Classic Jim Rogers - obviously he is on the same train as Marc Faber in terms of printing presses on overdrive [May 15, 2009: This was a Central Bank Printing Press Rally] As with Faber, Rogers is mostly stuck on CNBC Asia or Europe... don't want to disrupt green seeds stateside. He is not short or hedged in anything at the moment, but buying Japanese Yen.
The next crisis in his eyes are currencies which makes sense since sovereign states have taken much of the bad debt from the banks and piled them onto their own balance sheets (or if you will, their central banks)... i.e. toxic is taken from private parties and splayed onto the backs of the public. Capitalism! Wait, Socialism! Wait... ok... who knows what we call it ... I call it Reverse Robin Hood = steal from the peasants to give to the Lords.
All earlier Jim Rogers posts can be found here.
"Mandy, you give me $5-6 Trillion dollars and I'll show you a very good time"
The stock market may hit new lows this year or the next as the current rally has been largely caused by the money printed by central banks and fundamental problems remain unsolved, legendary investor Jim Rogers told CNBC Wednesday.
His views echo those of renowned bear Marc Faber, who told CNBC last week that the rises in share prices did not mean the world was embarking on a path of sustainable economic growth.
"I'm not buying shares if that's what you mean. Not at all," Rogers told "Squawk Box Asia."
Governments have not solved the essential problems that caused the crisis but instead they "flooded the world with money," according to Rogers. Trying to solve the problem of too much consumption and too much debt with more consumption "defies belief" and will not work, he said.
The price of oil is also likely to remain high despite the fact that the recession is taking its toll on demand, he said.
"You know supplies worldwide are declining at the rate of anywhere from 4 to 6 percent a year, yes, demand is down at the moment but in longer term, unless somebody discovers a lot of oil very quickly, the surprise is going to be how high the price of oil stays, and how high it eventually goes," Rogers added.
The next financial meltdown will be in the currency markets
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