Jim Rogers started trading the stock market with $600 in 1968.In 1973 he formed the Quantum Fund with the legendary investor George Soros before retiring, a multi millionaire at the age of 37. Rogers and Soros helped steer the fund to a miraculous 4,200% return over the 10 year span of the fund while the S&P 500 returned just 47%.

Wednesday, December 1, 2010

High Inflation Sends China Food Prices Soaring

High Inflation Sends China Food Prices Soaring


As China experiences high inflation - with rates hitting four and a half percent - the price of produce at markets and retail outlets across the country has gone up drastically.

Chinese citizens are wondering how they will continue to afford to buy produce when staples like green peppers and carrots have tripled or quadrupled in price.

The Chinese regime promised to enforce price controls and to crack down on speculators, but those working the markets say the price hike is a vicious circle that leaves everyone out of money.

[Wholesale Merchant from Henan]:
"When I bought this green pepper I bought it at 0.9 yuan. Do you know how much it is here? If you bring it here, the price goes up to 1.1 to 1.15 yuan. When you sell it here, you can only sell it here at 1 yuan to 0.9 yuan. So I lose around 4,000 to 5,000 yuan."

Beijing resident Bi Guangsheng, is skeptical about the regime's ability to control prices.

[Bi Guangsheng, Beijing Resident]:
"The price level has not been controlled. The regime says one thing, but the merchants do not listen. If the regime adopts a policy, then merchants will work out countermeasures to deal with it."

China has had costly experiences with inflation before, with soaring prices followed by unrest and even the end of dynasties.

Jim Rogers : I might buy more US dollars

Jim Rogers :"...I am always looking at everything to buy and sell. I watch the markets here everyday, every week, every month because if something happens, I want to know and I told you that I was buying some US dollars because everybody was extremely pessimistic on US dollar. I might buy more US dollars if this is going to be serious (Jim Rogers is speaking here about The possible war in Korea). Not because I am optimistic about the dollar, but because for whatever reason, people jump into dollars when there is war..." via ET Now
Jim Rogers "the 19th century was the century of the UK , the 20th century was the century of the US , the 21 st century is going to be the century of China "
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