Via: Bloomberg
Jim Rogers told Bloomberg that China’s stimulus spending will help its economy overcome the global recession sooner than the U.S. and other countries. Jim Rogers also added that China’s reserves allow the government to spend on projects that will make the nation more efficient and competitive as the global economy recovers.
“I certainly expect China to come out of it sooner than the U.S.”
Premier Wen Jiabao reiterated last week the government’s pledge to “significantly increase” investment in 2009 to help counter the slowest growth in seven years. He didn’t specify new stimulus spending in addition to a 4 trillion yuan ($585 billion) plan announced in November.
China will allow trade settlement in yuan with Hong Kong soon, central bank Governor Zhou Xiaochuan said at a briefing in Beijing on March 6.
“I’m glad to see they’re taking yet another step towards convertibility,” said Rogers, who in April 2006 accurately predicted oil would reach $100 a barrel and gold $1,000 an ounce. He said he owns Japanese yen as he expects more of the money to “come home.”
Out of Dollar in 2009
“I plan later this year to get out of the rest of my U.S. dollars,” he said. “It’s had an artificial rally too but it’s a terribly flawed currency. The U.S. is printing money as fast as it can and that’s always throughout history led to currency problems down the road.”
Ag and Commodities
Rogers added he remains bullish on agriculture and that commodities are “the only area of the world economy I know which is benefiting.” He said he owns “some” gold and silver, and regards silver as “cheaper.”
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September 6th, 2009 at 2:04 am
Economic recession created huge unemployment rates around the world. I think the world economy is already on the road to recovery.
October 17th, 2009 at 9:40 am
the economic recession made a lot of workers jobless. my best friend and me lost our jobs because of job cuts. i hope that our economy would recover soon.