Jim Rogers Still Bullish on Commodities, Bearish on the Fed

 |  Includes: DBC, DJP, GCC
by: Faisal Laljee

Jim Rogers, famed author of Hot Commodities: How Anyone Can Invest Profitably in the World's Best Market and Investment Biker: Around the World with Jim Rogers, and chairman of Rogers Holdings is still bullish on commodities. The original bull on commodities has long been a staunch believer in commodities including metals, agriculture and energy and has recently launched a verbal offensive against the Federal Reserve Bank and the US Treasury for injecting so much liquidity into the market, which is often followed by higher inflation.

In an interview with Bloomberg on October 24, Jim Rogers reiterated that gold, agriculture and other commodities will continue to go up once the markets settle. Click on the video below to see his full interview.

In an interview with CNBC on October 22, Jim was specially critical of the Fed Chairman Ben Bernanke. Click on the video below to see this interview.

While I am in no position to criticise the Fed, I do believe that the government is trying very hard to prevent this recession by taking drastic steps in the form of lower interest rates, cash infusions, increased money supply and the $700 billion package for banks. Recessions are part of any economy and as such need to be embraced with positive policies that promote job growth and development. Throwing money into the system does indeed cause inflation and only delays the inevitable. In fact, in some cases, it even magnifies the recession.

As far as commodities go, it is time to buy oil, gold and agriculture. It has declined over 50% in 4 months. Gold too, is down 20% from its highs earlier this year, and agriculture stocks have been pounded up to 75%.

For those who don't have access to buy commodities, I will be publishing a list of commodity stocks to start buying soon. Stay tuned ...