In this video featuring Commodity Funds Jim Rogers with Max Keiser, they discuss that the debt in Eastern Europe is certainly going to swamp the banks in Western Europe. There is going to be a lot of civil unrest and change of governments all over the world. Loans were taken out in Japanese Yen because the interest rate was only 1%. But they didn’t count on the Yen strengthening against the western currencies. This has put them on the verge of bankruptcy.
The Austrian banks are in serious trouble. 70% of their loans are in central Europe, and that region is a complete disaster. The individuals at the banks are responsible. Just like the bankers in America thought that securitizing mortgages is a great idea. Everyone piled into the same boat, and now everyone has to pay the price. Banks and investment banks have gone bankrupt throughout history. There are plenty of patient competent people who have been waiting for this opportunity, but the governments are taking money away from them and giving it to the people who have failed.
Commodity Funds Jim Rogers says that poor people are suffering, but what we have got now is welfare for the rich. They are the ones who need to feel some pain. We shouldn’t bail out anybody. The world doesn’t have enough money for that. You are going to start to see governments collapsing if they try to bail out everyone.
The IMF probably won’t issue a new currency. They will probably sell off their gold and then fail themselves. They have been a complete disaster. They haven’t paid attention to their mandates for decades, and according to Commodity Funds Jim Rogers, that is going to bring a lot of pain upon all of us.
