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Jim Rogers: We are buying land in Brazil and Canada and starting to farm it

http://www.youtube.com/watch?v=-u9gPykOkdA

Quotes from Jim Rogers’ interview (video at bottom):

  • “We’re still going to eat probably. We’re still going to wear clothes probably. You know nobody — Farmers cannot get loans for fertilizer right now. So the supply of everything is going to continue under pressure. Uh the inventories of food are the lowest they’ve been in 50 years. We have serious supply problems developing for many mining goods, oil, agriculture. So even if demand goes flat or down as it did in the 30s as it did in the 70s you can still have a nice market.”
  • “What we’re doing is buying land in Brazil and the other is buying land in Canada. … If I’m right agriculture is going to be one of the great industries of the next 20 years or so … 30 years … maybe we can change this to CNBC agriculture.”
  • “We are buying some land … and turning raw land into farm land. . . . we are hiring farmers.”
  • “You know the IMF is trying to sell their gold and if they do then they may drive the price of gold down a lot and if they do Martin you better buy all you can because that will be the last opportunity to buy gold in a long, long time.”
  • “Throughout history when governments have printed huge amounts of money it’s always – it’s always led to higher prices.”
  • “I still own the yen and hope to buy some more yen if it continues to consolidate for awhile.”
  • “I expect to own commodities for years.”

(H/T to Tim)

Rogers has been busy lately (Or in high demand). Here’s more from him:

[video:youtube:-u9gPykOkdA]

@ http://www.youtube.com/watch?v=-u9gPykOkdA

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Jim Rogers on The Oracle with Max Keiser

http://www.youtube.com/watch?v=k7PWkHgxkTI

[video:youtube:k7PWkHgxkTI]

I’ve not seen Max Keiser’s program The Oracle before, but since my current favorite billionaire Jim Rogers was on the show, I had to watch.

It’s about a ten minute clip and I can’t say there’s anything particularly new that comes out of it from Rogers (You can get almost all the same soundbytes from reading Jim Roger’s most recent interview with Maria Bartiromo). The new tidbits I did enjoy are paraphrased as follows:

  • Rogers doesn’t have much respect for the IMF and believes they will likely end up selling all of their gold before going the way of the dinosaur.
  • He points out how the Swiss banks are bigger than the Swiss government; the takeaway being that if the Swiss government tries to bail out the Swiss banks, they are likely to go bust themselves — the Swiss government being like a lifeguard trying to save a panicking man from drowning when the man can’t swim and is twice the lifeguard’s size.
  • When asked in a jocular manner if he had any gold coins on him at that moment, wouldn’t you know it he did (he pulled out a coin from his pocket)
  • Rogers is currently in Singapore. He’s moved to Asia (and sold off his NYC house), so this isn’t surprising though I think he’s officially calling China home these days.

(H/T to Ritholtz)

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Jim Rogers Doesn’t Mince Words About the Crisis

http://www.businessweek.c…22017811535.htm

The title of this interview with Maria Bartiromo is dead-on as billionaire investor Jim Rogers speaks the hard truth about what has happened and should happen on Wall Street as well as what he sees coming down the pipeline.

Rogers’ comments are brief, succulent and refreshing — so much so that they make me wonder why we don’t hear these things from the other members of the billionaire club. By way of poignant comparison (Soros co-founded the Quantum Fund with Rogers), George Soros’ flip-flopping in recent weeks makes him come off as a sort of Elmer Fudd (See George Soros finally gets it). What is going on? Why is Rogers so cocksure of himself? Why is he so brutally honest?

One argument is that Rogers, like many other commodity bulls, is just talking his book. And even though talking your book doesn’t make you wrong, it inevitably makes you biased.

I think there’s a bigger reason Jim Rogers is being so frank. He can afford to be. Compare him with Warren Buffett or George Soros, two other wizened investors who are considered go-to gurus on the economy. Both of these guys* are hugely invested in the United States both financially and politically. Meanwhile, Rogers sold-out his house in New York and seems to have moved most of his investments into real assets (Agriculture, metals, etc.) and China. Jim Rogers has protected his wealth and situated himself for economic turmoil!

He has no reason to be afraid of telling the truth. Let the banks go bankrupt. Call out the CEOs who made millions while destroying their companies!

It really doesn’t matter that he’s talking his book when he’s right, does it?

The full interview isn’t long, but my favorite parts are snipped below. For all the folks out there (like us) who held out and didn’t buy a house in the boom, can I get an “Amen!?” How about the ones who didn’t buy into the bull market bull and went short only to get wiped clean by Fed market intervention?

Thank you, Jim!

What do you think of the government’s response to the economic crisis?

JIM ROGERS: Terrible. They’re making it worse. It’s pretty embarrassing for President Obama, who doesn’t seem to have a clue what’s going on—which would make sense from his background. And he has hired people who are part of the problem. [Treasury Secretary Tim] Geithner was head of the New York Fed, which was supposedly in charge of Wall Street and the banks more than anybody else. And as you remember, [Obama’s chief economic adviser, Larry] Summers helped bail out Long-Term Capital Management years ago. These are people who think the only solution is to save their friends on Wall Street rather than to save 300 million Americans.

So what should they be doing?

What would I like to see happen? I’d like to see them let these people go bankrupt, let the [banks] go bankrupt, stop bailing them out. There are plenty of banks in America that saw this coming, that kept their powder dry and have been waiting for the opportunity to go in and take over the assets of the incompetent. Likewise, many, many homeowners didn’t go out and buy five homes with no income. Many homeowners have been waiting for this, and now all of a sudden the government is saying: “Well, too bad for you. We don’t care if you did it right or not, we’re going to bail out the 100,000 or 200,000 who did it wrong.” I mean, this is outrageous economics, and it’s terrible morality.

What about Citigroup (C)? What about the car companies?

They should be allowed to go bankrupt. Why should American taxpayers put up billions to save a few car companies? They made the mistakes! We didn’t make the mistakes! I’m sure they’ll give them the money, but I’m telling you, it’s a mistake. It’s a horrible mistake.

I totally understand what you’re saying, but the banks are under massive pressure.

They all took huge, huge profits. Who was the head of Citigroup? Chuck Prince? I mean, how many hundreds of millions of dollars did Prince take out of the company? How many hundreds of millions of dollars did other Citibank execs take out of the company? Wall Street has paid something like $40 billion or $50 billion in bonuses in the past decade. Who was that guy who was the head of Merrill Lynch (MERR)?

Stan O’Neal?

Right, Stan O’Neal. He got $150 million for leaving, even though he ruined the company. Look at the guy at Fannie Mae (FNM), Franklin Raines. He did worse accounting than Enron. Fannie Mae and Freddie Mac (FRE) alone did nothing but pure fraudulent accounting year after year, and yet that guy’s walking around with millions of dollars. What the hell kind of system is this?

Which commodities are worth buying or holding on to?

I recently bought more of all of them. But I really think agriculture is going to be the best place to be. Agriculture’s been a horrible business for 30 years. For decades the money shufflers, the paper shufflers, have been the captains of the universe. That is now changing. The people who produce real things [will be on top]. You’re going to see stockbrokers driving taxis. The smart ones will learn to drive tractors, because they’ll be working for the farmers. It’s going to be the 29-year-old farmers who have the Lamborghinis. So you should find yourself a nice farmer and hook up with him or her, because that’s where the money’s going to be in the next couple of decades.

*I’m uncertain as to how Soros’ portfolio weighs out though he’s certainly made some bad bets in the recent market crash (See stockpickr)