European Bailouts May Lead to Another World War

A continuation of bailouts in Europe could ultimately spark another world war, says international investor Jim Rogers. As an alternative, he recommends a combination of capitalism and socialism to weed out weak European banks and companies and to support the strong. “This is how we got into World War II,” Rogers tells Yahoo, referring to Europe’s handling of its financial crisis. Editor's Note: Google Banned This Video But You Can Watch it Here “Add debt, the situation gets worse, and eventually it just collapses. Then everybody is looking for scapegoats. Politicians blame foreigners, and we’re in World War II or World War whatever.” The Rogers solution: “Let the people who have failed, go bankrupt,” he says. “The banks and bondholders would lose money, but then you start over.” That’s classic capitalism, Rogers says. “Bailing out zombie companies and banks has never worked. Look at Japan." But free markets alone can’t solve the problem, Rogers says. Governments must help choose the winners and losers – and quickly. “If you wait two years from now, five years from now, when no government has any credibility and nobody will give you any more money, then it's finished. You better get yourself a rifle and head to Asia." But the prospect for Europe doing more than kicking the can down the road now looks bleak. Countries in the eurozone are split, with creditors like Germany continuing to focus on the need for austerity, while borrowers seek more assistance and want to focus on growth. Read more on Newsmax.com: Jim Rogers: European Bailouts May Lead to Another World War