“In 1980, India was much, much more successful than China. Since then, China’s run circles around them. Did you do it to India, did I do it to India? No. The Indians did it to themselves. [They’re] full of bureaucracy, full of crazy regulations and controls. Their currency’s not convertible — it’s a mess."
Jim Rogers thinks there is a crisis coming in some emerging economies. In India, where GDP growth is at a 10-year low, Rogers thinks the "wolf is now at the door in India."
On the other hand, he thinks investors need to be prepared to take advantage of the problems in China. Some of these areas include agriculture, pollution, tourism, and China's railroad system. When Chinese tourism expands "they're going to change the name of Madison Avenue to China Avenue.," he said. - Source, Business Insider: http://www.businessinsider.com/jim-rogers-the-wolf-is-at-the-door-in-india-2013-9
Jim Rogers stopped by for an interview with RT News and talked about American exceptionalism. That’s a favorite term that is tossed around by politicians and average citizens alike. Jim Rogers agrees. We are an exceptional nation. We are the largest debtor nation in the world, and that’s what makes us exceptional. Sarcasm much Jim?
During the interview he notes that the U.S. has been can kicking its fiscal responsibility for 60 years, so the recent political circus is nothing new. With each passing year, the country slides further into debt, and Rogers warns that it will be solved one way or the other.
In the end, the compromise is already in. The brinkmanship must be played by the GOP for their base. Of course, walking away empty handed this time is sure to gin up primary challenges for a host of House and Senate members. The political miscalculations by the GOP on this fight are incalculable.
Jim Rogers in the interview says that while the supposed fix may be announced, the world knows that nothing is in fact fixed, and the only way this ends is badly. Obviously he’s not the most optimistic guy at the dinner party. But, he is right. Whatever comes out of the Senate is a band aid so we can have the exact same fight early next year.
If the two sides have not agreed on a budget since 2009, what makes everyone think they are going to see the proverbial light and start agreeing now?
This is the first time in recorded history that we have all the major central banks, all the major governments actively debasing their currencies. Japan has said it will print unlimited amounts of money. So Ben Bernanke said, "Wait a minute, we can throw in a trillion dollars a year." And the Europeans said they'll do "whatever it takes." There's a gigantic ocean of liquidity, and the people getting that liquidity are having a wonderful time. But it's totally artificial, and it's going to end badly when it ends, I assure you.
Singapore has the best of everything—great education, great health care, everything works here. It's been an astonishing success story over the past 40 years. We're very pleased here.
When I was selling my New York house, I almost backed out; I just couldn't bear the thought of leaving. But now I'm very happy here. I fly to New York and I realize I'm in a Third World airport. Then I get into a Third World taxi onto a Third World highway. The difference now just slaps me in the face. New York is a wonderful place, with the people and the vibrancy, but I can find the same vibrancy, if not more, in Asia.
It's been 17 years since the last time the US government partially ceased its work - but it's actually the 18th time in US history it's taking a so called 'spending gap'. In 1977, the government was shut down three times in as many months.
There may be progress in US over the government shutdown and debt ceiling, but it's not all good. The deal being talked about now wouldn't resolve the crisis - but rather kick the can down the road setting the scene for another budget showdown early next year. For more on this RT talks to investor Jim Rogers.
"I don't see any reason to rush out and sell stocks now, because of these artificial currents which are taking place," he said. "I'm not buying U.S. shares at the moment, but I'm not shorting either, because I am concerned this may turn into a huge bubble. So I'm sitting and watching."
So what would persuade Rogers to sell?
"If the market doubles in the next six or eight months, which it's done in the past, then I'd have to start thinking about selling short," Rogers said. But until then, "because of the uncertainty—at least in my mind—I'm not doing anything."
"It is only a matter of time before the US stock market runs into devastating problems due to the Fed QE program", Jim Rogers warned during an interview on CNBC Singapore, adding that the prevalance of similar stimulative pograms around the world merely exacerbates the probability and size of a fall. His simple message to US investors - "Be Careful."
On US Equities:
"We may well have had a big, big rally in the U.S. stock market, but it's not based on reality. I would encourage investors to know you're in a fool's paradise, be careful, and when people start singing praises, say, 'I've been to this party before, and I know know it's time to leave.'"
On A US Recession:
"First of all, throughout American history, we've always had slowdowns every four to six years. That means that sometime in the next couple of years - three years, maximum - we are going to have problems again, caused by whatever reason,"
On The Increasing Size Of The Problems:
"For instance, there was 2001 and 2002, and then 2007 and 2009 was much worse.
Well, the next time it's going to be worse still, because the level of debt is so, so, so much higher. Every country is increasing its debt at the same time."
On The Limits Of Central Banks:
"This is the first time in recorded history that we have every major central bank in the world printing money, so the world is floating on an artificial sea of liquidity.
"Somebody’s going to make a lot of money cleaning it up, now the Chinese government and the Chinese citizens know that it’s terribly filthy,” says Jim Rogers ”For the next 20 or 30 years, huge amounts of money are going to be spent, and therefore, profits made."
Throughout history when you print staggering amounts of money, it has always led to inflation. Now, you can have an inflationary boom, an inflationary feel-good period, but usually the politicians just keep printing. No politician is going to run on a platform, or could get elected on a platform of “we are going to have pain”, so they are going to continue to print money. You know as Mr Bernanke is doing, the BoJ, the Bank of England, the ECB. They all say the same thing. They are all doing the same thing. So they are going to continue to print money. Eventually of course what always happens is that inflation gets higher and higher and then the bubble pops and you have deflation and harder times. But between here and there is a long way, because they are not going to stop printing money. That’s all they know how to do. It’s the wrong thing, but it’s all they know to do.