Via: The Global Post
Two great video from Jim Rogers speech at the Asian Financial Forum (AFF). A couple of quotes below and of course some videos, Enjoy.
“In my view the focus of the world is shifting from the West to Asia,” Rogers said in a speech to the Asian Financial Forum in Hong Kong. “Probably the most important thing that’s happening in the world in the 21st century is the rise of China.”
“Throughout history, when you’ve seen transitions, it’s always been about where the money goes and the money is now in Asia,” Rogers said. “This is going to be the new center of the world, not just the financial world, but the political world as well.”
“I cannot conceive of lending money to the United States. I will tell you that anybody who buys government bonds is making a terrible, terrible mistake,” Rogers said. “If I were you, I’d go home and sell your bonds. And if you happen to be a bond portfolio manager, I would urge you to get another job. You’re in the wrong place at the wrong time.”
“The American government is making a terrible mistake. The plan they have is not going to work,” Rogers said. “I don’t see how you can solve the problem of excess lending and excess consumption with more lending and more consumption. It’s ludicrous on its face the path they have chosen. I would prepare yourself to be very worried about what’s going to happen in the future and start preparing to get out if you’re an equity investor.
“Now he has backed away somewhat from those platforms, but I’m extremely worried,” Rogers said. “The change is all very exciting, but the new things are more spending, more debt, more inflation and higher interest rates down the road. I don’t see any signs these guys have a clue what to do.”
“If you go back and look at history, you will find when we’ve had periods of forced liquidations, the way you make money historically is you find the thing where the fundamentals are unimpaired and that’s what you buy,” he said. “The fundamentals of most industries in the world are very impaired by what has happened. But commodities are not impaired. Things are so bad farmers can’t get loans for fertilizer, nobody can get a loan to open a mine. Supply is under pressure at a time when the world is going to continue to eat and do all those things we have to do.
“Once again the world is going through a period where the people who produce real things are going to make money and not the paper-changers in the City of London,” Rogers continued. “If any of you have MBAs, I would rush down and see if you can exchange it for an agricultural degree. All those guys on Wall Street or in the city of London driving Maseratis need to learn how to drive a tractor.”