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%.

Monday, December 13, 2010

Inflation in China Hits a 28-Month High


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Inflation in China has reached its highest point in more than two years. It's driven mostly by the soaring food prices. Chinese authorities are trying to keep prices stable, but economists see no relief any time soon.

The Chinese National Bureau of Statistics announced on Saturday, China's inflation has soared to a 28-month high. The consumer price index rose by 5.1 percent year-on-year in November.

Food was the biggest concern, with prices rising 11.7 percent. Economists say inflation could be spreading to other sectors, with health care up four percent and house prices up 5.8 percent.

[Hu Xingdou, Professor of Economics, Beijing Institute of Technology]:
"China will experience a long-term inflation era. Price rises will be seen in sectors like real estate and asset prices, prices of raw materials, commodities, agricultural products and agricultural inputs will also rise rapidly."

Economists blame massive lending and billions of stimulus spending in reaction to the financial crisis.

China's central bank raised lenders' reserve requirements for the third time in a month to sop up some of the excess cash in the economy that is driving prices higher.

Chinese authorities also promised to take a hard line on the hoarding of food and other goods which they say is artificially driving up prices.

But many retired city dwellers still worry they will not have enough money to pay doctor bills if food prices keep rising.

[Ms. Wang, Beijing Resident]:
"For people like us who have retired, with low salaries, you can afford to eat as long as you don't get sick. If you have to see a doctor you soon won't be able to afford to eat."

China Growth Will Remain Solid

Dec. 13 2010 | While China's leaders have pledged to fight inflation, Pu Yonghao, chief investment strategist for Asia Pacific at UBS Wealth Management, believes growth will still remain "solid" in the country. He shares his outlook, with CNBC's Chloe Cho, Maithreyi Seetharaman and Yousef Gamal El-Din.

Jim Rogers : U.S. and Europe are headed for years of decline

“We're going to have more crises down the road,” . “The politicians keep delaying the problems rather than dealing with them.” “Things may look better for a while, but I'm very worried about the longer term,” both the U.S. and Europe are headed for years of decline because of their loose monetary policies and rescue tactics. Jim Rogers told the attendees at a Reuters investment conference in New York.
Jim Rogers 's golden words: Investment in productive capacity is what leads to the long term growth of economy.Jim Rogers is not only an astute businessman, a voice of reason and a gentleman but is also blessed with a genuine sense of humor - Jim Rogers says that the pound is worse than the dollar.



One important fact you need to remember. When the crash happens, a new system will be offered. Refuse it, unless it is a gold standard.I doubt that they would offer a gold standard due to what happened in the UK in the 1930s when Churchill tried. It'll just be another Fiat currency backed by nothing.

Commodities: Oil, Metals Up as China Avoids Rate Hike

Crude oil is up sharply this morning, gaining $1.33 to 89.11 a barrel after Chinese officials held off from raising interest rates to counter inflation. Gold and copper also are surging.

A Chinese government report showing refineries ran at record levels during November also was bullish for oil futures, which on Friday had fallen to its lowest settlement since Dec. 1. The International Energy Agency also increased its global crude- oil demand forecast for next year, citing consumption gains in North America and China.

Gold is up $7 to $1,391.90 an ounce while March Copper is up nearly $0.07 to $4.1790.
Jim Rogers "the 19th century was the century of the UK , the 20th century was the century of the US , the 21 st century is going to be the century of China "
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