Jim Rogers: Some European countries are 'bankrupt'

Investment guru Jim Rogers believes a number of countries in Western Europe are bankrupt or have serious liquidity problems and need to restructure their debt.

Rogers, who started the pioneering Quantum fund with George Soros in 1970, told CNBC action needs to be taken to tackle the serious problems in the West.

"You need to let Ireland go bankrupt. They are bankrupt, why should innocent Germans, Poles or anybody pay for mistakes made by Irish politicians," Rogers says.

The legendary investor says Greece is also insolvent, while Portugal has a liquidity problems. He also believes countries like Belgium, France and even the UK have various concerns.

Despite this, Rogers remains bullish on the single currency. "I'm long the euro and certainly I'm staying with it," he adds.

Rogers also warns inflation is starting to reappear across the globe and it could impact the stock market.

"Everybody knows that prices are going up," Rogers adds. "Prices are going up, that's called inflation and ultimately wages are going up too... anyway that's not good for stock markets."