Jim Rogers: How To Survive The Economic Meltdown

In this video we dig a little bit deeper into the American economy and how Jim Rogers see's it. It's all based around Rogers interview with Stansberry research linked below!

Here's the interview that I refer to in the video: https://www.youtube.com/watch?v=txZpbZTzlyg

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Jim Rogers, I don’t know how many of you know who he is, he’s a legendary American investor and co-founder of the Quantum Fund and Soros Fund Management. If any of you have been listening to his views on the market recently you will know that he’s not exactly the most happy guy when it comes to the American economy and share market.

In-fact he said in a recent interview “I expect that we’re going to have a very serious Bear market and a very bad economy for a while”.
He got asked will it be the next great depression? He said “I’m not sure but I suspect it’s going to be the worst in my lifetime”.

So you know I’m an American investor and I hear those words come out of his mouth, and that doesn’t make me feel great to put it mildly. What I’m going to do in this video is I’m going to go over the reasons why Jim Rogers is predicting such bad economic conditions and then show you his thoughts on how to survive what might potentially be to come…

So one of the biggest reasons why rough economic conditions could be ahead, is because of the mounting debt problem that America is facing. As Rogers said “The united states is the largest debtor nation in the world by many factors and we keep adding staggering amounts of money to our debt. This has always ended badly.”
“2008 we had problems because of too much debt, since 2008 the debt has skyrocketed!”. Let me show you what Rogers is getting at…

So In 2008 we had around $10 trillion dollars of debt. Even for a big country like the United States of America this is a lot of money owed. But ok, I don’t know how good your history is, we’re not going back too far, but in 2008 we had the great recession. 2007 to 2009 to be more precise.

What happened then was businesses started failing, consumption started declining, banks were in big trouble and a lot of people needed a lot of money.

So the federal reserve says no worries, that’s totally fine, I’ve got this problem sorted. They heat up their figurative money printer, and they print money by the bucket load. They give it out to banks, businesses, to people to try heat up the economy again.

And it works, yah. June 2009 we’re no longer in a recession. But the thing that people don’t talk about, is the debt. Oh don’t worry about that, we don’t have to pay it back, yet… But at some point, debts must be paid.

And if we take a look at what happened after 2008, 2009, national debt shot up like a rocket. As you can see. $10 trillion, $11.9, $13.5, 2012 it get’s to $16 trillion, and now that debt pile has soared to $26.9 trillion. So you go from thinking $10 trillion in 2008 was bad. A dozen or so years later, that rises to almost triple the amount.

And this is what Jim Rogers is talking about, when he says the USA has a debt problem. There’s only so much that you can keep accumulating debt before you have to pay that off.

And if your answer is well we can just pay that off by printing money, than everything will be sorted. If only printing money had no consequences. Jim Roger got asked this question recently, this is what he said…

“(printing money to pay off debt) is probably what will wind up happening. As it has often happened in history. Whenever there is a problem in the world people look around for an easy way to solve the problem. Once open a time there was a guy named mr Marx. Mr Marx had a wonderful theory and many people accepted it and tried it for a long time. No body believes in Mr Marx anymore, we found that it didn’t’ work. But right now there’s another one, called more money today MMT. Give me some money, more money free money. Well everybody loves it. Many people are starting to try it. We’re going to find easy ways, politicians always find easy ways, will it work in the long-term. As I said, being a young person in America right now is not a good thing to be!...

The proper way to pay off debt is by earning more. Aka growing the economy in terms of GDP.

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DISCLAIMER: It's important to note that I am not a financial adviser and you should do your own research when picking stocks to invest in. These are just some of my viewpoints, by no means would I recommend watching one YouTube video and then immediately buying that stock. This video was made for educational and entertainment purposes only. Consult your financial adviser.