, Jim Rogers Blog: May 2014

Friday, May 23, 2014

The Debt is Going Higher and Higher

Jim Rogers recently discussed with Yahoo! Finance how all western governments are bankrupt, which we cover regularly, stating "There is no sound currency anymore...There's no paper money in 2014 and 2015 that's going to be worth much of anything."

Bloomberg recently reported that the US dollar reached a two-year low, it's weakest level since November 2011. Furthermore, the US dollar has lost 38.5% of its value since 2002. Rogers predicted the US will soon abandon the dollar for another currency!

"For the first time in recorded history we have all major banks and central governments around the world printing huge amounts of money," Rogers said. "This has never happened in world history and so the world is floating on an artificial ocean... of lots and lots of printed money," said Rogers.

"The debt is going higher and higher. The money printing is going higher and higher. We've had 50 or 60 years of success in America," he said. "You've got to pay the price someday whether you like it or not. The longer you delay the day of reckoning, the worse the day of reckoning is going to be. This is not going to be fun."


- Source, The Market Oracle

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Wednesday, May 21, 2014

Government Figures Are All Phony

China is vastly different from Dubai, vastly.

Dubai was building its plan, its economic plan was to build an economy based on real estate speculation. It didn’t have anything else. It didn’t have oil, natural resources, it had a small population etc. and there was gigantic real estate speculation in construction. China has huge amounts of stuff. It has a growing population. It has vast natural resources, not enough, but it’s got some. And then all those natural resources in Siberia which they can tap and they’ve got huge financial reserves. Dubai does not. Dubai has a rich big brother, but that’s all Dubai has and China has it all - resources, cheap labor, discipline, educated labor and vast markets.

As far as the lower growth rates, I don’t pay attention to government growth figures because they’re all phony. Nobody knows how much China is growing, including China. I don’t pay attention to all of these figures. They’re not important to me. They’re irrelevant. China is certainly doing better than most countries and it will continue to do so. It will have setbacks. There’s nothing that says China should not have a recession. But China has a lot of money saved for a rainy day and when it rains they’re going to spend. America doesn’t have any money saved for a rainy day. And when it rains we’re going to try to borrow it or print it, neither of which is good for America or for the world.


- Source, Jim Rogers via a recent Business Insider interview.

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Monday, May 19, 2014

The Collapse of China

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”. [Jim Rogers 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, 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.

The Chinese government is trying to cool real estate so Jim Rogers would avoid Chinese Real Estate.

- Jim Rogers

Saturday, May 17, 2014

United States is in Danger of Being a Third World Country

About 50 of us currently on the FreedomFest Asian cruise heard famed financial guru Jim Rogers (“The Adventure Capitalist”) speak on his living in Singapore and your latest investment advice. He is an old friend who, as the former partner of George Soros, made millions of dollars in a joint hedge fund. Rogers traveled the world in the early 2000s as told in his book “Investment Biker.” My favorite book is “Street Smarts,” which can be ordered from Amazon.

Rogers and I have two things in common — we both have taught at Columbia Business School and we share the same birthday, Oct. 19. Thus, we are known as the “crash babies.”

Now he lives with his wife and two young children in Singapore, where they are learning Mandarin Chinese. He believes that just as the future belonged to the British in the 19th century and the Americans in the 20th century, so the Chinese will own the 21st century. But he still feels that the dollar is king and English is the language of international commerce. Yet he warns that the United States is in danger of being a Third World country in terms of infrastructure of education. The Asians are more advanced now than the United States (except in places like Thailand, Indonesia and the Philippines).

Rogers is a generally a bear on the stock market and bullish on commodities, but he’s not invested in gold right now. He hopes to see it under $1,000 an ounce. But he did warn of another crisis coming in the “next two or three years.” The dollar will be the safe haven at that time, but in the long term he’s bearish on the dollar. China will have its share of crises, he said, just like America in the 19th century suffering from civil war and numerous panics. He’s keen on education.


My grandson asked Jim Rogers the question, “Do you recommend any small-cap stocks for small people?”

My Asian tour’s next stop is Hong Kong (where I will be having lunch with Richard Yong, a top economist at the University of Hong Kong), before going to Taiwan and Japan. I’ll have a follow-up report in the coming days.

Interesting fact: All of the Asian countries have been growing much faster than the United States since the 2008 financial crisis, but all of the emerging markets except one (Thailand) have underperformed the U.S. stock market. It just goes to show that Wall Street is not Main Street. In my newsletter, I’m not recommending any index funds in Asia, although that might change. Wall Street is where the action is.

At the end of his talk, I asked Rogers what the most important lesson was that he’s learned in life. He said, “Having children — they are more important than anything else you do in life, your career, your business, your friends.”

- Source, Townhall Finance

Thursday, May 15, 2014

A Look Back at His Life and How He Got So Rich


James Beeland Jim Rogers, Jr. (born October 19, 1942) is an American businessman, investor and author. He is currently based in Singapore. Rogers is the Chairman of Rogers Holdings and Beeland Interests, Inc. He was the co-founder of the Quantum Fund and creator of the Rogers International Commodities Index (RICI).

Tuesday, May 13, 2014

The Global Economy of the 21st Century


The Global Economy of the 21st Century In November 2010 legendary investor Jim Rogers returned to his alma mater Balliol College, Oxford as part of the 'Voices from Oxford' series.

Sunday, May 11, 2014

US Economy is No Longer Producing


US Economy is no longer producing. There are no more farmers just wall street.

Wednesday, May 7, 2014

The World is Facing a Food Crisis


The rise in local land prices has been fueled mainly by a worldwide agricultural commodity boom that has driven food prices up by more than 100 percent since 2003, according to the Food and Agriculture Organization of the United Nations (FAO).

"More people need to get into farming; otherwise, we won't have any food," said commodity investor Jim Rogers, who launched the international Quantum Fund with George Soros in the early 1970s and went on to create the Rogers International Commodities Index, which tracks the performance of numerous commodities in global markets, ranging from agriculture to metals and energy products.

Rogers and Notaro belong to an increasingly active community of farmland investors hoping to profit from the world's growing need for nourishment. "I'm still wildly optimistic about the future of agriculture worldwide," said Rogers, who has served as an advisor and as a director to companies that hold farmland in Australia, Brazil and North America.

- Source, Russia Today

Monday, May 5, 2014

U.S. Dollar is a Terribly Flawed Currency


Jim Rogers thinks sanctions on Russia over the Ukraine crisis are bad for the dollar. Rogers says, "This just pushes people further away from the U.S. dollar. I don't like saying this because I am an American, but the U.S. dollar is a terribly flawed currency. We're the largest debtor nation in world history, and now we are telling people you'd better be careful if you use the U.S. dollar. We may take it away from you. We may block you. Of course, people are going to look for an alternative."

Rogers is also a best-selling author that most recently wrote the book "Street Smarts: On the Road and in the Markets." Where is he investing his money? Rogers reveals, "I own real assets. I own agriculture." Is Rogers afraid of a systemic crash in the global economy? His reply, "Aren't you? I don't think it will happen over Ukraine, but it could because politicians do very foolish things."

- Source, USA Watchdog


Saturday, May 3, 2014

If China Bails Out Europe It Will Gain More Global Power


Jim Rogers appears on Russia Today, where he discusses the Chinese bailouts. He believe China is gaining more and more power.