Very Interesting....
Jim Rogers on Chinese bubbles and Bernankeâs printing press
The former sidekick of George Soros is never short of an opinion - and in this three-part View from the Markets video interview on the FT Jim Rogersâ doesnât disappoint.
Some highlights:
The dollar is a flawed currency. America owes the world $13,000bn - a figure that is growing by $1,000 every 15 months. Rogers finds this terrifying and cannot for the life of him think why anyone would want to own a currency that has been debased in this way. He is quite happy to blame Fed chairman Ben Bernanke:
The head of the central bank has been printing money since he got there. This is a man whose whole intellectual career has been spent studying the printing of money â and now America has given him the printing presses. I donât want to be in a currency like that.
Bernanke, Rogers says, has been a disaster - witness his decision to bale out his friends on Wall St in the summer, cutting interest rates because the stock market had fallen 6 per cent.
Whatâs he going to do when the market is down 36 per cent? Whatâs he going to do when thereâs a real crisis?
Chinaâs stock market is a potential bubble - but, in Rogersâ view, it isnât a bubble as yet.
If it keeps going up - say by another 40 per cent by February - then I will have to sell, because then we will have a fully fledged bubble.
I donât want to sell â I want my daughter to own my Chinese shares some day.
This is from a man who has described the Chinese as the greatest capitalists on the planet. He first bought Chinese stocks in 1999 and says he has never sold a Chinese share. But he is worried the countryâs stock market is now headed the way of Japan 20 years ago.
If something happened that were to bring the market back down 30 or 40 per cent, then Iâd be a buyer of shares in China. And that would be very good for China - which may sound strange from someone who owns Chinese shares. But if they donât then it is likely to be a bubble - and bubbles always end very badly.
Jim Rogers on Chinese bubbles and Bernankeâs printing press
The former sidekick of George Soros is never short of an opinion - and in this three-part View from the Markets video interview on the FT Jim Rogersâ doesnât disappoint.
Some highlights:
The dollar is a flawed currency. America owes the world $13,000bn - a figure that is growing by $1,000 every 15 months. Rogers finds this terrifying and cannot for the life of him think why anyone would want to own a currency that has been debased in this way. He is quite happy to blame Fed chairman Ben Bernanke:
The head of the central bank has been printing money since he got there. This is a man whose whole intellectual career has been spent studying the printing of money â and now America has given him the printing presses. I donât want to be in a currency like that.
Bernanke, Rogers says, has been a disaster - witness his decision to bale out his friends on Wall St in the summer, cutting interest rates because the stock market had fallen 6 per cent.
Whatâs he going to do when the market is down 36 per cent? Whatâs he going to do when thereâs a real crisis?
Chinaâs stock market is a potential bubble - but, in Rogersâ view, it isnât a bubble as yet.
If it keeps going up - say by another 40 per cent by February - then I will have to sell, because then we will have a fully fledged bubble.
I donât want to sell â I want my daughter to own my Chinese shares some day.
This is from a man who has described the Chinese as the greatest capitalists on the planet. He first bought Chinese stocks in 1999 and says he has never sold a Chinese share. But he is worried the countryâs stock market is now headed the way of Japan 20 years ago.
If something happened that were to bring the market back down 30 or 40 per cent, then Iâd be a buyer of shares in China. And that would be very good for China - which may sound strange from someone who owns Chinese shares. But if they donât then it is likely to be a bubble - and bubbles always end very badly.