Jim Rogers thinks the UK will need a bailout soon

[superfrank]

“How can the UK ever repay the debt that is continually rising?"

http://www.cnbc.com/id/42926502

[Iron]

I fear Mr Rogers may be right, particularly as the Lib Dems now know exactly what the people who traditionally voted for them think of the spending cuts...

The fact that Vince Cable can call the Tories all sorts of nasty names and keep his job tells you how fragile the Coalition is!

Jeff

PS Mr Rogers is paying for his children to be taught Mandarin, which tells you where he thinks the future lies...

“How can the UK ever repay the debt that is continually rising?"

http://www.cnbc.com/id/42926502

[Iron]

Another interview with Mr Rogers:

http://www.bbc.co.uk/iplayer/episode/b0 ... _Holdings/

Jeff

“How can the UK ever repay the debt that is continually rising?"

http://www.cnbc.com/id/42926502

[Euler]

I think Jim should be looking into his own backyard.

http://www.cnbc.com/id/43239586

[Iron]

In fairness to Mr Rogers, he's quite frank in his assessment of the long-term difficulties the US economy is facing.

In fact, he's even having his daughters taught Mandarin!

Jeff

I think Jim should be looking into his own backyard.

http://www.cnbc.com/id/43239586

[superfrank]

I think Jim should be looking into his own backyard.

http://www.cnbc.com/id/43239586

Yeah it's funny that the US bails out other countries constantly (via the IMF) and yet are bankrupt themselves.

The artificial boost from QE and QE2 is now wearing off. We need to have a true recession (which would be healthy), stop trying to prop things up (it never works) and rebuild from there. But no one has the stomach for it these days - expect QE3, 4, 5, 6...

[RideTheLightning]

I think Jim should be looking into his own backyard.

http://www.cnbc.com/id/43239586

Yeah it's funny that the US bails out other countries constantly (via the IMF) and yet are bankrupt themselves.

The artificial boost from QE and QE2 is now wearing off. We need to have a true recession (which would be healthy), stop trying to prop things up (it never works) and rebuild from there. But no one has the stomach for it these days - expect QE3, 4, 5, 6...

When you have central bank that has unlimited powers and is never audited you can do what you like.

http://www.smh.com.au/business/world-bu ... 1f5zb.html

[Euler]

The biggest problem with all these western economies is that when times are good then don't run supluses to cover themselves in hard times. When the hard times hit they just pile up the debt. It's crazy.

I was amazed at the deficits the last Labour government ran up during the longest period of economic expansion in recent history. It's astonishing! The problem was that a lot of the private sector was taxed for spending in the wasteful public sector. While they held up the economy it just poured productive capital down the drain.

People need to invest in enterprise and innovation. The moment you stop doing that you get out competed. Yes competition makes life tough but it's better that the alternative which is a slide into medocrity.

Having travelled a lot, I think it should be mandatory as you realise just how sleepy the aged western economies have become. A lot of it's citizens need a rocket up their arse.

[superfrank]

It's even worse when you realise that much of the 'growth' achieved during the good times was mainly due to massive increases in private debt fueling asset price booms.

Mortgage Equity Withdrawal accounted for a decent sized chunk of UK consumer spending in the years before the credit crunch - it's a comical name for what really is just borrowing more money.

Keynes will be turning in his grave for what has been done in his name.

[rubysglory]

Absolutely superfrank. Euler makes a valid point about government need for Surplus during the good times, but I believe that it is perhaps more a matter of where and how this Surplus is acquired. In Australia, we had a government that posted huge surpluses during the better years and arguably it has fared us well externally during these leaner times post GFC. The reality is however that much of this Surplus was funded by means of Public debt - mortgages, margin lending receipts, the relaxation of pension fund rules and the release of savings into the market etc. The result is that we now have a Two-Speed economy - one driven internationally by a resources boom geared heavily to satisfy China's growing demand whilst, domestically, the other struggling to cope with rising taxes and interest rates and the mountain of personal debt acquired during the 'better times', all very much the result of Western society's greed and a belief in unsustainable exponential growth.


rg

[superfrank]

Morgan Stanley’s Cath Sleeman and Melanie Baker have chimed in, with a note pouring doubt on the UK’s debt dynamics.

Their central contention — the UK’s recently-acquired reputation as a safe haven is totally bonkers. The Office for Budget Responsibility‘s GDP growth forecasts are way too optimistic and, most intriguingly, the amount of UK government debt is arguably larger than it appears.

FT Alphaville - The great UK debt reveal
http://ftalphaville.ft.com/blog/2011/06 ... bt-reveal/

[Iron]

In the States, I believe that people appointed to certain high offices of state have to be approved by a cross-party committee.

Perhaps if that happened over here, then the OBR would be lead by people with a less rose-tinted view of the British economic outlook...

Jeff

The Office for Budget Responsibility‘s GDP growth forecasts are way too optimistic

[Iron]

Another interview with Jim Rogers: http://www.cnbc.com/id/43328325

Jeff

[rubysglory]

Is he related to Buck ?
They could almost be twins - or the same !

rg

[Euler]

I think the flaw in doomsday thinking is that people would have to not care or not do anything about things. In reality it's a bit different.

However, debt levels are way too high. I sort of agree with the right leaning doctrine that government should be minimal, it's so painful to see the public sector so high as even a hint of a cut and a strike is called. Meanwhile in the private sector all sorts of carnage is taking place. Over time the public sector becomes more expensive and less efficient as it ends up being run for continuity than value for money. That needs sorting along with debt levels and the two are linked!