US will suffer worse than Turkiye in next financial crisis, says Jim Rogers, calling himself ‘a big fan of Turkiye ‘
In the midst of mounting concerns about a looming global debt crisis, an American investor and financial expert is voicing his optimism about Turkiye’s economic prospects.
Jim Rogers, often seen as an investment guru in international financial markets, stressed the country’s potential for robust trade.
“I am more optimistic about Turkiye than I am about many places,” he told Anadolu.
“As you know, your government now realizes that the currency has some value or should have some value. It will be good for Turkiye,you’re in a place in the world where trade could be very good for you,” he added.
The 81-year-old investor’s comments come at a time when advanced economies around the world are grappling with high levels of debt, sparking concerns of an impending global financial crisis.
Rogers specifically highlighted the precarious situation of the US, asserting that it is poised to face more severe economic challenges than Turkiye in the event of another crisis.
“The US is going to suffer worse than Turkiye the next time around, when economic problems come … I’m still a big fan of Turkiye,” he underlined.
‘We cannot live with inflation’
Rogers underlined that emerging economies are better-prepared for a possible global financial crisis, saying that “most emerging economies will not suffer as badly as the West because they haven’t gone up as much. “Some of them have the stock market in the US as their all-time highs.”
“And that’s true of many places. But in other countries, things have not been so exuberant. China’s down and its stock market has not been doing well at all. So, the emerging markets, as you put it, will not suffer as badly as the US, Japan, and some other countries,” he explained.
He also pointed out that advanced economies created the current high-inflation environment by continuing to print money, urging action to curb rising prices.
“They cause the problem because they cause interest rates to be zero, and then they lead to inflation, it lead to serious inflation. For now, we have to do something about it,” he said.
Future of UK economy
Rogers also expressed concern over the state of the British economy and increasing public debt.
“England has huge amounts of debt. It’s amazing how much it has built up in the last few years and it is going to have serious problems. When the recession comes, they will be worse because they left the EU.”
“The problems will be bad for everybody, including England,” he asserted.
Rogers also noted that governments of advanced economy sought to control cryptocurrencies, adding that cryptocurrencies created by central banks would amount to government-backed currencies.
He advised investors to put there money in what they knew best in the current economic environment.
“They should only invest in what I know, in my view,” said Rogers, adding that gold and silver have “always been ways to protect yourself.”
“I don’t see crypto money as being a way to protect yourself because most people and I do not know about crypto money. Everybody knows what gold is. Crypto money has been around for a few weeks.”
Trade wars get worse
On trade wars, Rogers believes they will worsen as Western economies deteriorate, with politicians blaming immigrants and foreigners.
“Politicians always blame other people. And when we have the (rising) prices, all governments are going to blame the foreigners. They will say, ‘It’s all because of the foreigners,’ and so strife will get worse. Controls will get worse. Trade wars will get worse.”
Rogers also warned of a substantial housing bubble in China and suggested that another bubble in the sector spanning the globe is reaching its end.
“Real estate bubble not just in China but in New Zealand, it was in Korea, a lot of places. Parts of America had a real estate bubble. So, when any bubble pops, it takes a while to clean it up.”
“This one is going to cause problems in many countries for a while,” he said, adding that while the world would “recover someday,” this will take longer in countries where the “bubble was the biggest.”
In the current global economic outlook, Rogers advised consumers to find ways to reduce their debt as much as possible.
He emphasized the need for caution in investment and suggested: “If you can afford it and know about farming, buy yourself a farm. Try to keep your debts as low as possible.”