Â Jim Rogers discusses the Eurozone crisis on Max Keiser’s Oracle on February 27, 2009.
On the collapse of Latvia and Iceland, and how it may affect Western banks:
It’s ($1.2 Trillion debt) certainly going to swamp a lot of European banks. Many European banks went over there and sold all sorts of undercut mortgages to unsophisticated Central Europeans and now they’re going to pay the price. You think Latvia and Iceland are going to be the only places with changes of government, I’m sorry to tell you there are going to be a lot of changes of government. There’s going to be civil unrest in many places around the world.
On Austira banks loaning 70% of their GDP (Over $200 Billion Euros) to Eastern Europe:
Many of the Austria banks are in serious trouble now.
The banks got swept away with what a good idea it was.
The only way to get out of this is to take our pain for a year or two or three. Throughout history banks have been going bankrupt. Let them go bankrupt. this is horrible economics and terrible morality.
On European and US bailouts:
I’m suggesting you let the rich people go bankrupt. This is welfare for the rich. Let them go bankrupt.
The world doesn’t have enough money to bailout everybody.
Max Keiser’s Oracle Predictions:
- A New World Currency?
The IMF prints new global currency as 42 nations apply for emergency loans.
- Good Europe, Bad Europe?
Good Europe, Bad Europe created to isolate toxic debtor nations from Germany
Jim Rogers Responds:
I don’t think the IMF is going to issue a new currency. What the IMF is probably going to do is sell all of their gold and pass it out to as many people as they can. And that would be the end of the IMF. And, Thank goodness. The IMF has been a disaster.
Â Watch Jim Rogers on Max Keiser’s Oracle February 27, 2009 (Part 1):