‘All Commodities Are In A Bull Market’ Says Jim Rogers
Jim Rogers appeared as the featured guest on “The Gold and Silver Review” on Wednesday. The CEO of Rogers Holdings talked to Chris Waltzek about his economic outlook and investment strategy:
Federal Reserve & U.S. Monetary Policy
America’s had three central banks. The first two failed. Looks like this one’s going to fail, too. So I think it’s better to close it before it fails, rather than after it fails.
Banks are designed to bail out bankers. They’re not designed to bail out you and me. And this central bank is doing exactly that. It’s bailing out Wall Street. What it’s doing is bad for you, me, 300 million Americans, bad for the world. It’s good for a few guys on Wall Street who can keep their Maseratis. It’s not good for you and me.
Interest Rates
They could go to very low interest rates. They probably will. You know, they went to 1% not very long ago.
The Seventies
Unfortunately, the central bank in America is making the same mistakes which they made in the 1970s. The head… was Arthur Burns. He kept printing money as fast as he could, trying to prop everything up, and as you remember, the seventies were a pretty bad economy.
In the 1990s, the Japanese made the same mistake… And as you know, in Japan they talk about the 1990s as the “lost decade.” America’s making exactly the same mistake, and we could have a “lost decade.”
“Remember me?”
Fed Chairman Ben Bernanke
Look, it’s going to get worse, if you ask me… He has panicked, he’s an academic, he doesn’t understand markets, or currencies, or finance. He doesn’t even understand economics we now know, and unfortunately, in the end, you and I are gonna pay for it.
Inflation/U.S. Dollar
It’s certainly too late for inflation and the U.S. dollar. That’s for sure.
Currencies
Chinese Renminbi/Yuan:
China’s on the rise, whether we like it or not. There’s a billion, three hundred million of them, and that currency has to rise over the next several years.
Japanese Yen:
It’s one of the safer investments that I can see… I’ve been buying the Japanese yen from all the speculators… I’m not sure I’d rush out and buy it today… If the yen goes down for a while, I plan to buy more yen.
Commodities
The commodities bull market has another 10 or 15 years to go.
All commodities are in a bull market, a secular bull market, which has several more years to go.
Gold:
I do know it’s going to go a lot higher… I’m sure it will go over $1,500, $2,000. Not this year, probably, but certainly during the course of the bull market.
Crude Oil:
Is crude oil a place to have money? Yes. Is it going to be much higher in the next decade? Yes.
Other Buys
• Agriculture
• Swiss franc- “I’ve been buying it”
• Taiwan- “I’ve been buying Taiwan… I’ve never bought Taiwan before.”
• Airlines- “I’ve been buying airlines… I own those, and periodically I buy them when they go down. I think my big play will be later. But I did pick up some last week, as a matter of fact.”
You can listen to the GoldSeek interview here.
Source:
“The Gold and Silver Review”
GoldSeek.com, March 26, 2008
