Economy, Europe

UK, EU on brink of total breakup: Investment guru

Scotland, Northern Ireland may break off from UK after Brexit, causing 'disruptions,' says renowned investor Jim Rogers

Gokhan Kurtaran   | 20.12.2019
UK, EU on brink of total breakup: Investment guru

LONDON 

The U.K. and European project might be on the verge of breaking up while the world is heading towards one of the worst crises in a lifetime, said Jim Rogers, one of the world's best-known investment gurus.

"We're all going to have problems in the next couple of years for a variety of reasons. Too much debt, and too much easy money going on," Rogers told Anadolu Agency on Wednesday. 

Warning of potential disruptions if Scotland seeks independence from the U.K. in the aftermath of Brexit, Rogers noted that Northern Ireland might also consider leaving the U.K.

"Maybe you are seeing the end of the United Kingdom. Seeing history before your eyes," he added.

"The U.K. is extremely indebted. One of the most indebted nations in the world and when it starts breaking up, it could be a catastrophe. This island doesn't have a lot to sell to the rest of the world anymore," said Rogers.

Underlining that he had himself spent one of the best periods of his life in the U.K. and would be upset to see this gloomy scenario take place, he argued for the need to "face facts"

"What about the next year and year after?" Rogers asked.

Worst economic crisis is looming

Rogers stressed that similar problems would also apply to other countries in Europe as their leaders became more motivated to leave the bloc on the heels of the U.K.

"There will be politicians in Europe saying: 'This works. Leaving, breaking up my country', [...] Now, you are going to see more disruptions. Especially when things start going bad. We are going to have worst economic problems we had in my life time," said the 77-year old Rogers.

"Lots of people will be encouraged. It worked in the U.K. Some these [European] countries are in serious debt," he added.

Noting that the world would come face to face with a looming global economic crisis soon, he said: "Mr. Trump will do everything that he can do to win the election, even if that means spending a lot more money, cutting taxes -- whatever he can do he will do again to be reelected. He might be able to prolong it,

"The longer he prolongs it, the worst it's going to be. Next time we have a problem, you should be very worried," he said, warning that markets were likely in the midst of their last rise "for a while".

Turkey should move closer to Asia

Arguing that Turkey should draw nearer to Asia rather than the West, Rogers asserted that compared with western economies, considerably low indebted, dynamic, fast-growing Asian economies would drive the global economy following the aftermath of a possible future global economic crisis.

"In Asia, you have less debt, you still have a younger population, harder workers, you have more energy and drive so when we come out of all of this, Asia will continue the lead the way. The 21st century will be the century of Asia," he stressed.

It is a good thing "Turkey is part of Asia", he said, adding that this would help the country. "Move over to the right [of the map] to Asia."

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