Jim Rogers on the Dollar, China and Commodities

Lindsay Whipp of the Financial Times sits down with Jim Rogers in Tokyo for a four-part interview covering the U.S. dollar, China, commodities and crisis-related issues.

Part 1: Rogers sees brief dollar rally
He says he has increased his dollar holdings in anticipation of a rally in the U.S. currency, but the dollar is still broadly set for a lasting decline.

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Part 2: Rogers still a China bull
He says he’s not buying Chinese stocks, but sees the renminbi rising despite its effective peg to the dollar.

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Part 3: Rogers backs commodities for the long run.
He says he’s fully expecting another leg up in commodities, and that real assets represent the best hedge against future inflation.

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Part 4: Rogers on the “bigger picture”.
He says he fully expects more pain in the financial sector, with many of the problems at the heart of the crisis simply being “papered over”.

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Source: Lindsay Whipp, Financial Times (here, here, here and here), November 2, 2009.

Comments

[aussiereader4:]

papered over, thats a great expression for printing money and accounting fraud.

Nov 03 05:10 AM

[Mad Hedge F...:]

cgy You’ve got to hand it to Warren Buffett, who never does anything half heartedly. The stunning news that he is paying $44 billion for the 73.4% of Burlington Northern Sante Fe (BNI) he doesn’t already own, a 30% premium, had punch drunk traders picking themselves off of the floor. The other rails rocketed, like Union Pacific (UNP), CSX (CSX), and Kansas City Southern (KCSR). The deal is the Oracle of Omaha’s largest in his career, and took the BNI board all of 15 minutes to approve. For me this deal speaks volumes about the long term trends in the US economy as seen by its greatest investor. It screams Commodities! Commodities! Commodities! Rails can only prosper moving bulk freight from the heartland to ports on the three coasts, which foreigners are buying in ever larger quantities at ever higher prices. It also says the coal industry isn’t going anywhere soon, as it accounts for 70% of all rail traffic. Buffet let loose of some fascinating statistics about the enormous productivity increases the industry has accomplished. In the last 25 years, it cut employment from 500,000 to 175,000, while increasing freight by 60% and reducing track by 40%, and now accounts for 40% of the total goods moved in the country. Railroads are the greenest transportation out there, a ton of freight requiring only a gallon of fuel to move 470 miles. When I was growing up, my big goal in life was to become a train engineer. Maybe it’s time for me to revisit that aspiration. And I promise not to text while driving!

Nov 03 07:49 PM