All Things Jim Rogers » commodities

Jim Rogers Says U.S. Bailouts Add to Risk of Depression

Admin — Tue, 17 Mar 2009 12:28:13 +0000

Jim Rogers told Bloomberg that the U.S. risks sending the world into a depression as its bailouts of failed companies rob healthy businesses of capital.

“The U.S. is taking assets from competent people and giving them to incompetent people,” said Roger

“That’s bad economics.”

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Jim Rogers on Dollar, Commodities, and Banks

Admin — Fri, 12 Dec 2008 13:44:42 +0000

Hot off the presses, Jim is talking about how he is selling the dollar, explaing what is going on in commodities, and large U.S. banks.

First, let’e get to his bread and butter, Commodities….

“Remember: Commodities are essentially based on supply and demand. Now, you have demand declining but at the same time you have supply going down even more. So, we are going to have higher prices, eventually.”

Why commodities considering the major declines?

“What you do in times like these is you find and buy the things where fundamentals are unimpaired. The only thing good I know where the fundamentals are unimpaired or where they have actually improved are commodities.

“There were some horrible setbacks along the way. I see this as just one of those horrible setbacks.”

Supply and Demand For Dummies

“Farmers are not getting loans to buy fertilizer now. Nobody can get a loan for a zinc mine now. All the mines are either closing and the ones still in production are using their reserves. Nobody can make new oil discoveries because prices are so low.”

On the Greenback (U.S. Dollar)

“The dollar is a terribly flawed currency, and perhaps a doomed currency. I’ve driven around the world looking for a sound currency. There aren’t any … but the yen is the only thing that’s going to go up for a while”

“I plan to get out of all of my U.S. dollars at some time throughout this rally.”

“I’ve driven around the world looking for a sound currency. There aren’t any…. but the yen is the only thing that’s going to go up for a while,”

“The dollar is a terribly flawed currency, and perhaps a doomed currency.”

Economics 101

“What’s happening this time is that the government is taking the assets from the competent people and giving them to the incompetent people and saying, now you can compete with the competent people. It is horrible economics”

Russia

“Russia is a disaster that is spiraling down to a catastrophe. I wouldn’t put a penny of my money into Russia right now”

Central Europe

“Central Europe is a giant fiasco — hundreds of billions of dollars were floated using the Swiss franc and Japanese yen because rates were so low — You’ve got some huge huge problems coming out,” he said. “Banks there aren’t writing them down yet.”

U.S Banks

“Without giving specific names, most of the significant American banks, the larger banks, are bankrupt, totally bankrupt”

U.S. Government

“Governments are making mistakes,” he said. “They’re saying to all the banks, you don’t have to tell us your situation. You can continue to use your balance sheet that is phony…. All these guys are bankrupt, they’re still worrying about their bonuses, they’re still trying to pay their dividends, and the whole system is weakened.”

Sources:

http://www.reuters.com/article/InvestmentOutlook09/idUSTRE4BA75H20081211?pageNumber=1

http://www.guardian.co.uk/business/feedarticle/8145557

http://www.reuters.com/article/InvestmentOutlook09/idUSTRE4BA57K20081211

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Dollars Days Are Numbered; Buy Commodities

Admin — Sat, 15 Nov 2008 00:26:38 +0000

Speaking from investment conference in London, Jim Rogers reiterated that the dollar’s days are numbers and commodities are one of the only investment opportunities left.

Why are the dollar’s days numbered?

“The greenback faces serious devaluation as spiraling national debt and a worsening economic crisis undermine it’

“America’s growing debt problem is “out of control” and Federal Reserve Chief Ben Bernanke’s strategy of printing money is a “terrible policy,”

“Bernanke “does not understand economics, he does not understand markets … he is going to run those printing presses until we run out of trees”

The dollar is going to have “serious problems down the road,”

Why commodities?

“In the face of economic uncertainty, commodities will go through the roof. Over the next ten years, everyone in the world is going to be talking about commodities”

“Commodities will boom during times of economic stress, because demand will stay high even though there will be supply shortages,”

“When supply goes down and demand goes up, that’s a bull market”

“The only place I know where the fundamentals are unimpaired is commodities”

“Nearly every oil-producing country has declining reserves”

“Africa as being a key continent for oil exploration going forward. He also speculated that a commodities bull run could last until 2020.”

How long will the commodity bull market last?

“If you follow history, bull markets will last 18 to 20 years,” he said. “So I would expect the commodity bull market to end in 2020, but there are no guarantees.”

Africa!!!!

“”China has got the right idea and has spent the last ten years buying up Africa’s natural resources,” he said. “If there were more of me I would be over in Angola, Ethiopa, Botswana and Tanzania.”"

Thoughts on oil…

“Rogers was also positive that oil will hit the $100 mark again, “Maybe not over the next year,” he told Energy Risk. “But it will rebound over $100 over the remainder of the bull market,” he said.”

What about stocks?

“Stocks at best are going to continue in a big trading range”

Source: http://www.cnbc.com/id/27717135

Source: http://www.energyrisk.com/public/showPage.html?page=826427

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