Jim Rogers sees trouble ahead and believes the lengthy period of relative calm will end.
“We have never had such a long period, fifteen years without problems. History would indicate that we are getting closer to a big problem,” he said.
The return of higher inflation is why Jim Rogers sees trouble ahead
“I do see problems developing. Many new investors are coming in who are very excited and think it is an easy way to make money,” said Jim Rogers.
“I can see problems developing with inflation starting to come back in many parts of the world. I am not selling short yet, but I have certainly reduced my longs by a gigantic amount,” Jim Rogers added.


“I do see problems developing. Many new investors are coming in who are very excited and think it is an easy way to make money”
JIM ROGERS
Jim Rogers sees trouble ahead due to the excessive liquidity from the previous easing cycle
“Many central banks, including the Fed, have printed loads of money in the last few years. They say they have slowed down, and they seem to have. But all that money is still out there, and the debt in the US is staggering,” said Jim Rogers.
“It is good to be old and not a good time to be a young American because the problems my children are going to have with debt are gigantic,” he said.
Jim Rogers warned about the perils of excessive public debts, citing the rise and decline of Britain.
“A hundred years ago, Britain was the world’s richest and most powerful country, and fifty years later, they were bankrupt,” he said.
He noted the humiliation of Britain having to go cap in hand to the IMF for a bailout.

“A hundred years ago, Britain was the world’s richest and most powerful country, and fifty years later, they were bankrupt”
JIM ROGERS
“In 1976, the IMF had to fly into London to pay the bills. They went from number one to bankrupt, which has happened many times in history to countries,” said Jim Rogers.
Referring to the sky-high public deficits, he said he looked at the numbers and is unable to comprehend how the treasury and politicians can’t understand the problem.
“I don’t see anyone in our lifetime who will get the problem solved,” said Jim Rogers.
“It is going to cause a lot of pain to solve the problem,” he said.
Elon Musk, who will head up the Department of Government Efficiency (Doge) admitted that his proposed cuts would cause economic pain.
“The way this plays out in history is that the debt gets higher and higher until the country has a serious debt problem, and then they come in with exchange controls,” he said.
“Everyone is having a very good time now, and as I said, even China was in the dumps for a long time, and is booming now” – Jim Rogers
Jim Rogers explained that these controls start with a specific amount of money, starting with a large amount. “These exchange controls get very tight and serious, which means debts get higher and higher for everyone, and then you have a debt crisis, currency crisis, and this is not fun,” said Jim Rogers.
He noted that ballooning debts and deficits happened in Spain and France. “Look around the world, and this has happened many times in history,” he said.
Jim Rogers sees trouble ahead but believes countries can and do recover.
“Countries have turned around, but that doesn’t mean they will not have bank bankruptcies, Civil War, etc in the meantime.
As I look around the world, the Chinese market is booming.
The Japanese market was down for 35 years, and most people were not around when the Japanese market made its last low,” he said.
“Everyone is having a very good time now, and as I said, even China was in the dumps for a long time, and is booming now.
I don’t know any market that is not in the dumps, which is usually a sign to start worrying,” he added. “China got hit with a virus and property bubble, and they tried to stop it many times and were unsuccessful.
But now somebody has popped the bubble when the government tries to make things okay, it is alright for a while because the government has more money,” said Jim Rogers.
Regarding Japan, Jim Rogers noted that its population has a declining population, especially made worse because of their no immigration policy.
“I, do own gold and silver, and if I could only buy one, it would be silver”
– Jim Rogers
“I don’t see anything that is going to save Japan, their debt keeps going higher, and the population keeps going down, and that is a serious problem,” he said.
“In 2007 and 2008, China bailed us all out because they had a lot of money saved. The Chinese have a lot of debt, so the world has changed. China is booming, the government put a lot of incentives to help the economy and market, and it is working,” he added.
Jim Rogers sees trouble ahead, so where is he investing?
“I do not own bonds, and I don’t short bonds. I don’t see anything that could make bonds go a lot higher,” he said.
“Should the world move from USD to gold, who knows how high gold will go?”
Jim Rogers believes during times of a huge crisis, the world always returns to gold, and he thinks the gold standard could return.
“I, do own gold and silver, and if I could only buy one, it would be silver,” he said.
He would rather be in commodities than stocks
“I look outside the window. I have seen this story before,” he said.
He noted small wars in several countries as tensions escalate and people become aware of war.
He doesn’t think Bitcoin will be the new currency.
“I don’t see most governments saying ok,” he said.
They want monopoly control and power. One of the advantages of Bitcoin is that you can’t have a monopoly or power.
“I don’t see Bitcoin coming to the rescue to save the USD,” he said.