Jim Rogers- Fund Managers can become farmers
Jim Rogers was recently interviewed by The Economic Times. Among the topics covered include the recent rally in stocks, the widening deficit and his recent comments on Sri Lanka. In this interview, Jim Rogers touches on a couple of commodities that he believes will do well in this economy. As investors push oil and gold, Jim Rogers is looking at other commodities such as Silver, Cotton and Natural Gas.
If US unemployment touches the 10%-mark, it would further impact retail sales. How bad could this be for Asia?
Lets pick on China for a minute. If you sell to Wal-Mart in the US and if you are a Chinese supplier you know there is a problem. And you are going to be suffering. Any company that deals with the West is going to have problems. On the other hand, companies that are in the water-treatment business in Asia will care less if the West disappears. They are too busy making money, too busy going to work everyday.
Throughout history, if you go to a place after the war ends you usually find everything as very cheap, everyone is demoralised, people are just depressed and there are enormous opportunities if you have energy.
In my view, investing in Sri Lanka in May 2009 is probably a better bet than Pakistan, Bangladesh, India or some of the other countries nearby. Lets hope the new Indian government does something. I have heard wonderful things from Indian politicians for 40 years.
If US unemployment touches the 10%-mark, it would further impact retail sales. How bad could this be for Asia?
Lets pick on China for a minute. If you sell to Wal-Mart in the US and if you are a Chinese supplier you know there is a problem. And you are going to be suffering. Any company that deals with the West is going to have problems. On the other hand, companies that are in the water-treatment business in Asia will care less if the West disappears. They are too busy making money, too busy going to work everyday.
They are doing many of the same mistakes now. Whats different this time is that we are printing huge amounts of money which they did not print at that time. So, we are going to have inflation this time.
Central banks all over the world have printed huge amounts of money, and the real economy is not strong enough for all this money to be absorbed so, its going into stocks and real assets such as commodities. Its a mistake what they are doing. Its giving short-term pleasure, but theres long-term pain as we are going to have much higher inflation, much higher interest rates and a worse economy down the road.
The American bond market is already beginning to go down dramatically as people realise that the American government has to sell huge amount of bonds, and secondly, there is going to be inflation, serious inflation, as it was always in the past when you had governments printing huge amounts of money.
Stocks are rising even as fiscal deficit is widening. Somewhere it has to snap
America could have. America just had an election. The guy was elected in November and he could have come in the beginning of a four-year term and said the guys before me were hopeless idiots. They ruined things. We have to solve this problem. We have to take some pains now. But dont worry, we will get through this pain, and in two to three years or four years, things would be fine. And he could have been re-elected.
In the 1930s, we had a huge stock market bubble which popped. And then politicians started making many mistakes. They became protectionist. They made solvent banks take over insolvent banks and then both banks failed in the end.
You recently said that you would invest in China and Sri Lanka but not in India. Arent you betting on the new government in India?
What do you do? No politically-elected government can afford so much pain, unemployment and hardships
Throughout history, if you go to a place after the war ends you usually find everything as very cheap, everyone is demoralised, people are just depressed and there are enormous opportunities if you have energy.
If the pain comes in 2010, 2011 or 2012, there will be nobody he can blame. Especially, if things go bad later, the opposition will say, wait a minute, 2009 looked good. The next guy is going to say you did it But you are right. Its very difficult for an elected government. You have a newly-elected government in India. Whenever you have a new government they can take some of the pain.
And rarely do they produce. Its not the first time that the Congress party has been in the power. If they mean it, Indias going to be one of the greatest development stories in the next 20 years. But I dont know if they mean it. - 23196
If US unemployment touches the 10%-mark, it would further impact retail sales. How bad could this be for Asia?
Lets pick on China for a minute. If you sell to Wal-Mart in the US and if you are a Chinese supplier you know there is a problem. And you are going to be suffering. Any company that deals with the West is going to have problems. On the other hand, companies that are in the water-treatment business in Asia will care less if the West disappears. They are too busy making money, too busy going to work everyday.
Throughout history, if you go to a place after the war ends you usually find everything as very cheap, everyone is demoralised, people are just depressed and there are enormous opportunities if you have energy.
In my view, investing in Sri Lanka in May 2009 is probably a better bet than Pakistan, Bangladesh, India or some of the other countries nearby. Lets hope the new Indian government does something. I have heard wonderful things from Indian politicians for 40 years.
If US unemployment touches the 10%-mark, it would further impact retail sales. How bad could this be for Asia?
Lets pick on China for a minute. If you sell to Wal-Mart in the US and if you are a Chinese supplier you know there is a problem. And you are going to be suffering. Any company that deals with the West is going to have problems. On the other hand, companies that are in the water-treatment business in Asia will care less if the West disappears. They are too busy making money, too busy going to work everyday.
They are doing many of the same mistakes now. Whats different this time is that we are printing huge amounts of money which they did not print at that time. So, we are going to have inflation this time.
Central banks all over the world have printed huge amounts of money, and the real economy is not strong enough for all this money to be absorbed so, its going into stocks and real assets such as commodities. Its a mistake what they are doing. Its giving short-term pleasure, but theres long-term pain as we are going to have much higher inflation, much higher interest rates and a worse economy down the road.
The American bond market is already beginning to go down dramatically as people realise that the American government has to sell huge amount of bonds, and secondly, there is going to be inflation, serious inflation, as it was always in the past when you had governments printing huge amounts of money.
Stocks are rising even as fiscal deficit is widening. Somewhere it has to snap
America could have. America just had an election. The guy was elected in November and he could have come in the beginning of a four-year term and said the guys before me were hopeless idiots. They ruined things. We have to solve this problem. We have to take some pains now. But dont worry, we will get through this pain, and in two to three years or four years, things would be fine. And he could have been re-elected.
In the 1930s, we had a huge stock market bubble which popped. And then politicians started making many mistakes. They became protectionist. They made solvent banks take over insolvent banks and then both banks failed in the end.
You recently said that you would invest in China and Sri Lanka but not in India. Arent you betting on the new government in India?
What do you do? No politically-elected government can afford so much pain, unemployment and hardships
Throughout history, if you go to a place after the war ends you usually find everything as very cheap, everyone is demoralised, people are just depressed and there are enormous opportunities if you have energy.
If the pain comes in 2010, 2011 or 2012, there will be nobody he can blame. Especially, if things go bad later, the opposition will say, wait a minute, 2009 looked good. The next guy is going to say you did it But you are right. Its very difficult for an elected government. You have a newly-elected government in India. Whenever you have a new government they can take some of the pain.
And rarely do they produce. Its not the first time that the Congress party has been in the power. If they mean it, Indias going to be one of the greatest development stories in the next 20 years. But I dont know if they mean it. - 23196
About the Author:
All Things Jim Rogers is a Jim Rogers Blog dedicated to tracking the latest Jim Rogers videos and interviews for the general public to enjoy.
posted by X - Men @ 1:01 AM
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