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'the Uk Will Need A Bailout Soon': Jim Rogers

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http://www.cnbc.com/id/42926502

Britain isn't cutting its structural deficit by enough or doing it quickly enough and may need a bailout from its European partners, investor Jim Rogers told CNBC.

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Jim Rogers

But UK-based analysts disputed this view, saying the austerity measures were enough.

Rogers said the UK coalition government needed to go further in order to avoid financial catastrophe.

"They [the government] are not doing it. They are saying they are doing it but they are not. They are saving £1 billion ($1.6 billion) here or there but they are not doing what they really need to and I'm not sure the government would survive the kind of pain that is really required," he said.

"How can the UK ever repay the debt that is continually rising? The UK will need a bailout soon. You have the advantage that your debt is longer term but let's assume the government keep to these austerity plans or really put them in place people will start to complain," Rogers explained.

"The government will begin to lose by-elections and the government could fall, then what?"

His comments came as the British electorate went to the polls for the first time since last year's general election, which resulted in a coalition government of the Conservative party and Liberal Democrats and a program of public spending cuts which began in earnest in March.

Elections were being held for the devolved national assemblies of Scotland, Wales and Northern Ireland as well as over 200 local councils.

A national referendum to decide on whether to change the voting system from its current first past the post, (one person, one vote) to a form of proportional representation called the Alternative Vote, as used in Australia, also took place on Thursday.

The referendum was the first national referendum since 1973 when the UK voted on whether to remain a member of the European Economic Community (EEC).

It was one of the Conservative party's concessions to their Liberal Democrat partners during last year's coalition negotiations following the general election.

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Edited by getknk

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I’m not sure the government would survive the kind of pain that is really required

He's spot on with that.

Rogers is usually very negative about the UK's prospects, so there's nothing too surprising about these comments.

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He's spot on with that.

Rogers is usually very negative about the UK's prospects, so there's nothing too surprising about these comments.

Agreed.

So, we have a coalition about to fall apart, the economy in tatters with job losses and repo's and a snap election.

Labour govt anyone?

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It doesn't take a financial wizard like Rogers to tell of Britain's slow decline.

We are running out of North Sea oil and gas, and have been net energy importers for almost decade. That is 100% fact.

The 'austerity' of pre oil boom Britain is coming back, and it will not go away sadly.

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"How can the UK ever repay the debt that is continually rising? The UK will need a bailout soon. You have the advantage that your debt is longer term but let's assume the government keep to these austerity plans or really put them in place people will start to complain," Rogers explained.

Some one needs to tell Jim, in the modern economic paradigm no one ever pays the debt off. Borrowing money and paying it back what sort of heretic comment is that?

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http://www.cnbc.com/id/42926502

Read more in the link

Ah the truth, spending is rising every year. The total level of government spending is not being “cut” at all and is rising £40bn over the parliament. Always amazed how everyone buys the “austerity” line when Osborne is doing nothing of the sort. I suppose “increasing spending very slowly” does not have the same ring to it.

By bailout I assume he means more QE. Monetize a few more hundred £ Billion. No problem if a loaf of bread costs £20 in 5 years.

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Agreed.

So, we have a coalition about to fall apart, the economy in tatters with job losses and repo's and a snap election.

Labour govt anyone?

Labour only know how to spend, spend, spend. How come after every administration since 1924 they have left office with much larger deficits? They do not know the difference between spending and investment. They want to be kind, but so often it turns cruel like now.

Jim Rogers is right! There is no way that the current cuts will reduce the month on month deficit in time before the national debt is too high to service anyway. Over a £trillion already and mounting. I have been saying it was near impossible to cut enough for along time and on this forum too. And if he is right, then why on earth should we be paying/adding to your own debt by contributing to Greece and Portugals bail outs?

The £ would plummet against the US dollar if they were not themselves in much the same mire. At least their housing market is adjusting sensibly.....ours is still edging down a gentle slope towards the cliff....

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Nice to see this report as I'm sick and tired of hearing about all this austerity and cuts and seeing nothing of the sort.

George Osborne's "austerity" is complete horse shit.

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Why does sterling rise against the US dollar when he does this?

Jan 2009 "Sell your sterling" £1 = $1.39 then a few months later £1 = $1.65

http://www.independent.co.uk/news/business/news/jim-rogers-sell-any-sterling-you-might-have-its-finished-1452384.html

July 2010 "I have no UK investments" £1 = $1.51 then a few months later £1 = $1.67

http://www.telegraph.co.uk/finance/personalfinance/investing/7874935/Jim-Rogers-I-dont-have-investments-in-the-UK.html

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Why does sterling rise against the US dollar when he does this?

Jan 2009 "Sell your sterling" £1 = $1.39 then a few months later £1 = $1.65

http://www.independent.co.uk/news/business/news/jim-rogers-sell-any-sterling-you-might-have-its-finished-1452384.html

July 2010 "I have no UK investments" £1 = $1.51 then a few months later £1 = $1.67

http://www.telegraph.co.uk/finance/personalfinance/investing/7874935/Jim-Rogers-I-dont-have-investments-in-the-UK.html

Ive never seen Realist Bear and Jim Rogers in the same room together

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The UK will need a bailout soon

Goody Goody. We desperately need to redistribute some of the money. Hopefully a Bailout would help 'flush' out some of the misallocated funds.

According to Tainter's Collapse of Complex Societies, societies become more complex as they try to solve problems.

When a society confronts a "problem," such as a shortage of energy, or difficulty in gaining access to it, it tends to create new layers of bureaucracy, infrastructure, or social class to address the challenge.

Tainter, who first identifies seventeen examples of rapid collapse of societies, applies his model to three case studies: The Western Roman Empire, the Maya civilization, and the Chaco culture.

As the Roman Empire grew, the cost of maintaining communications, garrisons, civil government, etc. grew with it.

Eventually, this cost grew so great that any new challenges such as invasions and crop failures could not be solved by the acquisition of more territory.

Intense, authoritarian efforts to maintain cohesion by Domitian and Constantine the Great only led to an ever greater strain on the population.

We often assume that the collapse of the western Roman Empire was a catastrophe for everyone involved.

Tainter points out that it can be seen as a very rational preference of ordinary individuals at the time, many of whom were actually better off.

Average individuals may have benefited because they no longer had to invest in the burdensome complexity of empire.

In Tainter's view, while invasions, crop failures, disease or environmental degradation may be the apparent causes of societal collapse, the ultimate cause is an economic one, inherent in the structure of society rather than in external shocks which may batter them:

Finally, Tainter musters modern statistics to show that marginal returns on investments in energy, education and technological innovation are diminishing today.

The globalised modern world is subject to many of the same stresses that brought older societies to ruin.

Edited by Dan1

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Maybe you aren't seeing any cuts in the south, but we've had plenty of services cut up here

in the north, quite ferociously.

..that's to allow the councils to retain top jobs and salaries ...the noveaux riche at your expense....who needs services as long as you have a well paid council...... :rolleyes:

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Maybe you aren't seeing any cuts in the south, but we've had plenty of services cut up here

in the north, quite ferociously.

They are not cuts, they are an excercise in redistribution. The numbers prove that the funds saved by reducing public employees are more than compensated by other forms of expenditure, I suspect large contrats handed to friends of the party.

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Ah the truth, spending is rising every year. The total level of government spending is not being “cut” at all and is rising £40bn over the parliament. Always amazed how everyone buys the “austerity” line when Osborne is doing nothing of the sort. I suppose “increasing spending very slowly” does not have the same ring to it.

Well the fact is many people are losing their jobs because spending has been slowed. So on the ground thats what people see and associate with "austerity".

Is spending increasing in real terms? I don't think it is in the NHS for example. So even though spending increases, in practice they have to do the same with less (or in reality less with less).

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STRUCTURAL deficit. Now theres a term the politicians never mention anymore.

Remember when snot gobbler and liebour were borrowing when the good times were rolling. I guess that would be the structural one.

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Read more in the link

I'll pass thanks. It's his usual drivel.

Perhaps he's still waiting for his shorts on cable at 1.36 to pay out. :lol:

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Some one needs to tell Jim, in the modern economic paradigm no one ever pays the debt off. Borrowing money and paying it back what sort of heretic comment is that?

That's actually true.

What they intend to do is rebalance. That implies it won't be a bailout, it will be more state issued money to balance the credit overhang.

People will call the inflation "austerity", but in fact the tax burden needs to remain to preserve confidence in fiat.

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Maybe you aren't seeing any cuts in the south, but we've had plenty of services cut up here

in the north, quite ferociously.

That's labour councils for you!

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Things were so much better under Labour, lots of public sector jobs, rising house prices, new schools and hospitals. All we have had under the tories is tax increases, rising prices and job cuts. The sooner we have a Labour government back in the better. Anyway what is this deficit - debt thingy cos I am sick and tired of hearing about it.

+1

How selfish those tories keeping all the public money from everyone.

Coalition to splinter

Labour to win election

Labour to spend

Bond vigilantes to strike

Fun starts

People realise their mistake

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+1

How selfish those tories keeping all the public money from everyone.

Coalition to splinter

Labour to win election

Labour to spend

Bond vigilantes to strike

Fun starts

People vote for more labour or something even more extremist.

Fixed.

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  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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