Jim Rogers Says Euro Zone To Pay 'Terrible Price'

Billionaire investor and commodities expert Jim Rogers said in an interview on CNBC today that the euro zone will pay a "terrible price" going forward no matter if the European Central Bank (ECB) launches a large acquisition of bonds or not.

Rogers said: "These guys have been saying the same old garbage for a long time. It's not a game-changer - it's good for the market for maybe a month. The debt keeps going higher and higher and eventually we'll all going to pay a terrible price."

As for what he considers a misguided idea for investors to get back into buying some riskier assets because of the announcement, he said this:

"It's not an opportunity to make money for me. This is not good for the market and it's not going to last. Every three or four months they have a summit and they say: Ok guys, everything is ok now. The market goes up. But we're getting a little tired of this and the market is getting a little tired of this," Rogers noted.

As for the commodities bull market Rogers has predicted and continues to assert will last for a long time, he said this:

"The bull market in commodities will end some day - but some day is a long way away.

"Commodities have been correcting for a while. Now everybody knows they're throwing money into the market, and history tells you that when they do this the way to protect yourself is to own real assets whether it's silver or rice. If the world economy gets better, I own commodities because there's shortages developing. If it doesn't they're all going to print money. It's the wrong thing to do, but it's all they know to do."

There is also a growing belief that the Federal Reserve is poised to introduce another round of quantitative easing in the United States, and the central bank of China is also believed to be ready to provide more stimulus in its slowing economy.

Over the long term, when added together, it'll be a powerful impetus for numerous commodity price increases.

Commodities: Economic Crisis Part 1 of 5

Points covered in video:

Bailouts

Not good for America or world

Bailing out those making bad decisions

Incompetent people should be allowed to fail

Competent people or businesses can start over from strong base ... system grows again

Bailouts are taking assets from the competent and giving them to the incompetent

Entire system is weakened as a result

Incompetent keep bonuses because taxpayers are paying the bill

America as we know it will not exist any more

People responsible haven't even lost their jobs

Previous round of people that did lose their jobs walked away with millions

Money has shifted to Asian economies

Obama has no answer but wants to spend even more

It took 200 years to build a $5 trillion debt in America, in less than a year it stands at least at $15 trillion

Must allow incompetent to fail

Someone has to pay for the last 10 years of excess

18 years after Japan refused to let anyone fail, it still hasn't recovered near to levels at that time

Amazingly, Alan Greenspan went to Japan about 18 years ago and told them they needed to let things fail. He forgot his own correct advice

America now doing the same thing as Japan

Alan Greenspan main culprit of current economic crisis

Should be very worried about future of America



Part One Part Two Part Three Part Four Part Five

Commodities: Jim Rogers Video Economic Issues

Jim Rogers video on commodities and other economic concerns.

Commodites: Jim Rogers Agriculture Best Sector

Jim Rogers gives a great lesson in economics, current crisis, and why agriculture will be the place to invest in the years ahead.




Rogers believe the most financially successful people going ahead will be those that gravitate toward the agriculture sector, and in many cases those who choose to farm.

Commodities: Jim Rogers on "Inflation Holocaust"

Talking on CNBC Friday, billionaire investor Jim Rogers, CEO of Rogers Holdings and commodities expert, said we are facing an "inflation holocaust" because of government interference in the markets. He's right of course, as governments will have to issue more debt and print more money in an attempt to not allow the market to clean itself out as it has for a "few thousand years."

It is amazing to see the government to take these unprecidented steps in order to make it look like it has some value to the market. It's main and really only purpose in this arena should be to enforce contracts. Nothing else.

But as Rogers and many others are pointing out, this is in reality setting us up for an inflation disaster as the artificial propping up of poorly run companies will make us all pay a lot more for goods and services in the long run. The government and politians are counting on the general population to forget this as this go ahead in time.

Rogers added that we should simply allow businesses and people to go bankrupt in order to clean out the excesses and unhealthiness in the markets. That is how it's always been done in the past, and each time things start over again with many helpful lessons learned from the mistakes made.

In a desperate attempt to make prove they have relevancy to the general populations across the world, governments and politicians are scrambling to interfere and tread in places they have no idea of the consequences of their actions.

There is nothing more short-term in thinking than what is being wrongly foisted on people in American and across the world at this time. As Jim Rogers says, we are setting ourselves up for an inflation holocaust that will happen based solely on the actions of the U.S. governement, and other governments at this time.

Since when don't human beings have to go through failures and mistakes? When have we designated taxpayer dollars of responsible people to be used to bailout finance and business leaders for the poor decisions they've made?

As Rogers concluded concerning the upcoming G7 meeting where government leaders of the stronger economies are getting together in order to attempt of figure out a solution, "What they (G7 leaders) need to do is go down the bar and leave the rest of us alone."

Referring again to the usual solution by governments, printing more money and offering more debt will do more harm than anything else. It simply needs to be allowed to play out as it usually is. There's nothing the G7 countries will be able to do other than that.

These are markets made up of billions of actors and consumers. Nobody, no matter how much they try to convince us, is able to centrally plan or salvage this mess. Socialism has already proven itself a failure, and this is nothing more than corporate socialism.

As many people know in their individual lives, when they live in excess they will have to go through some real pain in order to overcome those excesses. For someone to interfere with that isn't kindness, but a form of hate, as they enable the person to continue on in their folly.

It's no different with government interference in the marketplace. To shore up poor management and irresponsible decisions isn't a form of help, it's only reinforcing terrible choices and behavior, and possibly setting the rest of us up for more and more significant pain in the near future.

See Video Here

Rogers maintains commodities will continue to be a good place to put your money. We're simply on pause for the time being.

Jim Rogers: People Don't Understand Commodities

In a recent talk by Jim Rogers while attending the introduction of the Birla Sun Life Commodity Equities Fund, he said that people at this time, overall, have no understanding of commodities.

He said concerning the current phase commodities are in: "Bull markets happen when people begin to understand about a particular asset class. That’s what is going to drive a long bull phase in commodities. Out of the thousands of mutual funds in US, only a few hundred invest in commodities. That is going to change.”

Rogers added that commodities are in a similar phase stocks were about 30 years ago, and said it's being spurred by supply and demand. "Supply down... demand going up? That’s what I call a bull market.”

Rogers is particularly bullish on agriculture within the overall commodity field. He also has a stake in Swiss francs, the Japanese yen, and the Chinese yuan.

While they are not being look upon as investment options at this time, Rogers is also bullish on coffee, sugar, cotton, zinc and silver over the long haul.

Rogers also encouraged the Indian crowd that if they wanted to become rich they should take up farming. He wasn't kidding.

Jim Rogers on US Economy, FED, Ron Paul, China, US Dollar

For this first post on Commodity Surge, I thought I'd include this interview in late November 2007 with commodity expert Jim Rogers.

Keep in mind when he's talking about what has real possibilities in the commodity market, that it's somewhat dated information.

Other than that, the underlying foundation of why he makes the comments he does is extremely important and valuable to learn.