Fed will have to try to cut QE

Eventually [the Fed] will try to cut [Quantitative Easing]; it will finally cause the collapse. At that point, we will have a big change, because they will throw them out, whether it's the politicians or the central bankers or whoever … and then we'll finally start over. But it may be really painful in the meantime.

I wish politicians were smart

I wish the politicians were smart enough at some point to say, 
“We've got to stop this, this is going to be bad.”

Eventually the markets will just say, “We’re not going to play this game anymore” and we’ll have a serious collapse. 

You and I can print money all day long, but at some point, you, I and everybody else is going to say, “Wait a minute, guys, this money is getting worse and worse and more and more worthless, so why don’t we stop playing this game?” 

Jim Rogers on Trader wars, Japan

Nobody ever wins a trade war, a currency war, which is just another kind of trade war. Everybody loses in the end , some may temporarily come out ahead but it’s temporary if nothing else. 

The cost of living of many people is going up, and it certainly is, my gosh, in Japan you have a currency that’s down 25% in a year. Well I assure you the Japanese are feeling that because everything that Japan imports has gone up fairly substantially AND even the things that they don’t import are up because the Japanese manufacturers and the Japanese producers can raise prices because they don’t have to worry about competing with the foreigners any more.

Should one invest in Gold or Silver ?

Well, silver is historically down 60% from its all-time highs, so yes, I would prefer silver at the moment because gold is down only what, 30 or 40% from its all-time highs.

Jim Rogers: I made mistakes in my life

I have learned, for whatever reason, to know that change is coming, to know to think against the crowd, that the crowd is nearly always wrong and to try to think for myself. 

Now, I certainly make plenty of mistakes and have made plenty of mistakes in my life, but these are some of the things that I have learned, to try to think around the corner, try to think to the future if you want to be successful.

Excess crude oil is temporary blip

There is excess supply in the crude market at the moment because of the Shale boom in the US. I am not sure how much long that is going to last because those wells are very short lived. But, at the moment there is a glut and we could very well see lower prices. 

However, do not sell your crude. If prices go down there will first be a cut back on the Shale. Shale has to have high prices in order to bring it to market and secondly oil is going to go much higher over the decade. 

Other known reserves are in decline, every other country in the world has declining reserves. This is a temporary thing. 

Bullish Agriculture, base metals says Rogers

Jim Rogers is advocating buying of Agriculture investments. In a recent interview he said, "I am very optimistic about all agricultural products. I do not have a clue for the near term. I am a very bad short term trader."

And on the topic of metals, he likes base metals, not gold right now. Roger says "Base metals are down substantially. I suspect that base metals will be stronger next year. If I had to buy them I would. Some of the money printing is working its way into the economy. Some of that money would go into base metals as a protection against inflation. I would much rather buy base metals than precious metals."



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Bernanke will not slow money printing

I am not sure it [Fed slowing the money printing] is going to happen. Firstly, Bernanke will not do it while he is here (Fed Chairman) because he does not want to go out with an egg on his face. 

Secondly, Ms Janet Yellen is coming in. I doubt if she is going to do it at first anyway because, a) she is keen on printing money and b) she knows what will happen when they start slowing down. So she is not going to do it anytime soon. If they do start slowing down, the markets are going to react and they (Fed) will panic and come back and say, "oh we are sorry". So, I do not see much tapering anytime soon.

The market eventually will force them (the Fed) to cut back. Eventually, the market is going to say, "we do not want this garbage paper anymore, we do not want to play this game anymore". But, I do not see that happening anytime soon.

Thoughts on Currencies and the world

I own the renminbi. I also own the dollar, not because I have such confidence in the U.S., but because I've got to invest somewhere, and if turmoil comes, people will flock to the dollar. It's not a safe haven, but it's considered that way. I cannot invest the way I want the world to be; I have to invest the way the world is.

Look, the yen has declined 25% [against the dollar] in less than a year, a staggering move for one of the world's most important currencies. The euro is a fabulous concept, but its execution has been bad.

I also own the Singapore dollar because I have expenses here. Singapore has allowed its currency to appreciate as a way to attack inflation—and it's an export economy. It doesn't have cotton fields or oil or natural resources, and everything is imported.

The Chinese should learn from Singapore. There are 1.3 billion Chinese, and they would be better off if its currency went up, because the cost of living would go down. Yes, some people, like the exporters, would have to adjust. But remember, the Japanese yen has gone up a lot against the dollar over the decades, and Japan still has a trade surplus with the U.S. But China does things its own way, and I think this is one of their mistakes.

source: barrons.com

Rogers says watch the central banks- Interview

Jim Roger talks about investing in China, Government policies, 2014, central banks around the world. 

Watch the full interview above to hear all his thoughts

Countries fighting debt with more debt

The fundamental problem in Japan is demographics. If they would let in immigrants or if they would have babies, then Japan could be very exciting. But they're not doing that, and they've got to stop spending money. Domestically, Japan is the world's largest debtor nation, and [Prime Minister Abe] says he's going to spend even more. It's astonishing to me that in the last decade or so, politicians all over the world have said the problem of having too much debt should be solved with even more debt!

What is Jim Rogers position on GOLD ?

India is the world's largest consumer of gold. It's their second-largest import, after oil. They can't do much about oil, but Indian politicians are blaming their problems on gold, and they keep putting taxes and restrictions on gold imports. 

I expect I might get another chance to buy more gold in the next year or two, so I'm waiting. But I'm not selling what I have, and I expect gold to go well over $2,000 eventually.

Rogers is buying Sugar

Sugar prices have fallen some 75% from their all-time highs. Consumption is rising as economies grow and as more people use sugar for fuel. Yes, there's been a glut, which is why sugar farmers are producing less of it and prices are down. But you should buy low and sell high, and I'm buying sugar as we speak.

China's growing tourism local and international

Jim Rogers on Chinese roads:
When I first drove across China there were no highways, hotels, gas stations. Now you can get into a car and actually go somewhere. 

 

On Chinese people saving money and tourism:
There's still a high savings rate, but people are starting to spend more. Chinese tourism—both domestic and international—is going to be a staggering growth business for years to come. I own six or seven Chinese airlines because of that.

You can buy and sell congressmen

In the 19th century, as America was rising to power and glory, we had 15 depressions, virtually no human rights, little rule of law, massacres in the streets. You could buy and sell Congressmen in those days—you can still buy and sell Congressmen, but in those days they were a lot cheaper.