Why is China booming? Are these prices for commodities still safe to buy and what about U.S. dollar? All these questions and outlook for the rest of 2009 and 2010 from Jim Rogers.
21st century for China
We must not forget the rest of Asia which is growing as fast as China. The reasons are many, but according to Jim Rogers is particularly important to note the following:
1.) The Chinese want to live as a people living in the west
2.) They are eager to work
3.) They have better morale, in terms of savings
4.) There are about one and a half billion people in China (all Asia population reaches three billion). Western countries are mostly in the role of borrowers.
"Of course, that in emerging Asian economies will be some slowdown, but there are many investment opportunities. And if you already see on a slowdown in Asian markets, pick up the phone and get involved in trading. I think that our children should learn Chinese, "says Rogers.
The road to global economic domination of China was started in 1978 with Deng Xiaping capitalist program. Jim Rogers sees China's dominant position in markets like an unstoppable wave of growth, except for one small flaw - problems with water. In China there are many places without drinking water. And where there is no water, they can not be even people. That is why China has come up with aggressive and maybe a bit drastic solution to the problem and therefore can no longer see the future water shortages, as obstacle to sustainable development.
US dollar outlook
Depreciation of the dollar may result in U.S. currency collapse as a reserve currency. It is seen in the market, where many people sell the dollar, because of its steep decline.
"just sitting on a chair and waiting for rally development in stock markets. I want to be ready to leave the market at any time, and I think that it may soon become. Development of the dollar just confirms. I confess that if that happens, I will sell like everybody else, "adds Rogers.
Jim Rogers is frightened by all the steps that the U.S. government took a particularly Ben Bernanke himself. Strategy of the United States will have a detrimental effect by Rogers on the dollar. The devaluation of U.S. currency is called terrible policy. Rogers believes that this policy helps the U.S. economy in the short term, but medium and long term outlook is dire.
Jim Rogers about commodities
As already noted, Asia is around 3 billion people and it seems everyone is ready to live out his "Asian - American Dream". It is clear that it is all about consumption. We like things - buy them, wear them, eat them, etc. It is therefore a lot of power, and it seems (as economic indicators suggests), consumption is growing. However, if you look at commodities, according to Rogers over the last decade, are far from being exhausted of their growth capacities.
Regarding oil, Rogers highlights the fact that, for example Saudi Arabia has made no new discovery of oil fields. Last 20 years only claims that its reserves are 260 billion barrels.
Rogers adds "The ideal time to invest in commodities, which are still in a bull phase, is 18 to 20 years. I think that now we are in the eleventh year. "Yes, this development may end soon, but it seems that the increased demand retain commodities still at the top for some years.