'We never got out of the first recession,' says Jim Rogers
Source: BI-ME , Author: Poste by BI-ME staff
Posted: Wed August 25, 2010 10:24 pm

INTERNATIONAL. Legendary global investor and chairman of Singapore-based Rogers Holdings, Jim Rogers said the global economy is at the risk of prolonging a recession after reports over the past two days showed US home sales plunged by a record and Japan’s export growth slowed for a fifth month in July.

Speaking to Bloomberg in a phone interview from Singapore on Tuesday, Rogers said:  “We never got out of the first recession.”

“If the US and Europe continue to slow down, that’s going to affect everyone," he added.

The legendary investor doesn't subscribe to the idea that China can lead the world out of recession.

"The Chinese economy is 1/10 of the U.S. and Europe, and India is a quarter of China, they can’t bail us out,” he said.

Rogers advised China and other global economies should increase interest rates to contain a surge in inflation.

“Everyone should be raising interest rates, they are too low worldwide,” he said.

“If the world economy gets better, that’s good for commodities demand. If the world economy does not get better, stocks are going to lose a lot as governments will print more money.”

Rogers has been saying, in recent interviews with various media channels,  that there will be another recession, probably in 2012.

While he doesn’t call this a double dip, he does say that “the next time it’s going to be worse because we’ve shot all of our bullets.”

"With zero interest rates and huge government deficits all around, policy options are definitely more limited," he recently said.

In a recent interview with Campaign for Liberty, when asked what he would do if the was President, the legendary investor said: I would abolish the Federal Reserve. I would cut taxes. I would cut spending in a draconian manner. A very draconian manner. The idea that you can solve a problem of too much debt and too much consumption, with more debt and more consumption, defies comprehension".

Rogers has spent a career being one step ahead of mainstream investment thinking.  He rose to fame after co-founding the now-closed Quantum Fund with George Soros nearly four decades ago. During his ten years with the fund, the portfolio gained more than 4,000%, while the S&P rose less than 50%.

The Quantum Fund shot to fame after making more than US$1 billion betting against the British Pound in the early 1990s.

RELATED ARTICLES

Jim Rogers says leave the market alone, abolish the Fed and cut spending

Jim Rogers says wheat, agricultural commodities set for steep price rises

Jim Rogers likes rice, sees food catastrophe looming

Sell your house, buy a tractor and start farming, says Jim Rogers

"Fed will print and print and print until the final crisis," says Marc Faber

Marc Faber sees collapse of Capitalism as we know it

Marc Faber expects a return to massive quantitative easing by October

Greenspan says we now face 'the most extraordinary financial crisis ever seen'

Jim Rogers says at 70% below its peak, silver is better investment than gold

Oil is good long-term buy, says Jim Rogers

Jim rogers is long the Euro, still sees gold at US$2,000

'We're going to have zombie capitalism for the next 15-20 years,' says Jim Rogers

 

 

MIDDLE EAST BUSINESS COMMENT & ANALYSIS

date:Posted: August 21, 2014
UAE. "The establishment of QIFs aimed at sophisticated, high-net worth investors is a welcome development which reflects the fact that a one size fits all approach to regulation is not appropriate."
date:Posted: August 20, 2014
UAE. Rising geopolitical tensions and slowing global growth; GCC markets remain steady in spite of increased global volatility; Commodity prices soft on China bank data.
date:Posted: August 20, 2014
UAE. "In the short term, Erdogan's election signals a sign for continuity for Turkey. However, in the medium to longer term, questions remain. As in any political arena, a concentration of power and reduction of checks and balances carries negative risks."
INTERNATIONAL. U.S. special operations forces made a failed attempt to rescue journalist James Foley and other Americans held hostage by Islamic extremists in Syria earlier this summer, the White House said in a statement.
dhgate