Jim Rogers on Commodities, the Euro & Central Banking
Jim Rogers was interview by Reuters on 13/7/11. He spoke about his positions, commodities, the Euro and central banking. See below for the video & summary.
- Commodities are good either way. If the world economy gets better, shortages will be apparent. If the world economy doesn’t get better, central bankers will print money.
- He has learned the hard way not to short secular bull markets. Instead, he tries to short those areas that are deteriorating on a secular basis.
- Only huge discoveries and/or huge investment could stop the commodities bull market.
- The IEA intervention was a publicity stunt. The supplied the market with enough oil to get the world to tea-time on one day!
- Bernanke has spent the past 30 years studying money printing, and now we’ve given him the printing press.
- In a capitalistic system, assets move from the losers to the competent people. They then reorganize, and the economy can start afresh.
- The Eurosystem is being tested. He suspects that it will survive this time.
- He’s not shorting European banks because they’re already depressed. He likes to short things that are up.
- His basic portfolio is this: Long Commodities & Currencies, Short Emerging Market Stocks, Technology Stocks, A Large US Bank & US Government Bonds.
- He cannot conceive of lending to the US Government for 30 years at 4%, 5% or 6%.
- Trichet, the Indian central bankers & the Australian central bankers are all better than Bernanke.
- With regards to China, he’s never seen a government pull off a soft landing.
Recommended: Charting the Federal Reserve's Assets - 1915 to 2012