World Economy Faces Slow Growth, Says Jim Rogers
by Justin Rowlatt
The question on a lot of people’s minds is the state of the global economy. Some are predicting a return to recession and at best others believe we will see a period of stagnation.
With global stock markets taking massive hits in the last few months over fears about the eurozone and American economies, what can be done to ease these concerns?
The American investor and financial commentator Jim Rogers says the world is going through a historic shift that will see a period of slow growth. However, he is not worried.
On the BBC World Service’s Business Daily, Justin Rowlatt began by asking Mr Rogers how long he expected the US economy, the engine of global growth, to stagnate for?
Transcript of the interview:
Jim Rogers: I hope it’s only one decade of loss that we lose in America. Japan has had two lost decades now, as you probably know, and America is in much, much, much worse shape than Japan.
America is the largest debtor nation not just in the world, Justin, in the history of the world. We have serious problems. They are not addressing the problems in America. So I hope it’s only one or two decades we lose. It may be three or four.
Justin Rowlatt: So what do American politicians need to do?
Jim Rogers: First they need to get a little education about the rest of the world and about their own economic situation and then we have to change our tax code dramatically. We have to cut spending with a chainsaw; not with an axe, with a chainsaw.
We got troops stationed in over 120 countries around the world. I mean the politicians have sent them there you know, and those military establishments are making things worse for America, not better. We got to change our total way of thinking just as the British did when the British started facing reality.