholders lose money, let Ireland reorganize
and start over, that's the only thing that's going to work. Zombie
banks and zombie companies is not going to work," he added.
ministers from the 16-country strong eurozone said that the existing
safety net of €750 billion (US$1 trillion) was large enough,
and praised both Portugal and Spain for the steps they were taking
in getting their economies in order.
Some fear that
the existing fund would be overstretched if countries such as Spain
and Portugal followed Greece and the Irish Republic in asking for
the head of the International Monetary Fund, Dominique Strauss-Kahn,
had called for an increase in the size of funds available for support.
And on Tuesday,
he criticized Europe's response to the eurozone debt crisis.
Athens, where he was attending a meeting with the Greek prime minister,
Mr. Strauss-Kahn said: "The eurozone has to provide a comprehensive
solution to this problem. The piecemeal approach is not a good one."
Greece is insolvent,
Portugal has a liquidity problem, Spain has a liquidity problem.......the
UK is totally insolvent, Rogers told CNBC.
is a serious problem we have in the West, somebody has to deal with
it, he added.
Barack Obama announced last night hell accept a deal to sustain
all the Bush-era tax cuts for high- income taxpayers for two more
years in exchange for extending federal unemployment insurance for
the long-term jobless and cutting the payroll tax by US$120 billion
for one year.
taxes is always good for the world and for the economy, so we can
presume that things will slowly continue to creep up for a while,"
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Rogers has taught finance at Columbia University's business school
and is a media commentator worldwide. He is the author of Adventure
Gift to My Children, and A
Bull in China. See his
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