US, EU Tensions To Grow, But Relations Will Not Break - Investor Rogers

WASHINGTON (UrduPoint News / Sputnik - 13th December, 2022) While the tensions between the United States and the EU nations will continue to rise amid growing prices in Europe, the transatlantic relations will not tumble, legendary investor Jim Rogers told Sputnik.

European partners are concerned about subsidies in the US Inflation Reduction Act (IRA), signed by President Joe Biden this summer, that some fear could spark a trade war.

"Well, Europeans are unhappy. Of course, when prices go up, people are unhappy," Rogers said when asked about the IRA. "Prices have been going up, and they will continue to go up, especially in Europe."

Rogers said in addition to prices going up are the problems with energy supplies the Europeans are facing.

"That's going to get worse and when those sorts of things happen, it causes realignments," Rogers said. "They don't know why they are having to suffer right now... and they're going to blame the US because it's easy to blame the US."

However, he added, although tensions may rise US relations with European partners will not end.

Rogers also said peace in Ukraine could help solve the tensions.

"When (there) is peace in Ukraine, grain prices would come down, Energy prices would come down," Rogers said. "There would be lots of oil and natural gas for Europe. And Europeans wouldn't be so unhappy," he said. "There will be a lot of optimism in the world, everywhere, and people will be very happy for a while."

The IRA commits $300 billion toward deficit reduction, in addition to providing approximately $370 billion in funding for energy security, including tax credits for US-made electric vehicles and subsidies to US consumers, and $80 billion to increase Internal Revenue Service tax enforcement and operations.

Rogers, the creator of the Rogers International Commodity Index (RICI), co-founded the world-renowned Quantum Fund and is currently the chairman of Rogers Holdings and Beeland Interests.

Rogers is also the author of several books including "Investment Biker," "Adventure Capitalist," and "Street Smarts," and has the Guinness World Record for most countries visited in a continuous journey by car, an adventure he undertook from 1999-2002.