Gold could go lower in 2012

Jim Rogers : Well, I own gold. I wouldn´t buy gold right now. Gold has been up 11 years in a row, which is very, very unusual for any asset class. So it´s in the process of correcting at the moment. I would expect this direction to go on for a while, and I would expect that there will be chances to buy gold lower in 2012. - in Eleconomista

2013 is definitely going to be a very bad year in the US

Legendary Investor Jim Rogers said in an interview with the Spanish magazine El Economista that 2013 is definitely going to be a very bad year in the US :"You´re definitely going to show big trouble ahead, and make sure you understand in the next few years you´re going to continue to see financial problems, and they´re going to be worse. The world had a problem in 2002, which was worse in 2008, in which the debt was so much higher. The next time around whether it´s 2012, or 13, or 14, I don´t know, it´s going to be much, much worse still but the amount of debt that´s very, very, very high. So the same as everybody the next time will be worse in America. America has had economic slowdown and recession every four to six years beginning with the republic, so we?re certainly overdue at the end of 2011, 12, 13, sometime. " Jim Rogers said "You know 2013 if we last, if we make it to 2013, 2013 is going to be worse. There´s an election in America in 2012. The government is going to extend as much money as it can to win the election, and the people who get that money are going to be better off because there´s a government throws billions of dollars out into the economy. Somebody´s got to get that money. But those people and their friends are going to be better off. But the overall situation continues to get worse because the debt goes higher and higher and higher, and the rest of us ultimately are going to be worse off. And certainly by 2013 when all of that extra spending for the election stops, 2013 is definitely going to be a very bad year in the U.S. and in the world." He added - via Eleconomista.es

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

Jim Rogers on Chinese Economy Hard Landing

Jim Rogers: Some parts of the Chinese economy are going to have a hard landing. The Chinese for two years now have been tightening up. They have raised interest rates six times. They have raised reserve requirements a dozen times. Just recently they started to loosen this up a little bit but they are trying. They are trying to bring down real estate, they are trying to make real estate developers go bankrupt so you are going to have a hard landing to use your terms in things like property in China. But other parts of the Chinese economy are going to continue to boom: water treatment, agriculture, farmers are not going to know that the real estate speculators in Beijing and Shanghai are going bankrupt because they are working too hard and making too much money so you are going to have sectors of the Chinese economy with serious problems but it’s not the whole Chinese economy. It’s not like it was here. Some have argued that China has taken the first steps to start pumping more money into the system by cutting reserve requirements, that they will continue to do so in 2012 especially when the government transitions leadership in late 2012, do you think it’s going to happen? Rogers: Well, you are right. They have loosened up twice in the last month or two. I wouldn’t if I was China but I am not China. It looks as though they are going to start loosening up. I guess the real estate speculators are calling up and saying save me, save me, save me and they are starting to listen. - in The Street