Legendary investor Jim Rogers predicts a severe global financial crisis as debt levels continue to rise

The co-founder of Soros Fund Management, a private investment business worth $5.61 billion, is pessimistic about the future of the United States due to the country’s mounting debt.

Rogers predicts that the country’s $32.47 trillion debt will manifest itself in the form of consistently high inflation and rising interest rates in the not-too-distant future.

“The last time this happened, was in the 1970s and 1980s, inflation was so terrible that interest rates on government bonds and paper reached 21%. Recent inflation has worsened.

The United States remained a creditor country until the year 1980. Today, the United States has more debt than any other country in recorded history. In other words, everything seems OK right now. The storm has subsided for the time being, but that won’t be the case for long.

This obligation must be met, and soon. More paper currency must be printed, and soon. Borrowing large sums of money leads to ever-increasing interest rates. Since so much currency has been created recently, inflation is certain to continue rising.”

The famed investor predicts that the next economic crisis will be the worst in our lifetime because of the country’s historically high debt levels.

“In 2008, we ran into some trouble. If there is another economic crisis, it will be the worst in my lifetime, and thus the worst in yours. Too much debt was a major issue back in 2008. Since 2009, global debt levels have risen dramatically. Because of the increased debt, the next financial crisis will be catastrophic.”

Rogers adds that the US government and the Fed won’t be equipped to deal with the next crisis effectively.

“They have no skills other than printing money. They’ll issue new currency. They may install extra safeguards. More safeguards will most likely be implemented. They’ve always had an attraction for that kind of stuff.”

In a recent analysis, the Congressional Budget Office (CBO) predicted that the national debt would exceed GDP over the next 30 years. The Congressional Budget Office projects that by 2053, the national debt would have increased to $143.895 trillion, or almost three times GDP.

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