JIM ROGERS : Chinese Housing Bubble can only be fixed by making the Yuan convertible

 Jim Rogers : The Chinese know that they have to have a freely convertible currency in order to continue to develop as a world economic power and as a world power. They have been making some moves in the past five years – not so many in the last year or two, but its currency has become much more convertible. They are continuing in that way.
I would have thought they would have made it convertible by now, so I’m not very good at the timing either. There’s no question that it’s going to happen. There’s no question they do continue to make movements in that way. You can now do business, and the neighbouring countries can now do business, in Renminbis. They don’t have to use other currencies.
When it’s going to happen, I don’t know. It could happen any day or it could be another year or two. The fact that the Euro is down a lot of course is another factor that the Chinese have to consider. On the other hand, the Chinese do have these big bubbles in real estate developing in their own country. One solution to their own internal inflation and internal real estate bubble would be a freely convertible currency. But, they don’t listen to me; they don’t listen to anybody except themselves!


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%.