August 2, 2014

Jim Rogers and Global Inflation

New Wave Slave videoJim Rogers, in his latest interview, cuts right to the chase: “I don’t own many equities, because I don’t know what is going to happen in the world economy. I expect more currency turmoil, more social unrest, more governments collapsing. So I am investing in currencies and commodities rather than stocks.” Pretty much like everyone else, as we have been suggesting for quite a while. Rogers snaps at the trademark CNBC question of what he would be investing in: “I have been explaining to everybody on CNBC for a year and half or two now that food prices are going to go through the roof, they’re going to explode. We have serious shortage of everything developing, including shortages of farmers… The average age of farmers in one major agricultural state is 58 years old. In 10 years it will be 68 years old. In parts of Japan they have no farmers… It takes 7 years for a coffee tree to mature. Orange trees, palm trees: you don’t just suddenly snap your fingers and suddenly get some more palm oil. All of this takes time.” So all those who believe that the surge in people rushing to fill the ag arbitrage holes will produce immediate results, may need to wait 3-7 years, dependant on access to manure.

On whether this is not a demand-led inflation in commodity prices:

Whenever governments have printed money throughout history, people put their money in real assets, whether it’s rice or silver or natural gas. People protect themselves, they don’t just say “give me some more paper money.” And if you say it’s not demand: go to India, go to China, see how people are changing their lives and using more.” As for supply: “Commodities are based on supply and demand. You can have demand go down, but if supply goes down more you are going to have a bull market.”

Not surprisingly, Rogers see oil at $150, and the exchange between Rogers and some CNBC guy discussing the role of speculators (it is all the evil speculators’ fault, never the Chairsaint) is worth watching the clip alone.

Rogers’ response to CNBC’s desperate attempt to get him to list a stock or two for the lemmings to buy into, the response is priceless: “Commodities have outperformed stock by 10 times over the last 10-12 years. Why aren’t you doing only commodities. It’s outperformed stocks by 1,000%. To me it’s pretty simple, you should change the name to CommoditiesNBC.”

And, finally, his response to what his stock exposure is is not what CNBC wanted to hear. “I am short emerging markets ETFs, short Nasdaq ETFs.”

Brilliant as always. (from the fine folks at ZeroHedge)

Here’s the Jim Rogers video posted by

Jim Rogers and the Housing Bubble

Jim Rogers covers a wide range of topics in this interview on CNBC Worldwide Exchange.  Rogers covers diverse topics such as: China & interest rates, the upcoming G20 meeting where he says “something is building and it will be bad”. He tells Dick Bove to buy bank stocks, but he is not. Jim Rogers also talks of commodity inflation and says that no one knows the book value of JP Morgan, Bank of America, Wells Fargo, etc..  Over all a great interview, except for the annoying, cutsey, bubble head named Nicole from CNBC who keeps asking stupid questions.  Enjoy!
Breaking the Chains that Bind…

Jim Rogers & International Trade Wars

Legendary investor Jim Rogers appears on CNBC Worldwide Exchange and discusses the possibility of trade wars around the world and their destructive nature. Such a trade war & currency crisis could cause a “1930′s style collapse”. Rogers said the Dow could reach 5,000 or 50,000 depending on the amount of money printing by the Federal Reserve. (also known as Quantitative Easing) Enjoy!
Breaking the Chains that Bind