December 11 2009: There is no recovery
Ilargi: Jim Rogers is right. There is no recovery in the American economy. Things have only gotten worse, and a lot too. Still, Rogers can’t help seeing the world through his own subjective eyes either, distorted by his age and his professional views. He makes money as an investor, and can’t imagine a world in which investors like him are not part of the landscape.Jim Rogers: "The idea you can solve a problem of too much debt and too much consumption with more consumption and more debt defies belief. I cannot believe that grown-ups would stand there and say that."
China of course has no genuine recovery either. Its exports are still falling, but its output rose 19.2%. In other words, the Chinese will have to buy their own products. Problem is, they don't feel like doing it.
Until then, to quote Jim Rogers once more, things will only get worse if the present "spend your way out of misery" gospel continues to rule our ways. Just look at how much more debt, most of which is owed to foreigners, the US has compared to a year ago. It runs in the trillions. In just one year.
