Boom Bust Season 1 Episode 55 Jim Rogers: the Serious Problems in Emerging Markets �Are Going to Get Worse'

In season 1 episode 55 of Boom Bust, renowned investor Jim Rogers speaks about the worsening problems in emerging markets. Rogers shares his insights on the challenges faced by emerging market economies, including high debt levels and currency devaluation. He also discusses the impact of global trade tensions and the policies of major central banks.

Rogers argues that the problems in emerging markets are not new, but rather have been building up for many years. He highlights the fact that many emerging market economies are heavily dependent on commodity exports, which have suffered due to oversupply and slowing demand from major importers such as China. This has led to falling commodity prices and weakened currencies, which in turn have made it more difficult for these economies to service their debts.

Rogers also points out that many emerging market economies have been borrowing heavily in foreign currencies, exposing them to exchange rate risk. As the US Federal Reserve continues to raise interest rates and tighten monetary policy, the cost of borrowing in US dollars is likely to increase, making it even harder for these economies to service their debts. This could lead to more defaults and a potential broader financial crisis in emerging markets.

In addition to external factors, Rogers argues that many emerging markets are plagued by internal issues such as corruption and political instability. He notes that in some countries, such as Venezuela, the situation has become so dire that significant reforms will be needed to turn things around. However, he also suggests that these challenges could present opportunities for savvy investors who are able to identify quality investments in these markets.

Overall, Rogers' message is clear: the problems in emerging markets are going to get worse before they get better. However, he remains optimistic about the long-term prospects for these economies and believes that they will eventually overcome their current challenges. For investors who are willing to do their research and take a long-term view, there are opportunities to profit from this trend.