8 May 2012 BBC Radio 4, Today Programme
Jim Rogers co-founder with George Soros of Quantum Fund
“The banks are bankrupt, Spain is bankrupt somebody has got to put up money or we have to acknowledge reality and declare bankruptcy.
“Our problems in Europe and in the world are not over yet. ...even the austerity plans have debts still rising in every country in Europe. That is not solving the problem that is making the problem worse. So whether it is this month because of the Socialists in France or next month because of a new election in Greece or next year because of German elections these problems are going to come back until somebody accepts reality, realises that these people have spent more money than they have and figure out a way to resolve the problem - either go bankrupt or cut spending with a chainsaw.
“The debts continue to go higher, nobody’s debt is going down. If you don’t face reality now you can face it in 2014 or 2016 and at that point nobody’s going to put up any money and at that point the chaos is going to be much, much worse. Somewhere along the line you run out of other people’s money.
“[Electorates] have rejected it. Everybody wants a free lunch. Somebody’s got to face this eventually. Eleven governments have been replaced in the last few years in Europe by electorates that have said we don’t like what’s going on. I don’t like it either. But the facts are these, governments for 30 or 40 years have been spending money they didn’t have. But eventually somebody’s got to come up with the money and there is no money any more.”
Hear it here www.bbc.co.uk/iplayer/b006qj9z/console at 16 minutes in.