Wikinvest Wire

Jim Rogers on "short term pleasure"

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.

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.
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.


Justin said...

I watched Jim on CNBC today, it was awesome. I was laughing when he said Bernanke was in over his head and didn't know what he was doing. I know it really isn't funny, but I couldn't help myself. The really scary part, and I believe he mentioned it today, is that Tim and Ben have no exit strategy for all the inflationary measures they have taken. This is something that many astute bloggers have pointed out recently and I think it is great that this realization is gaining some momentum. Is it possible the public awareness could actually be helping shape policy since they seem to be backpedaling on things like LLP and PPIP?

PS thanks Tim I'll get all my information together and send you an email about our site so you can take a look and offer whatever input. I know you are busy getting settled in so no hurry. Just saw the forecast and it should be a beautiful weekend so enjoy!

Anonymous said...

Come back home then Jim. Help us fix this mess! No? Life is just too sweet and comfy over in your Singapore ivory tower, making your money on US companies moving American jobs to Asia often with the help of US tax breaks.

Jim may be good at making money for himself but his yapping about what's good for America is disingenious at best.

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