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View Full Version : Britain will go bankrupt - learn Chinese and move to China, says investment guru


cresta10
30th Jan 2009, 07:50
When asked his advice for a young person growing up in Britain, Jim Rogers, former partner of George Soros and one of the world's most successful investors, is forthright. "Move to China; learn Chinese."

Mr Rogers warns that Britain will go bankrupt if the Government continues to follow its present policy of attempting to save the banks through subsidy and nationalisation.

He has sold all his sterling assets and has "no position" in sterling, but Mr Rogers reveals that he had been planning to short-sell sterling in the present financial crisis, before recent disparaging remarks about the pound's prospects from his own lips had put paid to those plans. "I should have kept my mouth shut."

Mr Rogers had in mind a repeat of his previous coup, when he and Mr Soros's Quantum Fund famously "broke" the Bank of England in 1992, when sterling was forced out of the European exchange rate mechanism, costing UK taxpayers $1bn and making Mr Soros and Mr Rogers correspondingly wealthier.

Sterling is at a 10-year low against the dollar, and Mr Rogers is confident that it will fall to below its previous nadirs, though he has "no idea" where that floor may eventually be. His message is blunt: we used to have North Sea oil and the City of London, but now "you don't have anything to sell... it's a terrible shame".

Mr Rogers is still more forthright in his advice to the Prime Minister, who he urges to resign, but not before abolishing the Bank of England. "They are the ones printing all this money," he said. "Central bankers are not gods or geniuses; why does anyone think they are?"

The US Federal Reserve, Mr Rogers thinks, is also on the road to bankruptcy, and he points out that the US has already had three central banks in its history. Instead, the Singapore-based billionaire urges the UK authorities to take the radical step of allowing the commercial banks to fail. He cites the example of South Korea, Russia and other nations where such financial violence was followed by a renewed burst of growth and prosperity, in a relatively short space of time.

In the overwhelmingly likely event of Mervyn King and Gordon Brown ignoring Mr Rogers' advice, the "crushing" burden of debt and of taxation to service that debt will bankrupt the UK, "technically or de facto", with a "terrible" inflation to follow.

A colourful figure, Mr Rogers was born in Alabama and educated at Yale and Oxford. He has made it into Guinness World Records for some of his epic motorcycle journeys. He began collaborating with George Soros in the Seventies and more recently has specialised in commodities. In 2007, at the age of 63, he drew some attention for his decision to move from New York to Singapore, declaring that "moving to Asia now is like moving to New York City in 1907".

Britain will go bankrupt - learn Chinese and move to China, says investment guru - Local & National, News - Belfasttelegraph.co.uk (http://www.belfasttelegraph.co.uk/news/local-national/britain-will-go-bankrupt--learn-chinese-and-move-to-china-says-investment-guru-14152393.html)

Blacksheep
30th Jan 2009, 09:51
...reveals that he had been planning to short-sell sterling More financial spivvery... :rolleyes:

We need to get hold of all these financial spivs, line them up against a wall and use them for target practice. That's all they're fit for.

I was watching the news last night and during the obligatory visit to the World Economic Forum, along comes the CEO of a well known international insurance company with wise words of wisdom. This is another specimen, whose organization went on a buying spree during the last decade of the twentieth century, snapping up investment funds. Once they had control of a large amount of shares they did a Soros style short selling job, eliminating the savings of a lot of small people, then sold the remains of the funds to another bunch of spivs.

Instead of handing out advice at a World Economic Forum, this specimen would be more properly viewing the world through the bars of a prison cell. Careful and Prudential? My *rse. :ugh:

TBirdFrank
30th Jan 2009, 11:47
And these guys are wheeled out as paragons of authority, whilst simultaneously both boasting about previous fraudulent activity, and recent planning for more.

If you believe them you are welcome to their consequences!

bnt
30th Jan 2009, 13:51
Maybe. Then, 2-3 years down the line, China goes bankrupt, so what then? Learn Portuguese and move to Brazil? You can't keep chasing prosperity around the world.

Nor does it make sense to follow the herd, because the herd flattens whatever it runs over. A few years ago it was cheaper for companies to outsource their call centres to Bangalore, so they poured money in to Bangalore. Anyone care to guess what that did to the cost of doing business in Bangalore? :hmm:

GOLF_BRAVO_ZULU
30th Jan 2009, 20:22
I haven't forgotten 16 September 1992, stuck in the middle of Romania with only "Lire Sterline" in my pocket. After his jolly jape then, I wouldn't p**s on Soros and his chums if they were on fire. He represents the smelly side of capitalism and taints it simply by breathing.

airship
30th Jan 2009, 20:57
Hark?! The little Britons cry... :rolleyes:

Over many centuries, individual Britons have ventured into the unknown. They learned how to communicate in local languages: Swahili, Hindi, Malayalam, Cantonese or whatever, before ensuring the locals could finally communicate in English. Some of them even married natives (result = airship?!).

Jeez, the British taxpayer spends £ billions on education every year only for graduates to go work for McDonalds. So why not spend a small portion of it on learning to speak Chinese?! We might not reconquer an empire but at least Chinese-speaking Brits will be better placed than say, non Chinese-speaking Europeans (before GB is obliged to come crying into the arms of the EU and the €uro...) :p

Altogether now folks: "Kong Hee Fat Chow"' - Happy (Chinese) New Year...?!

Richard Taylor
30th Jan 2009, 21:00
After several pints I can speak Chinese quite fluently. :\

airship
30th Jan 2009, 21:09
2 x no. 41 (BBQ spare ribs) and 2 x no. 20 (fried rice) please. And make it snappy! Ohmegod,IthinkI'mgonnabesick! Heya, mister, you pay in advance OK?! ;)

throw a dyce
30th Jan 2009, 21:16
It's Kong Hei Fat Choi,for Happy New Year.Ayaaaah.

Son of the Bottle
30th Jan 2009, 21:25
I think this comes under the heading of shooting the messenger.

Soros et al wouldn't have been able to do what they did if Major & Lamont hadn't kept trying to defy the market by bumping up interest rates in order to keep within the constraints of the ERM.

Rather a similar situation to what's occurring now, in fact. Broon and his cronies are trying to shore up the UK banking sector at grave cost to the future prosperity of the country. The market can see that it's doomed to failure, hence the current run on the pound.

Time to empty your bank account & stuff it under the mattress, I reckon

OFSO
31st Jan 2009, 06:47
Chinese prosperity is built on exports (if you don't believe that, check where most of your computer was made).

If sterling goes bust and a few more currencies drop enough so people reduce their spending, China's exports drop.

Then China also goes down the tubes....

Note: God invented the TV weather-forecast man to make Economists look good.

Dr Jekyll
31st Jan 2009, 09:15
I was watching the news last night and during the obligatory visit to the World Economic Forum, along comes the CEO of a well known international insurance company with wise words of wisdom. This is another specimen, whose organization went on a buying spree during the last decade of the twentieth century, snapping up investment funds. Once they had control of a large amount of shares they did a Soros style short selling job, eliminating the savings of a lot of small people, then sold the remains of the funds to another bunch of spivs.

So they buy funds that they think will rise in value, then sell them when they think they will fall. What exactly do you expect an insurance company to do with it's customers money?

Effluent Man
31st Jan 2009, 12:56
Latest news..Soros buying Sterling.

frostbite
31st Jan 2009, 14:40
That could explain why the GBP has gained somewhat over the last couple of days.

airfoilmod
31st Jan 2009, 15:14
So a "surprise" buy by Soros > He knows nitwits will jump up. He's playing the pump 'n dump. When one can leverage a market with nothing other than rumour, one makes bundles of money. More money is made playing the "don't" (down) side than the up. Except this time, the up is a long way ahead. "Saving" the Banks is what makes Soros wealthy. Had they failed, Soros is "foreclosed" from preying on the little "taxpayers to be".
Besides, the "money" he is making is worth progressively less and less, so he plunders more diluted "money". (If that's a consolation).

AF (just sayin')

Metro man
1st Feb 2009, 07:55
Public pensions rocket by £11.2bn - Times Online (http://business.timesonline.co.uk/tol/business/economics/article5627647.ece)


CIVIL SERVANTS and teachers racked up pension benefits last year that will cost the taxpayer another £11.2 billion - a 33% increase on the previous year.

The latest evidence of the huge cost of public sector pensions comes as millions of private sector workers have seen their retirement benefits decimated by collapsing global stock markets.

Civil servants’ gold-plated pension pots grew by £4.5 billion in 2007-8, compared with £3.5 billion the year before.

In the same year the combined pots of teachers grew by £6.7 billion, compared with £4.9 billion in 2006-7.

Nick Silver, chief actuary at Callund Consulting, said: “The cost of paying the pensions of current civil servants has gone up by £1 billion in a single year and it’s not obvious why - government accounts do not give a proper explanation of why.”

The vast majority of current teachers will enjoy a final-salary pension scheme from the retirement age of 60. Only teachers who have started working since January 2007 will have to work until their 65th birthday.

Similarly, almost all serving civil servants can retire at 60 on a lucrative final-salary scheme.

However, in the past five years, most private sector employers have acknowledged that final-salary schemes have become too expensive because of greater longevity and dwindling investment returns.

Most private sector workers now contribute to defined contribution schemes that pay out much less than final-salary pensions.

Teachers pay 6.4% of their salary towards their pension, while the UK’s 577,000 civil servants rarely contribute more than 3.5% of their salary.

Pension experts maintain that the contributions made by public sector workers do not reflect the true costs incurred by their retirement schemes.

“Civil servants do make contributions, but their contributions do not count for anything like the true cost of their pension – the bulk of which will be paid for by generations of future taxpayers,” said Silver.

Philip Hammond, the shadow chief secretary to the Treasury, said: “These huge unfunded public sector pension costs are storing up yet more problems for the future at a time when Britain is already facinga £1 trillion debt mountain.

“We urgently need more transparency in accounting for public sector pensions, so taxpayers understand the true costs and civil servants can see just how valuable their retirement benefits are.”

Of course those who caused the mess have nothing to worry about, their pensions are guaranteed, more money needed for them ? Easy, just raise taxes. The politicians look after the bureaucrats who run things for them and the welfare recipients who vote for them. In the process bleeding dry the law abiding, productive people who are expected to pay up and not complain.

What happens when there is no one left doing productive work to tax ?