BRICs look for more diversity in reserve currencies

BRICs look for more diversity in reserve currencies

The world ‘s major emerging economies the BRIC nations Brazil Russia India and China are looking at buying each others bonds, and a greater IMF role, to minimize reliance on the U.S. dollar in their talks in Ekaterinburg. They call for bigger say in Monetary Institutions , The BRIC Bloc is born to ” confront failures in the financial systems” after the collapse of the US dominated financial system these countries want a greater say in how things are run and they want a smaller role for the US Dollar , the BRIC countries hold trillions of dollars in foreign currency reserves so they would also suffer if the dollar falls , one option is the boost the role of their own currencies . Russia offers to expand the basket of currencies behind the IMF reserves , The basket should include Ruble Yuan and Gold says Russia presidential aide Arkady Dvorkovich

http://www.youtube.com/watch?v=k3XxY3sMs0Q

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Several Major world Currencies may eventually collapse

Jim Rogers foresees the collapse of several Major

Several Major world Currencies may eventually collapse Investment guru Jim Rogers has no shorts in the stock market for the first time in about 1987 , he says the government is printing so much money it could carry stock prices to elevated levels and that would also spark a currency crisis “I have no shorts I am worried about the currency market I expected to be a currency crisis later this year or may be next year ” said Jim Rogers question “In what currency ” Answer ” I wish I was that smart , may be the US dollar , it might start right here in America it might start with the pound sterling I am not quite sure

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My two daughters are my best investment ever

My two daughters are my best investment ever Jim Rogers said

Jim Rogers told CNBC today that his 2 daughters Happy age 6 and Baby Bee one year old are his best investment ever
“I want my little girls to grow up understanding Asia and speaking Mandarin. I think the best skill that I can give people born in 2003 and 2008, is to be fluent in Mandarin and to know Asia,” says Rogers
“It’s the best investment I can make in my lifetime now, you know for my future, their future, says Rogers…Jim Rogers makes sure that both of his daughters learn Mandarin Chinese besides English , and that’s why he hired a Chinese governess who speaks to them exclusively in Chinese , and that is also one of the reasons Jim Rogers with his whole family moved from New York to Singapore …Jim Rogers believes that the next century will be the century of Asia and in particular China and he thinks that it is wise to move now to wher money is which is Asia the same way immigrants moved to America at the beginning of the last century …Jim Rogers do not speak chinese himself although his two daughters both speak and understand mandarin chinese.

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Jim Rogers Agrees with Marc Faber

Jim Rogers Agrees with Marc Faber
by: Trader Mark May 21, 2009

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.

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The next financial meltdown will be in the currency markets, as central banks around the world have been printing money, giving the appearance of massive government intervention to weaken their currencies, legendary investor Jim Rogers, chairman, Rogers Holdings, told CNBC Wednesday.

“At the moment I have virtually no hedges, I suspect it is going to be the next problem, big crisis will be in the currency markets, I’m trying to figure out what to do there,” Rogers told “Squawk Box Asia”.

“If I am right, you’re going to see a lot of currency problems in the next decade or two,” Rogers said. Governments around the world are doing their best to destroy currencies, many currencies in fact. And people need to understand that; if they don’t understand it now, they’re going to find out, they’re going to find out the hard way,” he added.

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Profit From Commodities, Currencies and Bonds in time of Crisis

Profit From Commodities, Currencies and Bonds in time of Crisis Jim Rogers

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Jim Rogers explains what traders need to know about China, the US dollar,Bonds and commodities. ln December 2007, Rogers sold his mansion in New York City for about 16 million USD and moved to Singapore. This is due mainly in his belief that this is a ground-breaking time for investment potential in Asian markets. Rogers’ first daughter is now being tutored in Mandarin to prepare her for the future, he says. “Moving to Asia now is like moving to New York City in 1907,” he said. Also, he is quoted to say: “If you were smart in 1807 you moved to London, if you were smart in 1907 you moved to New York City, and if you are smart in 2007 you move to Asia.” In a CNBC interview with Maria Bartiromo broadcast on May 5, 2008, Rogers said that people in Asia are extremely motivated and driven, and he wants to be in that type of environment, so his daughters are motivated and driven. He said during that interview that, this is how America and Europe used to be. He chose not to move to Hong Kong or Shanghai due to the high levels of pollution causing potential health problems for his family. His second daughter was born in 2008

Profit From Commodities, Currencies and Bonds Jim Rogers

Jim Rogers was Right on the Korean Market

Jim Rogers was Right on the Korean Market

“The trend fluctuated but continued through the first half of 2004, before reversing course in the second half of that year. The “Sell Korea” spree continued through last year’s second half, when the global economic crisis deepened. The Korean stock market thus entered a state of panic and chaos.

Korea’s “half-baked experts” at that time threatened investors, saying the benchmark KOSPI index could fall below 500 points. U.S. investment strategist Jim Rogers, however, started buying Korean stocks in October last year after predicting a bottoming out of the Korean economy and stock market. At that time, he said that if he invested then, he would earn huge profits four to five years later. The KOSPI has jumped about 50 percent in value, surpassing the 1,400 mark in recent weeks. Rogers accordingly demonstrated that he is a genuine expert unswayed by market sentiment.”

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China caught in US money trap

China stuck in ‘dollar trap’

By Jamil Anderlini in Beijing

Published: May 24 2009 23:30 | Last updated: May 24 2009 23:30

China’s official foreign exchange manager is still buying record amounts of US government bonds, in spite of Beijing’s increasingly vocal fear of a dollar collapse, according to officials and analysts.

Senior Chinese officials, including Wen Jiabao, the premier, have repeatedly signalled concern that US policies could lead to a collapse in the dollar and global inflation.

But Chinese and western officials in Beijing said China was caught in a “dollar trap” and has little choice but to keep pouring the bulk of its growing reserves into the US Treasury, which remains the only market big enough and liquid enough to support its huge purchases.

In March alone, China’s direct holdings of US Treasury securities rose $23.7bn to reach a new record of $768bn, according to preliminary US data, allowing China to retain its title as the biggest creditor of the US government.

“Because of the sheer size of its reserves Safe [China’s State Administration of Foreign Exchange] will immediately disrupt any other market it tries to shift into in a big way and could also collapse the value of its existing reserves if it sold too many dollars,” said a western official, who spoke on condition of anonymity.

The composition of China’s reserves is a state secret but dollar assets are estimated to comprise as much as 70 per cent of the $1,953bn total and China owns nearly a quarter of the US debt held by foreigners, according to US Treasury data.

The collapse of Fannie Mae and Freddie Mac, the US mortgage financiers, last summer prompted Safe to adjust its strategy and start buying far more short-term US government securities, instead of longer-maturity bonds and notes.

This approach is widespread in the market because of expectations that the US will have to raise interest rates in the medium term to deal with rising inflation, as a result of all the money that it is printing.

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The Pound is Terribly Flawed

Jim Rogers on Sky News
The Pound is Terribly Flawed

Leading American investor Jim Rogers is certain Britain’s economy will be downgraded in the forseeable future.
Speaking exclusively to Sky News Business, his gloomy outlook comes just a day after premier ratings agency Standard and Poor’s revision of Britain’s AAA rating to a negative outlook.

“Of course it’s going to come, it’s going to come in the US as well,” Mr Rogers told Sky’s Nina de Roy.

“The US should be downgraded already if you ask me, and the UK as well.”

Singapore-based Mr Rogers, 66, has generated billions for his clients investing with hedge fund legend George Soros – who later made a billion betting against the pound.

“Both the US and the UK unfortunately both have gigantic debts, and both sets of politicians are making mistakes,” Mr Rogers said.

“They’re pouring huge amounts of money into the economy which is going to make some things look better for some people for a while, but it won’t last.”

Crucially, Mr Rogers believes the famous rating agencies are scared of revealing the dire state of American finances.

“I’m still not that optimistic about sterling or the US dollar, I find both of these currencies terribly flawed”
“I think the rating agencies are probably afraid to do it because Congress will come down hard on them and maybe the same with the UK,” he said, adding that traders know the true state of affairs.

“It’s not going to have that much of an effect because the market knows the situation so it doesn’t matter whether I say you’re AA or AAA or A.”

Although the pound has rallied recently against the dollar, Mr Rogers insists problems are endemic for both currencies.

“We’ve already had a very nice rally over the last three or four months, if you compare to the US dollar – not necessarily compared to other currencies,” he said.

“Even in 1930 the stock market went up 50% on it’s way to going down 90%, but rallies are normal and I don’t think that it’s much more than just a normal kind of rally in a bear market.”
Mr Rogers simply cannot get enthused for the pound.

“I’m still not that optimistic about sterling or the US dollar, I find both of these currencies terribly flawed,” he said.

The banking system bailouts have saddled both countries and Mr Rogers insists it needs to stop.

He added: “The poor US and UK taxpayers have stupendous debts being forced on them and we are going to be faced with gigantic tax and debt problems very, very shortly because of what the politicians in Washington and in Whitehall are doing.”
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The Stock market will Collapse says Jim Rogers

The Stock market will Collapse says Jim Rogers

Don’t be fooled by the 30 percent-plus rally over the last six weeks says wall street king Jim Rogers.

Equity prices are overvalued , he added.

“I’m not buying shares,” Rogers told CNBC yesterday . “The bottom will probably come later this year, next year, who knows when.”

And the reason why the stocks will fall is Because governments have “flooded the world with money” he explained .

“In the United States and other countries, the problem is too much consumption and too much debt”, Rogers eadded. But governments and central banks are trying to solve that problem with more of the same.

This “defies belief” and won’t work, he says.

“I mean … you give me five or six trillion dollars, I’ll show you a very good time, there’s no question about that.”

you should invest your money in commodities not stocks said Jim Rogers.

“Fundamentals for General Motors are not getting better. Fundamentals for Citibank are not getting better” he points out.

“I can think of very few industries in the world where the fundamentals are getting better. But the fundamentals of commodities are getting better, full stop.”

Rogers’ favorite commodities include the agriculture sector gold and silver , although he prefers silver to gold .

Jim Rogers chooses silver over gold to beat The inflation

Jim Rogers chooses silver over gold to beat The inflation

Legendary investor Jim Rogers, whose conversion to commodities as an investment class back in 1999 preceded the end of the 20-year bear market by a couple of months, is backing silver over gold as an asset class to beat inflation

He told journalists that if pushed to choose between the two precious metals he would choose silver over gold. Rogers has moved to Singapore and he has sold all his dollar holdings because he believes the resumption of the US dollar’s long term devaluation is imminent. He is even shorting US treasury bonds.

Jim Rogers admits that silver has been particularly battered down, and perhaps that is why he likes this precious metal. Silver is leveraged to the gold price, so when gold goes down, silver goes down further. But equally when gold prices rise, silver will rise even higher.

And why is silver leveraged against the gold price? The answer is simple. Both are precious metals but the available supply of silver is less than one-tenth the size of the gold market, and the dynamics of supply and demand in such a situation are obvious.
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