Jim Rogers: “Karl Marx is Probably Dancing Somewhere”

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”Karl Marx is probably dancing somewhere,” he says with a grin. ”Because, in America right now, the government owns the automobile industry, the insurance industry, the mortgage industry and the banking industry. The government suddenly owns huge parts of the American economy – that’s what Karl Marx said he wanted, and he didn’t have to fire a shot.”

…And he sees a bleak future for any currency backed by massive debts. Top of his list of bad currencies is the once mighty greenback. For which, in great part, he blames the former US Federal Reserve chairman Alan Greenspan.

”In 1998, Greenspan bailed out Long Term Capital Management [the US hedge fund with over $US5 billion in debts], then he bailed Wall Street out again in 2001 because of the dotcom bubble – the bubble he caused because he kept printing money and bailing out everybody in sight.”

…”Greece is bankrupt,” he says, ”whether they acknowledge it or not. Greece should have been made to take its pain, otherwise it will never change. In five months, years or decades later we’re going to be having the same conversation, only worse.”

And of the euro zone’s latest bailout package? ”The idea that you can solve the problem of debt and consumption with more debt and consumption defies belief.”

…He may be one of the investment world’s best-known Sinophiles, but he’s not an apologist. ”Don’t think I have starry eyes about China. It will have a lot of setbacks along the way, as did America. Since the 19th century America’s had a horrible civil war, we had 15 depressions, we had periodic massacres in the street and, at times, very few human rights.

”Plato said in The Republic that the way societies revolve is they go from dictatorship to oligarchy, to democracy, to chaos and back to dictatorship.” China, according to Rogers, is in the early stages of oligarchy. And, America, if it’s not careful, is heading for chaos.

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