On the 60th anniversary of the founding of the PRC, Jim Rogers appeared on CNBC to talk about China’s currency, its role as a creditor nation, and sectors in China that will prosper in the future. Jim also mentions that the U.S is vulnerable to hyperinflation and in disagreement with government reports, true inflation is 6-7%.
“China saved up huge reserves for a rainy day, now it’s raining and they’re spending those reserves,” Rogers said.
“You contrast that with the UK or the US for instance which has no reserves, has nothing but huge debts and they’re borrowing, or printing, or taxing to spend their money… I’d rather be in the East than in the West.”
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7. October 2009 at 9:15 pm
I’ve been reading a number of articles saying how China needs to increase its domestic spending as a result of decreasing U.S. consumption. Companies in China need to come up with better financial strategies and plan for the worse. What if spending in China doesn’t increase in accordance with their expectations? There’s a site called Asia Chronicle that focuses on the more political side of China. Nevertheless, politics and economics are inter-related. Worth a read I think. http://www.asiachroniclenews.com