Jim Rogers Agrees with Marc Faber

Classic Jim Rogers - obviously he is on the same train as Marc Faber in terms of printing presses on overdrive [May 15, 2009: This was a Central Bank Printing Press Rally] As with Faber, Rogers is mostly stuck on CNBC Asia or Europe... don't want to disrupt green seeds stateside. He is not short or hedged in anything at the moment, but buying Japanese Yen.

The next crisis in his eyes are currencies which makes sense since sovereign states have taken much of the bad debt from the banks and piled them onto their own balance sheets (or if you will, their central banks)... i.e. toxic is taken from private parties and splayed onto the backs of the public. Capitalism! Wait, Socialism! Wait... ok... who knows what we call it ... I call it Reverse Robin Hood = steal from the peasants to give to the Lords.

All earlier Jim Rogers posts can be found here.

"Mandy, you give me $5-6 Trillion dollars and I'll show you a very good time"

The stock market may hit new lows this year or the next as the current rally has been largely caused by the money printed by central banks and fundamental problems remain unsolved, legendary investor Jim Rogers told CNBC Wednesday.

His views echo those of renowned bear Marc Faber, who told CNBC last week that the rises in share prices did not mean the world was embarking on a path of sustainable economic growth.

"I'm not buying shares if that's what you mean. Not at all," Rogers told "Squawk Box Asia."

Governments have not solved the essential problems that caused the crisis but instead they "flooded the world with money," according to Rogers. Trying to solve the problem of too much consumption and too much debt with more consumption "defies belief" and will not work, he said.

The price of oil is also likely to remain high despite the fact that the recession is taking its toll on demand, he said.

"You know supplies worldwide are declining at the rate of anywhere from 4 to 6 percent a year, yes, demand is down at the moment but in longer term, unless somebody discovers a lot of oil very quickly, the surprise is going to be how high the price of oil stays, and how high it eventually goes," Rogers added.

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The next financial meltdown will be in the currency markets, as central banks around the world have been printing money, giving the appearance of massive government intervention to weaken their currencies, legendary investor Jim Rogers, chairman, Rogers Holdings, told CNBC Wednesday.

"At the moment I have virtually no hedges, I suspect it is going to be the next problem, big crisis will be in the currency markets, I'm trying to figure out what to do there," Rogers told "Squawk Box Asia".

"If I am right, you're going to see a lot of currency problems in the next decade or two," Rogers said. Governments around the world are doing their best to destroy currencies, many currencies in fact. And people need to understand that; if they don't understand it now, they're going to find out, they're going to find out the hard way," he added.

Comments

[RiskReturnOptimizer]

Following Jim Roger's advice, long DBA (agriculture), long FXI (China), hedged with short IBN / HDB (India banks). This way, weak dollar, you win; global inflation, you win. Further bank weakness, you win.

2009 May 21 12:31 PM

[Cuthbert]

"Governments around the world are doing their best to destroy currencies, many currencies in fact. And people need to understand that; if they don't understand it now, they're going to find out, they're going to find out the hard way"
Ok, I'll bite. What can I do so I don't find out the hard way??

2009 May 21 01:16 PM

[Karl Glazier]

Jim Rogers is up to his usual scaremongering. That gives him an audience.
Increasing the money supply leads to increased nominal GDP.
According to him, that leads to inflation, as more money is chasing the same goods. RUBBISH!!!
In reality, it leads to increased production with no inflation as far as the eye can see, due to worldwide overcapacities in everything.

2009 May 22 01:53 AM

[Tony Daltorio]

I would advise you to wake up and follow the financial news once in a while. Jim Rogers is correct - productive capacity, particularly in commodities, is dropping rapidly. Hardly a week passes without some major industrial project being mothballed.

The only industries with overcapacity are the industries where America "leads" - financial and tech.

On May 22 01:53 AM Karl Glazier wrote:

> Jim Rogers is up to his usual scaremongering. That gives him an audience.
>
> Increasing the money supply leads to increased nominal GDP.
> According to him, that leads to inflation, as more money is chasing
> the same goods. RUBBISH!!!
> In reality, it leads to increased production with no inflation as
> far as the eye can see, due to worldwide overcapacities in everything.

2009 May 22 01:54 PM

[Fred Voetsch]

All roads lead to a falling stock market, at least in the US and likely in Europe and the rest of the west. Conserve your wealth and hedge against whatever is exposed. For me that is my business but for many it would have been their house or their stock fund...probably too late as much wealth is gone and won't ever be back.

Please, people, start to think and not just listen to the hacks on Bloomberg where they keep telling us the P/E of the S&P is 14 or CNBC, where not a moment goes by without some important bit of misinformation being presented as fact.

2009 May 23 05:08 AM