Jim Rogers of Jim Rogers Commodity Fund recently conducted an interview with NDTV with a telephone call from Melbourne, Australia.
There was a big sell-off across all asset classes. The spokesman from the Jim Rogers Commodity Fund says that the world is realizing that there are a lot of problems. It was a charade in America and in Europe, and now people are starting to face reality.
A lot of asset classes will continue to go lower for a while. This is not a one day thing. This has been building for a while. People have been worried about stock markets for years. Everybody is afraid of everything.
Is what we are seeing comparable to what we saw in late 2008? The Jim Rogers Commodity Fund maintains that ti may not be as dramatic next week or the next. But in the next year your two there are going to be some huge sell-offs. America is in too much debt. The overall situation in the world has gotten worse, not better.
Everything happening in Europe is a mistake. It is making the situation temporarily better, but the long-term situation continues to deteriorate. The solution to too much debt isn’t more debt. It is very painful, but we can’t continue pushing the problem into the future, where it just gets worse and worse and worse.
When the real panic hits, it is going to be worse than 2008. The Jim Rogers Commodity Fund reminds us that in the last 3 years America has quadrupled its debt and the Federal Reserve has tripled its balance sheet. Governments are trying to push the problems out into the future. The next downturn is going to be more brutal and worse because the overall situation is much worse.
Governments are going to print money. Everyone knows that, and they are panicked. The only thing that the American central bank knows how to do is to print money. The more money that gets printed, the worse inflation gets.
In the 1970s we had terrible world economies, but the Jim Rogers Commodity Fund benefited from a huge bull market in commodities. Whenever you have shortages of supply and money printing, the on;y way to protect yourself is to own real assets. Whether it is corn or silver, you should own commodities. The world we are going to be in is one of printing money and shortages of commodities.
The supply of everything is declining. In the 1970s, we had demand for everything, and there was a huge bull market in commodities because there was no supply, and there was too much printing of money. We might see the same thing this time around.
In India, Jim Rogers is short an ETF of Indian stocks. But he is short in many emerging markets. The ETF he owns has short positions in many emerging markets around the world, not solely in India.
