“The U.K. is finished,” said, Tuesday morning, Jim Rogers (wiki), Chairman of Singapore-based Rogers Holding and old Quantum found partner of George Soros (wiki), while advocating aggressive selling of the sterling and U.K. shares. Bloomberg quotes the bow tie-clad forecaster as saying that he “would urge you to sell any sterling you might have. It’s finished. I hate to say it, but I would not put any money in the U.K.” Mr. Rogers did not elaborate on what exactly he meant by “finished”. Empirical evidence however does indicate that the British economy has lost in recent years all its competitive constituents: both tourism and financial services.
Tourism accounts for 12% of London’s Gross Added Value and for 15% of its workforce. One quarter of Europe’s 500 largest companies are headquartered in London; by last count, 185 international banks and 225 global securities companies were based in the City, along with 60 major hedge funds. In the ongoing global recession, both tourism and financial sectors are undergoing a substantive and painful contraction.
But England isn’t the only country trashed by Rogers. Reuters reports Rogers accusing the United States of a systematic effort to devaluate the dollar by “turning on the printing presses.” It’s hard to argue with that and he went on to say that “The idea that you can fix a period of excess borrowing and excess consumption by more borrowing and more consumption to me is just ludicrous.”
He reiterated his bullishness on China’s long-term future even though that market has been significantly hammered of late.