Jim Rogers: Obama's Economic Disaster to get Worse

Now that Barack Obama has been re-elected President of the United States, billionaire commodity expert and investor Jim Rogers sees his disastrous economic policies as not only continuing, but making things much worse for Americans and the world in general.

More deficit spending means more economic problems for the United States asserts Rogers, who also says the global markets have probably already discounted the eventuality of a fiscal crisis in America.

Rogers has consistently stated that in 2013 and 2014 it's going to be very rough years for the United States economically.

"America is going to have a slowdown in 2013-14, there will be fewer jobs, more unemployment and turmoil in oil and currency markets," Rogers said.

Even so, Rogers says there is little doubt the so-called fiscal cliff in the country will get a quick fix by politicians, but in the end it'll make things even worse.

When queried about a possible downgrade of the economy of the United States, Rogers said it should have already been done in the minds of investors. "If you haven't downgraded America in your mind, you may do so," he concluded.

He sees no change in the practices of the Federal Reserve either, where he expects printing money out of thin air to continue as it has been.

Rogers sees hard assets as the place to be over the next ten years, with gold prices expected to continue to soar.

Along with his recommendation that investors get into agriculture, he also suggests metals as another strong place to put your money.

He has put his money where is mouth is, recently buying up agricultural land in Australia.

Jim Rogers Likes Silver More Than Gold at This Time

Billionaire commodity expert Jim Rogers reiterated his current stance on gold, saying he's looking more towards silver than gold as the better investment at this time, citing the fact that silver is down more than gold, and gold has also had a decade of increases, which means it is susceptible to a major correction.

As measured by an historic basis, silver is about "40 percent below its all-time high," says Rogers, adding that "gold is 10 percent to 15 percent below its all-time high."

In other words, he sees more upwards potential.

Even if there is more stimulus around the world, which is highly likely, and if gold gets a boost from that, silver is likely to get an even bigger boost from stimulus, especially as it would at least appear to renew industrial demand from manufacturers around the world.

Gold would benefit mostly from the safety and defense against inflation factors, while silver, on a secondary basis, would also benefit for the same reasons.

Jim Rogers on Obama Juicing Up Economy

Billionaire investor Jim Rogers recently said the American government is attempting to create an illusion the economy is improving in light of the upcoming elections.

Talking to India's Economic Times, Rogers stated, "You have the American government spending staggering amounts of money right now, printing a lot of money and getting ready for the election."

"You have to remember the election in America in November...they do their best to get the economy juiced up so they can win the election," he concluded.

The problem is this will be even more devastating economically after the elections, with the fallout of the increasing money supply sure to wreak havoc on the economy.

"2013 and 2014 are what I am most worried about because this year everybody is trying to just get through the next election...Everybody is going to do their best to get us through the election. Watch out for 2013," said Rogers.

Rogers says he continues to hold onto gold, and hopes it consolidates more before continuing its upwards price movement.

Jim Rogers Says "End the Fed"

Jim Rogers said in an interview on "Breakout," the new financial show offered by Yahoo! Finance (NASDAQ:YHOO), that the Ben Bernanke and the Federal Reserve continue to be a disaster, and if he was instated as Chairman of the Federal Reserve, he would shut it down quickly in order to start working on the problems it has created.

He says Bernanke continues to make things worse by throwing "fuel on the fire," rather than dealing with the underlying issues.

Rogers ultimately sees higher interest rates and inflation going forward, and a major pullback in equities, especially in the tech sector.

Jim Rogers: U.S. Dollar Could Collapse in Few Weeks

According to billionaire investor Jim Rogers, the U.S. dollar is at a "tipping point," and while he has believed the greenback would collapse, he thought it would be in several years, now he said it could possibly happen in a few weeks.

"Somewhere along the line we're going to have a tipping point for the dollar, then it's all over," said Rogers. "I thought it would happen in a few years; maybe it's going to happen in a few weeks."

Rogers says he sees two scenarios playing out. If the U.S. dollar continues to fall at this time when it should be rallying, he said the bottom will fall out on it and he would quickly sale, adding if that happens, he hopes it's in time for him to remain solvent.

He noted, "if it goes down 3% or 4% from here, I would have to sell and get out and hope I'm still solvent."

The other scenario would be if the dollar is able to hold, which in that case it could jump as high as 20 percent, according to Rogers.

"We're at a moment of truth for the dollar," he concluded.




Source

Jim Rogers Picking for New Commodity-Based Index

Jim Rogers has been chosen by A unit of China's CITIC Group and Spain's Banco Bilbao Vizcaya Argentaria (BBVA) to pick companies operating in the resources sectors.

Called the Rogers Global Resources Equity Index (RGREI), it'll include companies in agriculture, alternative energy, forestry, energy and metals, and mining, according to Gao Ang, COO of CITIC Carbon Asset Management, a new division of CITIC.

The index will represent a total of 200 stocks when it's filled.

BBVA head of equities, Eugene Lee, said there is already an institutional base of clients in Latin America with a strong interest in investing in a commodity index like the Rogers Global Resources Equity Index.

Rogers has his own index fund, the Rogers International Commodities Index (RICI), and has lent his name to a Macquarie index fund as well - the Macquarie and Rogers™ China Agriculture Index.

Jim Rogers Says Producers are New Money Centers

Talking recently at the Reuters 2011 Investment Outlook Summit in New York, Jim Rogers continued his mantra of high gold and commodity prices, along with the probability financial centers like London and New York will shrink in influence, and countries with strong commodity and/or raw material resources and focus will flourish.

Rogers maintains his prediction of gold rising above $2,000 an ounce and the Chinese renminbi becoming the strongest currency in the world.

"The city of London and Wall Street are not going to be great places to be in the next two or three decades. It's going to be the people who produce real goods," said Rogers.

"Throughout history we've had long periods when the financial centers were in charge," he added. "But we've also had long periods when people who produced real goods were in charge - the farmers and the miners."

Those in the media interviewing Rogers always smile at Rogers when he mentions raw materials, and especially farming, as a major force going forward, thinking he's joking with them when in reality he's totally serious.

Rogers cited Canada as a place to invest and which will continue to grow strong. He didn't mention them this time around, but Brazil is another obvious country which will strongly benefit from commodities, along with Australia, if they don't impose draconian taxes and regulations on miners.

The U.S. could also become important in the area of natural gas, especially as exporters, but they'll have to build out their infrastructure in order to take advantage of the soaring demand for natural gas.

Jim Rogers Says Let Ireland Go Bankrupt, Would Learn Lesson

Once again billionaire commodity expert and investor Jim Rogers has it right, as he calls for Ireland to be allowed to go bankrupt in order to learn a lesson concerning their irresponsible borrowing, and for Europe to show they're serious about the euro remaining a legitimate and strong currency.

The European Union will have none of that, and is going to borrow over $100 billion to shore up the Irish banking system, and some are calling that not enough.

Rogers said it's time for banks and countries around the world to learn to not spend more than they can pay back. While an obvious and responsible suggestion, there are very few that take heed to the simple advice of Rogers.

You wonder why so many individuals are in difficult times, as they simply follow the lead of financial institutions and countries and continue to borrow far beyond their means.

Rogers has been consistent with his call on the European Union, having called for Greece to be allowed to go bankrupt, which now has somehow discovered, after being bailed out, that they understated the size of their deficit.

This will continue on until someone has the integrity and strength to say enough is enough.

You continue to hear politicians say they must bail out these countries to preserve the EU, not even understanding that be bailing out the countries and making the euro weak and a joke, they're destroying it themselves.

Goldman (NYSE:GS) Supports Bernanke Debacle as World Opposes it

Anyone who understands the cause-and-effect of printing money, or as Fed chairman Ben Bernanke now likes to label it: quantitative easing, knows the consequences of inflation, debasing the dollar and creating unsustainable debt levels. For some reason Goldman Sachs (NYSE:GS) has come out in support of Bernanke in this matter. Figures.

Even though Bernanke admits the debt in the U.S. is indeed unsustainable, he continues to create it through printing his money. As commodity investor Jim Rogers has stated a lot: he doesn't know how to do anything else.

Major economies like China, Germany and Brazil have been highly critical of the decision.

Goldman chief economist Jan Hatzius said in a note to clients, "The move will spur gross domestic product growth and reduce the risk of deflation.

“The widespread hostility to the Fed’s actions is misplaced,” Hatzius wrote. “Downside risks to the economic outlook have declined significantly. U.S. inflation is unlikely to become a problem for years.”

Of course it's simplistic to imply the only concern is inflation, as there are many other concerns, including the fact it didn't work before, and is playing havoc with the economic recovery in emerging economies in relationship to their currencies.

Hopefully Ron Paul and a few of his new allies in Washington will work hard to help people understand the disaster the Federal Reserve is, and successfully force an audit upon the central bank.

For gold investors, it's just another good reason to remain faithful to the yellow metal, as it's going to continue to go higher because of the poisonous monetary policy of Bernanke and the Fed.

Marc Faber, Jim Rogers Continue to Hold Gold

Confusion over the daily fluctuation of the markets based on little snippets and tidbits of news can drive even the most astute trader or speculator batty, but in the case of gold, investors and pundits like Marc Faber and Jim Rogers aren't confused at all, and they both say they have no intention of selling their gold, and are always on the lookout for dips so they can acquire more.

Without getting into too much detail, the reasons these guys continue to do this is there overall understanding of the macro-economic circumstances.

If you understand the macro-economic situation affecting any investment, and gold in particular, the daily ins and outs of the market are largely irrelevant, unless you're trying to make a quick killing, which hopefully you're not. Even the day traders can't do that great in attempting to time the market, and very few are that successful, even though there is always the glamor attached to being involved in it.

In general, macro-economics as it relates to gold, will deal with issues like national debt, inflation, paper currency and the practices of central banks; all of which the above are highly affected by.

For example, around the world now central banks refuse to implement austerity measures into their practices, as they're committed to bailing out whatever major problems occur in order to save the various economies or industries they deem in need of saving.

That means they'll have to print money and government debt will continue to rise to astronomical levels.

Another indicator is job creation in the private sector, which is just above zero in the United States, with the government being the almost sole creator of jobs, which means they're propping up the economy while creating nothing of value that has a chance to last.

This is why Faber and Jim Rogers continue to hold gold. The central banks and governments have become addicted to these practices even more than in the past, and it's not sustainable by any stretch of the imagination.

Consequently, trust in paper currencies is eroding around the world, and the only reason the U.S. dollar is stronger is because the euro isn't. It's not because it has some type of safe or mystical power which makes it a place of safety. It's only relative in the sense when you compare to the condition of most other currencies in the world, which for the most are even more unstable.

So within these general parameters, gold can be counted on to continue to move upward in price, no matter what type of temporary correction will take place.

Some clueless analysts and pundits try to make it look like gold is in a bubble, but it's not even close, as until the general population gets into the gold market and drives up prices without knowing or understanding the fundamentals, similar to clueless house flippers and those with HELOCs in the housing bubble, where they kept refinancing or bidding up the prices of houses like it was a game with no end, not understanding it had become a ponzi scheme which was about to come falling down around their heads.

It seems the average or everyday investor hasn't even began to invest in gold, so until that happens it won't be those who bid up the price of gold, but the things mentioned above.

There will of course be the traders moving in and out of the market which will drive gold prices up over short periods of time, and then the price gets a correction when they sell their positions to cover other unrelated investments they've lost on.

Only when the price of gold goes up at unrealistic levels for no apparent reason will be be in a bubble, and that won't happen until far into the future, as people in general still stay away from the yellow metal, as they fear that which they don't understand, and only after years of financial reporting on it and they feel safe, will they enter in. At that time the market will be close to a top, and then they'll start to bid gold prices up based on nothing else than everybody has caught gold fever.

So that's when and how a gold bubble will occur, and until then we should feel confident gold prices will continue onward and upward.

This is why Marc Faber and Jim Rogers, among others, continue to hold and invest in gold, and will continue to do so for many years to come.

Jim Rogers: Gold Going Much Higher

Commodities investing expert Jim Rogers continues his mantra on being a bull for most commodities for the next decade or so, and he reiterates that position with gold, which he says will continue to be considered a safe haven again inflation from the weakening of paper currencies.

With faith in fiat currencies continuing to weaken, gold has reached record levels against a number of currencies, including the euro, US dollar, Swiss franc and British pound.

In a recent interview with Reuters, Rogers said this about his outlook for gold: "I certainly expect gold to go much higher over the next few years. Paper money is going to be debased and the price of real assets will be enhanced."

Rogers doesn't just believe this about gold, but many of the other raw materials as well.

Along with a growing number of analysts and economists, Rogers knows the extraordinary and unprecedented level of debt being incurred by nations will be devastating to currencies and result in strong inflation.

Once the overall market begins to understand how large the credit expansion has been, we could see commodity and gold prices surge beyond levels some that are optimistic even think they will.

Jim Rogers: Keep Your Gold

Jim Rogers on Gold

Jim Rogers reminded investors in gold to hold onto it and not sell, as he maintains gold could go as high as $2,000 over the next 10 years, and those discarding it will miss out on a lot of profits.

Of course it also must be considered as the best place of safety at this time, and there is no paper currency close to it for those who understand the staying power of gold.

For the first time in a long time, gold has fought the U.S. dollar as the haven of choice, and even when the dollar goes up, there have been days where gold has risen with it, defying the usual inverse relationship between the two where gold will go up when the dollar goes down, and the opposite.

When they go up together, that means a sizable number of people and/or institutions consider gold to be safer than the dollar, and that's quite a change from the normal behavior of those looking for safety.

Jim Rogers: Don't Buy Gold

Jim Rogers who is a bull on commodities throughout the next decade or possibly more, has stated recently that he wouldn't acquire any more gold at this time, as the price has surged and could go sideways for awhile.

At the same time, Rogers said he won't be selling any of his gold for some time either.

Along with the high price, speculators have now entered the gold and oil markets, and they could drive prices up for no reason, and those investing in gold could take a hit as a result, as it may not be market forces but speculation moving the prices.

Rogers advises commodity investors to invest in commodities at lower price levels like natural gas and silver.

Jim Rogers: Speculators in Gold and Oil

Jim Rogers says gold and oil attracting speculators

Jim Rogers said in a recent interview with CNBC that gold and other precious metals have made some big upward moves since 2009 and for now should "consolidate and rest."

While reiterating he owns gold, he believes speculators have now entered the market for gold and oil, and for now he thinks it's best to sit on the sidelines while they do their speculating.

What does Rogers like at this time? "I like to buy what's cheapest. Silver is cheaper than gold, on a historical basis; natural gas is cheaper than oil," said Rogers.

Gold Prices Rise to $1,500

As measured in U.S. dollars, gold prices surged to another record level, surpassing the $1,500 a troy ounce for the first time in history.

Investing legend Jim Rogers stated that while he wouldn't buy gold on these highs, he's also not betting against it either. Rogers is of course hoping it will drop, having said recently he would buy more gold if there is a drop or correction. For now he's sitting on gold.

Even though this is a record gold price high for gold as measured by the U.S. dollar, in terms of other currencies, it still has a way to go before enjoying that distinction.

In reference to the Australian dollar, it isn't even close to a gold price high, as it's still 30 percent lower than that currencies record, and against the yen it's 15 percent less than that gold price record.

This is a much a result of the collapsing U.S. dollar as it is concern over inflation and the uncertainty of the economic conditions.