October 22, 2012

Jim Rogers: Capitalism is Dying in the West

Excerpt from the interview:

Depending on countries, politicians, central bankers are destroying capitalism. Some Asian countries are opening up more and more and they become more capitalism countries than USA.

Do you think capitalism can survive in the West?

In history great nations have created economies where people do whatever they can and governments are not so in control of the things. When everything gets matured and problems start, governments get more involved. When problems start, people look for someone to save, and then governments do more controls. All great nations when they reach a certain level of saturation and maturity, start to control more to prevent decline but that accelerates the decline. That is what is happening in USA.

The real credit was 15 years world saved huge amount because war and depression and eventually they started to spend 40-ies , after that people started investing, spending and consuming. It was pretty simple economics. It was historic circumstances.

Stagflation – Most of the world is already in it. Some statistics say it’s not the way, but we can’t rely on government statistics.

I hope the Chinese and Japanese conflict doesn’t evolve into a war. But even without these problems, the world is slowing down anyway.

Jim Rogers is an great investor, author and respected financial commentator. He is a regular guest on different TV programs like these of Barron's, FT, Wall Street Journal, New York Times, Fortune and CNBC. Rogers is the president of Rogers Holdings and Beeland Interests.