Jim Rogers, chairman of Rogers Holdings and co-founder of the legendary Quantum Fund, said that the next financial crash could be even worse than what we saw this year.
“This certainly has been the worst in my lifetime. We’ve had a huge rally because governments everywhere have printed and spent staggering amounts of money, but it just means that the next time it’s going to be worse still,” Rogers told Kitco News.
While monetary stimulus may have provided short-term relief to the financial markets, the enormous amount of debt created as a result will create negative consequences for the economy in the long-term, Rogers said.
Rogers’ comments come as the S&P 500 climbed to new all-time highs on Wednesday, with gold prices falling on the trading day.
The S&P 500 last traded at 3,398.34 while spot gold traded at $1,966 an ounce.
The rally in equities since March was largely due to the debt build-up from quantitative easing, Rogers said.
“Six months ago the United States was the largest debtor nation in the history of the world. Never has anybody been so deep in debt. Since then the U.S. has increased its debt by trillions more. If you give me a few trillion dollars, I will show you a very, very good time,” he said.