Global Financial Crisis Coming As Debt Levels Skyrocket
An interview with Sputnik International featured Jim Rogers, co-founder of Soros Fund Management, a private investment firm worth $5.61 billion. Rogers expressed concern for the United States, as the country’s debt has i...
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An interview with Sputnik International featured Jim Rogers, co-founder of Soros Fund Management, a private investment firm worth $5.61 billion.
Rogers expressed concern for the United States, as the country’s debt has increased significantly in the past fifty years, making it the largest debtor nation in history.
More details about the nation’s debtHe predicts that the nation’s debt, which currently amounts to $32.47 trillion, will have detrimental effects on the economy, resulting in persistently high inflation and increased interest rates.
“In the 1970s -1980s, the last time we had this kind (of problem), interest rates went to 21% on government bonds, government paper, because the inflation was so bad. The inflation now is worse.
In 1980, the United States was still a creditor nation. Now, the United States is the largest debtor nation in the history of the world. So sure, things feel okay at the moment. Things have calmed down at the moment… but it’s not going to last forever.
Somebody’s got to pay this debt. Somebody has to print more money. Somebody has to borrow more money. And when you borrow huge amounts of money, interest rates will go higher and higher. Inflation will go higher because so much money has been printed.”
According to a renowned investor, the current high levels of national debt in the country may lead to the most significant economic crisis of our generation.
“We had a problem in 2008. I will tell you the next time we have an economic problem, it’s going to be the worst in my lifetime and that means the worst in your lifetime, too. In 2008, we had a big problem because of too much debt. Since 2009, the debt everywhere has skyrocketed. So the next financial problem has to be very, very serious because the debt is so much bigger.”
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