, Jim Rogers Blog: March 2014

Monday, March 17, 2014

Want to Make Money? Drive a Tractor

Commodities guru Jim Rogers has a tip for the opportunity-hunters out there: Get back to the land.

For the first time in a long time, the world has “very low inventories” of food products, Rogers told the BBC’s Simon Jack. Plus, there’s a shortage of farmers — and those we do have are getting older, with an average age in the U.S. of 58. Added together, that means there are good prospects in the field.

“Agriculture’s been a terrible business for 30 years. It is now beginning to get better,” the high-profile investor said Tuesday, on BBC Radio 4’s Today” program.

“If you want to make a lot of money in the future — which many people do — you should learn to drive a tractor.”

While the dapper money man may have been pulling Jack’s leg somewhat, his underlying message came through: There’s cash in crops.

It’s not the first time Rogers has suggested this move. A few months back, he told Barron’s that people should “buy shares in farms, farm equipment, fertilizer and seed companies that trade on exchanges around the world.” What makes today’s comments more pointed is that signs are suggesting he’s right in his gloomy prognostication on food supplies.

Severe weather of different kinds, production constraints and other factors are pushing up prices of beef, bread and other staples (read: 10 foods eating into your budget). Plus, California — the U.S.’s agricultural heartland — won’t get any irrigation water this summer, despite being gripped by a drought. That should end up hitting consumer wallets, too. And even the crisis in Ukraine could end up putting pressure on grain markets.

But back to that tractor advice. Why doesn’t Rogers become a farmer, rather than an investor? asked Jack.

“Because I’d be hopeless at it,” he replied, laughing. “I’m not a very smart person. You have be competent to become a farmer.”

- Source, Market Watch:


Saturday, March 15, 2014

Threat of Pension Fund and Savings Confiscation is Real

Jim Rogers is holding on to his gold position in anticipation of an inevitable market bubble and substantial gains. Safe as money in the bank? Not so, says the self-made billionaire; the threat of pension fund and savings confiscation is just one more reason to add precious metals investments to a diversified portfolio.

- Source, Gold Seek:


Thursday, March 13, 2014

Jim Rogers Tells Us What Everyone is Getting Wrong About China

Concerns about a Chinese hard-landing set off by Beijing’s efforts to deflate the credit bubble are making headlines again.

GDP growth slowed to 7.7% in 2013, the lowest level in 14 years. And the slowdown has played a part in the emerging markets rout we have seen recently. But recent trade andlending data, and Lunar New Year sales have come in better than expected.

We reached out to Jim Rogers, chairman of Rogers Holdings , to get his thoughts on the slowdown and on what everyone is getting wrong about China.

Rogers told us that we shouldn’t be very concerned about the slowdown in the Chinese economy. However, he does worry about China’s debt at the local levels.

He also took issue with the naysayers calling for a major crash.

Business Insider: What worries you the most about China right now?

Jim Rogers: The high levels of debt in some areas. Some of the provinces and companies have built up debt in recent years during the recovery, since there has been so very much artificial liquidity all over the world.

All the money printing in the developed world is causing distortions everywhere including China.

BI: How concerned should we be about the economic slowdown in China?

JR: Not much. The government is and has been trying to cool real estate. On the other hand, the Plenary Session in November decided to emphasize several sectors over the next decade or so. Those industries will be doing better no matter what happens in the world. So some will be improving; some declining. The government is trying to cool real estate so I would avoid [that].

BI: What is the one thing people get wrong when they talk about China?

JR: Few seem to understand the historical significance of what is happening there. E.g. Gordon Chang has been writing books and articles since 2001 predicting the collapse of China and the disappearance of the Communist Party. Jim Chanos has been predicting the collapse of China since 2009 saying it will be “1000 times worse than Dubai”. [I explained at the time that showed no understanding of Dubai or of China.] Many in China do not fully understand either.

As the US was rising to its power and glory during the 19th Century, we had a horrible civil war, 15 depressions [Yes, with a D.], few human rights, little rule of law, periodic massacres in the streets, etc., etc. yet we still became the most successful country in the 20th Century.

China will have plenty of setbacks along the way as does every country, company, family, and individual that rises.

- Source, Business Insider:


Tuesday, March 11, 2014

If You Want to Make Money, Become a Farmer

International investor Jim Rogers, chairman of Rogers Holdings, has been bullish on the agriculture sector for years, and he sounded the theme again this week.

The world now faces "very low inventories" of foodstuffs for the first time in years, Rogers tells BBC Radio. In addition, farmers are in short supply and aging, with the average age of a U.S. farmer at 58, he notes.

Put it all together, and it's good news for agriculture. "Agriculture’s been a terrible business for 30 years. It is now beginning to get better. If you want to make a lot of money in the future, which many people do, you should learn to drive a tractor," Rogers suggests.
"Agriculture is going to be one of the most exciting businesses in the next 10 years."

A recent government study supports Rogers’ optimism on farms.

U.S. farms, on average, are bigger and more prosperous but are dwindling in number. And although the number of young farmers has risen, U.S. farmers, on average, are getting even older, a government census of American agriculture has found.

The figures were part of the USDA's "Census of Agriculture," which surveys all U.S. farms and ranches and the people who operate them every five years. The results help shape the nation's agricultural policy.

"The preliminary data provide a snapshot of a strong rural America that has remained stable during difficult economic times,” Agriculture Secretary Tom Vilsack said in a statement.

“The data confirm that farm income is at a record high. However, the prolonged drought and lack of disaster assistance have made it more difficult for livestock producers and mid-sized farms to survive.”

A bright spot in the data is the slight increase in young farmers and the stable number of small farms and large-scale farms, he said.

"As folks age out of farming, it leaves fewer and fewer people potentially in these rural communities. We have to rebuild the middle," Vilsack said.

The average age of farmers rose to 58.3 years from 57.1.

"We have an aging farm population and they are carrying a debt load that is small, historically. But we have also reached that point where this aging population is starting to push over to the younger farmer and it looks like his debt load is going to be sizable," Don Roose, president of U.S. Commodities in West Des Moines, Iowa, told Reuters.

- Source, Money News:


Sunday, March 9, 2014

US Economy, Fed Money Printing, Gold Price Predictions


Jim Rogers appears on Rand Radio and talks about Janet Yellen, FED money printing, the US economy and his gold price predictions going forward.

Friday, March 7, 2014

Gold Seek Radio Interviews Jim Rogers


GoldSeek Radio's Chris Waltzek talks to Famed investor Jim Rogers.


- Source, Gold Seek Radio:

http://radio.goldseek.com/


Wednesday, March 5, 2014

The Fed Will Come To The Rescue Of Down Stock Market


Jim Rogers appears live on Fox Business where he talks about broadcasting, the world and emerging markets. He explains how the FED by creating free money printing has created an artificial market.

- Source, Fox Business:


Monday, March 3, 2014

The Serious Problems in Emerging Markets Are Going to Get Worse


A recent report, published by the European Commission, revealed that corruption costs the EU roughly $120 billion a year. That's around 1% of economic output. Where is the corruption and where is it squeaky clean? Erin Ade reports.

Famed investor and author Jim Rogers is a bull on China and Asia. He sees a shift in the economic importance of Asia, and has even relocated his family to Singapore - to be a part of it! But right now the emerging markets are a big concern. Erin was keen to get Jim's view on the crisis in emerging markets and she certainly does. Jim also gives his view on the US, European, Japanese and Chinese economies -- and the Gold Standard.

In the 'Big Deal,' Erin and Boom Bust producer Edward Harrison discuss money. What exactly does the pyramid on the back of a dollar bill symbolize? And where does a pound or a dollar really derive its value? Erin and Edward explain.

- Source, Russia Today: