Be Worried

Investor Jim Rogers has some sobering words on the future of the global economy. Even though the leading oil producers are working on price stabilisation, he warns another significant economic crash could be on the cards within a couple of years.

Oil prices spiked on Monday after Russia and Saudi Arabia agreed to work toward market stabilisation. The two countries are setting up a working group to help support prices, after the collapse in 2014.

RT: What can the two countries do to stabilise prices?

Jim Rogers: The Saudis have made it clear they don’t want to cut production and they are right, in my view. I am not Saudi Arabian so I can’t tell them what to do. The Russians want to cut production, that’s not what I would do. I would let the market play itself out. It is taking a while but the high-cost producers are closing down and going out of business. You are forcing the high-cost exploration to stop. There is no exploration. Exploration budgets are cut by ninety percent. This eventually means no oil supply, and the price goes through the roof again. Why would you sell your oil down at these prices if you could wait and sell it later?

RT: A lot of people are talking about a massive economic crash that is on the horizon. Is there any truth to that?

JR: You should be very worried. There is going to be a serious economic crisis in the next year or two. We all are going to pay a horrible price for the artificial money coming out of America and other central banks. We’re all going to have a huge problem. Be worried, be worried.

The statements, views and opinions expressed in this column are solely those of the author and do not necessarily represent those of RT.

Reprinted from RT News.

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