Jim Rogers: global economy heading for a crisis

A massive build-up of debt will plunge the world economy back into turmoil, believes investment guru Jim Rogers.

Jim Rogers, the Singapore-based investor and author who co-founded the Quantum Fund with George Soros, is very pessimistic about the global economy. "The world is going to have serious problems because of the massive build up in debt over the past eight years," he tells Truewealth Publishing. The outcome will be more severe than the last crisis and America will be at the epicentre of the disaster, because the Fed's balance sheet has grown more than sixfold since 2008. Consequently, he is shorting the US stockmarket, which remains near its all-time highs.

Nonetheless, Rogers is long the US dollar. His rationale is that "in times of turmoil" the greenback "has been the best place to be when things go bad". Still, he worries that "at some point, the US dollar will be overpriced", so "if it goes into bubble territory, it will be time to sell". In that case, he'd focus on gold, because it has "preserved its value over long periods of time".

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