Jim Rogers outlook for 2009 in an interview at Bloomberg (hat tip Barry Ritholtz )
Some interview highlights:
-This is probably gonna be the worst since the second world war…it’s gonna be very bad for all of us.
-In 1929….the politicians around the world started to make horrendous mistakes which turned it into a Depression, it would have been a normal recession otherwise…everybody got into act and that seems to be happening this time too.
-I am certainly prepared for the worst and if it happens I hope I take the appropriate actions…
-Our new President Mr Obama has said…he is going to tax capital. This is a period where the world is desperately short of capital what a genius! And then he is going to protect America, protectionism lead to the great depression in the 1930s, so we’ve got a man now who says, he is in favor of protectionism and taxing capital. If that happens then…it’s all over.
-[on world economic order] If America continues to make mistakes you’re gonna see that quick a transition.
-I did move to Asia because I see enormous opportunities there…I am convinced that China is the great country of the 21st century.
-The American government is printing gigantic amounts of money, that in the ends is going to be the worst problem…it has led to inflation and in some cases to runaway inflation
-Faith is a terrible way to invest…I hope I don’t invest on faith, at least invest on facts.
-I like to own things forever
-Oil is going to make a huge comeback when it does. The international energy authority, who makes the studies of much of every oil field in the world came to the conclusion that oil reserve are declining at the rate of 7% a year…in 15 years there won’t be any oil left! Unless somebody discovers a lot of oil quickly at very accessible areas, the price of energy has to go to the roof again!
-Basically agriculture is agriculture and the force of one affects the other…so they are interconnected but maybe not directly
-You know, we have now nearly a shortage of everything in agriculture…shortage of tractors, tractor tires, fertilizers, seeds, farmers…
-I see a rally for awhile into 2009…then I expect to see more problems again in the markets into 2009. So, I am holding off these things as prices go up, I hold off buying if I see selling climaxes again or panic selling then I’d probably buy more.
-the last bubble left…the Federal Reserve is buying bonds, everybody’s pumping bonds like crazy, it’s clearly a bubble.
-The best way to buy China is to buy commodities, because you don’t have to worry about corporate governance or money supply…
-Mao Tse Tung ruined agriculture. The Chinese government is now spending hundreds of billions to repair agriculture, infrastructure, rebuilding China….
-Many areas of the Chinese economy which are going to be unaffected by the recession in the West, they won’t care what happens in the West.
-I wish they [Chinese Central Bankers] were running our central bank instead of Dr. Bernanke who doesn’t have a clue what’s going on. So far the Chinese have done a better job.
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