Thursday, June 04, 2009
In this interview appearing in India's Economic Times, famed investor Jim Rogers comments on the recent run-up in prices in virtually all asset classes.
Central banks all over the world have printed huge amounts of money, and the real economy is not strong enough for all this money to be absorbed... so, it's going into stocks and real assets such as commodities. It's a mistake what they are doing. It's giving short-term pleasure, but there's long-term pain as we are going to have much higher inflation, much higher interest rates and a worse economy down the road.There's lots more - currency crises, sovereign defaults, the Obama administration's approach to the U.S. economy, investing in Asia, and, of course, commodities.
The American bond market is already beginning to go down dramatically as people realise that the American government has to sell huge amount of bonds, and secondly, there is going to be inflation, serious inflation, as it was always in the past when you had governments printing huge amounts of money.