Wednesday, December 28, 2011

The biggest risk in China would be an inflation not a deflation scenario

Jim Rogers: It’s a terrible idea. They need to crack inflation. They’ve got a serious inflation problem. Either they have to beat inflation internally or they have to make the currency convertible. They are apparently not going to make the currency convertible. Now if they continue with inflation, then they are going to have even more problems a year from now, two years from now. The biggest risk in China would be an inflation not a deflation scenario with property prices falling so much? The worst problem is that their inflation comes back – they have all of this money trapped inside of China and its sloshing around and it goes back into real estate. I mean they did this once before three or four years ago. They tightened up but then they got scared and then they loosened up again before they cracked the real estate [problem] and they may do it again – that would be a serious problem. - in The Street.com

Who is Jim Rogers ?

James "Jim" Rogers was born in Oct. 19, 1942 and grew up in Demopolis, Alabama .Jim Rogers started trading the stock market with $600 in 1968.In 1973 he formed the Quantum Fund with the legendry 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%. They ran what is considered to be one of the first truly global macro hedge funds. . In 1964 he got his first job on Wall Street at Dominick & Dominick in the summer between high school and Yale University, that's how he got his first experience with stocks and bonds. He immediately fell in love with the job. After Oxford, he returned to the U.S. and joined the army in 1970 he returned to Wall Street, working again with Dominick & Dominick. That same year he joined Arnold S. Bleichroeder, where he met George Soros, and together founded the Quantum Fund. This has opened a new era of global macrotrading and inspired numerous imitations and spin-offs. In the book "Money Masters of Our Time," Jim Rogers writes about that time "the most important thing in my life was work. I did not do anything until I had completed my work." To emphasize this professional ethic , it is good to remember that he did not made any holiday for ten years. In 1980, Jim Rogers has decided to "retire" at 37 years. Since then he has spent much of his time traveling and supporting the causes of philanthropic and taking on many high profile roles in the media. However, he continues to be an active investor and media commentator

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 "