, Jim Rogers Blog: December 2013

Monday, December 30, 2013

The Global Financial System is Headed for Collapse

The global financial system and economy aren't in good shape at all are are poised to implode, says international investor Jim Rogers, chairman of Rogers Holdings.

"Eventually, the whole world will collapse," he told CBC (Canadian Broadcasting Corp.). We in the West have staggering debts. The U.S. is the largest debtor nation in the history of the world."

Central bank easing is artificially propping up global economies now, Rogers says. "This isn't going to last. When it ends, the bull market in commodities will probably end too, but the bull market in a lot of stuff will end."

The United States has financial crises every four to six years, and their severity is dependent on the country's debt burden at the time, Rogers says.

"[The one in] 2008 was worse than 2002 because debt was so much higher," he said. "Wait until 2015 or 2016: debt has gone through the roof. The next one is going to be very bad."

In the meantime, Rogers remains bullish on commodities, despite their recent decline. "It's mainly because of continued growth in demand and supply constraints," he said. In particular, Rogers likes agricultural commodities, especially sugar, and natural gas.

He says that commodities are just in a correction now. Some experts think that correction will last longer.

"It’s likely that the trend will hold through the end of the year," Michael Cuggino, a fund manager at Permanent Portfolio Family of Funds, told Bloomberg.

"Investors see anemic or slowing economic growth in the world’s mature and emerging-market economies, while there’s more supply on hand. That translates to lower prices."

- Source, Money News:

Saturday, December 28, 2013

Nobody Ever Wins in a Trade War

The first thing you need to know is that nobody ever wins a trade war, a currency war, which is just another kind of trade war. Everybody loses in the end, some may temporarily come out ahead but it’s temporary if nothing else. As you have pointed out, the cost of living of many people is going up, and it certainly is, my gosh, in Japan you have a currency that’s down 25% in a year. Well I assure you the Japanese are feeling that because everything that Japan imports has gone up fairly substantially AND even the things that they don’t import are up because the Japanese manufacturers and the Japanese producers can raise prices because they don’t have to worry about competing with the foreigners any more.

- Source, Jim Rogers via Birch Gold Group:

Thursday, December 26, 2013

Do Not Sell Your Crude

There is excess supply in the crude market at the moment because of the Shale boom in the US. I am not sure how much long that is going to last because those wells are very short lived.

But, at the moment there is a glut and we could very well see lower prices. However, do not sell your crude. If prices go down there will first be a cut back on the Shale. Shale has to have high prices in order to bring it to market and secondly oil is going to go much higher over the decade. Other known reserves are in decline, every other country in the world has declining reserves. This is a temporary thing.


- Jim Rogers via the Economic Times:

Tuesday, December 24, 2013

Jim Rogers - Do Your Homework

I do know that I have learned over the years, always, when nearly everybody is thinking the same way that means somebody’s not thinking that means we got to start thinking about it and see if there’s not another way, another approach. Because if everybody says the sky is blue, I at least urge you to go and look out the window and see if it’s blue because I have found that most people won’t even bother to look out the window. If they see on the television or in the newspaper or something that everybody says the sky is blue, I at least urge them to look out the window. I find that most people don’t want to do their homework, that’s the first problem that many people have, is just doing simple homework.

- Source, Birch Gold Group:

Sunday, December 22, 2013

QE, Currency Wars, Inflation and Gold


“…if everybody says the sky is blue, I at least urge you to go and look out the window and see if it’s blue because I have found that most people won’t even bother to look out the window…”

- Source, Birch Gold Group:

Friday, December 20, 2013

Jim Rogers Says "Abolish the Fed and Resign"


It was an historic day on Wall Street with the Dow topping 16,000 on Monday. We'll tell you why-and-what caused the run.

And the revolving door of Washington-to-Wall-Street takes another spin! This time it's Timothy Geithner in the turnstile. We'll tell you where he's going.

Also, "What Would Jim Rogers Do"? We follow up with the legendary investor, and bow-tie aficionado, to get his take on what he would do if put charge of the Fed.

Finally, foreclosures are up from September. In some cities one in every 300 homes received a foreclosure filing last month. Is yours on the list? Rachel Kurzius and Erin discuss in today's Big Deal.

- Source, Russia Today:

Wednesday, December 18, 2013

Be Worried and Get Prepared for 2014

"You saw what happened in 2008-2009, which was worse than the previous economic setback because the debt was so much higher. Well now the debt is staggeringly much higher, and so the next economic problem, whenever it happens and whatever causes it, is going to be worse than in the past, because we have these unbelievable levels of debt, and unbelievable levels of money printing all over the world. Be worried and get prepared. Now it [a collapse] may not happen until 2016 or something, I have no idea when it’s going to happen, but when it comes, be careful."

- Source Jim Rogers

Monday, December 16, 2013

Everybody Knew I was Nuts Back in Those Days!

I went on television quite a lot in those days saying it’s crazy. And I was on CNBC and I explained that I was short Fannie Mae and had been short Fannie Mae and Fannie Mae finally started to collapse. And the lady said to me, “Well it’s your fault that Fannie Mae is going down, it’s the short sellers that are causing problems with Fannie Mae.” And I explained to her, “Listen lady, if you really think that short sellers are making Fannie Mae collapse, you better get another job, because that’s not the way the world works.” Short sellers do not make Fannie Mae go from $70 to $0, I assure you, the only thing that can make that happen is serious fundamental problems. So yes, everybody knew I was nuts back in those days!

And then, they started blaming it on me and on the short sellers, all of the problems. Nobody likes to take responsibility for their mistakes, certainly not politicians, but it was clear that first they laugh at you, then they ridicule you and say it’s your fault and blame it on you. Eventually they all say, “Oh, well we knew that. We thought of it ourselves! We knew that Fannie Mae was a fraud.” But that’s a difficult and sometimes painful process.

- Source Birch Gold Group:

Saturday, December 14, 2013

Buy Base Metals for Protection Against Inflation

I would rather buy base metals now than gold. Base metals are down substantially. Some of the money printing is working its way into the economy. Some of that money would go into base metals as a protection against inflation. I would much rather buy base metals than precious metals.

- Jim Rogers via the Economic Times:

Monday, December 9, 2013

All Bull Markets Have Periods of Correction

“Commodities have pulled back, but I would remind you that in all bull markets there are periods of correction. In 1987 – during the great bull market in stocks – stocks went down 40 to 80 per cent around the world; again in 1989, 1990, 1994, etc. Every time people said the bull market’s over, but it wasn’t. I think that’s what’s happening with commodities now.”

- Jim Rogers

Saturday, December 7, 2013

Eventually the Whole World is Going to Collapse

“Eventually, the whole world is going to collapse. We in the West have staggering debts. The United States is the largest debtor nation in the history of the world. This is going to end badly. We are all floating around on a sea of artificial liquidity right now. This is not going to last.”

- Jim Rogers