On Coming Riots, Recession & The Day Of Debt Reckoning - Jim Rogers

Greece's leftist leader says the bailout deal is dead. Greek stocks plummet to 20 year lows. The S&P 500 takes a plunge to a two-month low, rebounds to a one-month low. Fitch says greece leaving euro would be bearable while UBS legend Art Cashin explains how Greece could end up back on the drachma. Wow! The headlines went from elections to drachma in less than 48 hours. We told you Greece was a going to be a big deal. We speak to investor Jim Rogers about real solutions. And the Spanish government says it will bail out one of the country's largest banks after saying it wouldn't need to throw more money at the banking sector. Oops. They couldn't help themselves with trying to prop it up. With all of the can-kicking in Europe and the US, and the refusal to look at the debt overhang, where are countries headed? We have some cold hard empirical facts to show the toll it can take. We're talking a 25 percent hit to real GDP. And guess whose taking on Wall Street? Our show's producer Demetri Kofinas with host of the Keiser report Max Keiser rock out in a new video. Plus, a hearing on how to "end or mend" the Federal Reserve in Washington is the opportunity to hear what Jim Rogers thinks about reforming the Fed, joblessness, increasing reliance on US welfare programs and upcoming elections. Rogers weighs in with his predictions of economic turmoil in the next 2 - 3 years and entire decade, accompanied by riots in the US.
 

Backing up, yesterday, we talked about the political uncertainty in Greece in the 24 hours since the watershed national elections that have rocked not just Greece, but the entire Eurozone. It now appears even more likely that Greece will remain without a government until new elections can be held in about a month. The party that received the most votes, New Democracy, wasn't able to form a coalition. It's leader passed the baton to the party with the second most votes, Syriza, headed by the young and charismatic Alexis Tsipras. 

Tsipras has a herculean task ahead of him, because the political landscape has become so fragmented that forming a coalition would be an accomplishment of massive proportions, in and of itself. He has proposed five points that are the focus of his discussion with party leaders, one of which includes the immediate abolition of a law granting members of Greek parliament immunity from prosecution. This has been a long standing privilege for politicians in Greece.

Needless to say these are extraordinary times for Greece, and a true test of democracy in the country that made it a household name more than 2500 years ago. If the country is sent back to the voting boxes in a month, there is no reason to believe that the result will be any more homogenous. In fact, chances are that the electorate could grow more impatient, and more radicalized. Eurocrats in Brussels have already proven inept at managing the political, social and economic fallout in the peripheral countries that have been impacted most by this debt crisis. If these latest election results prove to be the straw that breaks the camel's back in Greece, they could portend similar results for other nations that find themselves in the same boat. Uncertainty abounds like never before. 

However, austerity is what gets a lot of the buzz these days. We speak about all of this with Jim Rogers, Investor and Author.


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