I'm also worried about the Japanese Yen, as in the last few month they had a trade deficit. If this persists, it would be negative for the Yen. I suppose Jim Rogers plans to convert some of his Japanese Yen holdings into Euro and CHF.
Showing posts with label jim rogers. Show all posts
Showing posts with label jim rogers. Show all posts
Tuesday, January 3, 2012
Jim Rogers: Buy the Euro and the Swiss Franc in 2012
Apparently, despite all the talks about a currency crisis in Europe, I'm not the only one to think the Euro may be a buy in 2012, as Jim Rogers was interviewed on CNBC on the 3rd of January 2012 saying he would consider investing in the European currency along with the Swiss Franc. The main reasons he wants to invest in the Euro are the large short position in the Euro and the fact that it is an election year in France, so they will probably do something (spend money or monetize the debt) to make the market feel better for a while. However, he believes this would be a terrible mistake and we'll have to pay the price in 2013-2014.
I'm also worried about the Japanese Yen, as in the last few month they had a trade deficit. If this persists, it would be negative for the Yen. I suppose Jim Rogers plans to convert some of his Japanese Yen holdings into Euro and CHF.
I'm also worried about the Japanese Yen, as in the last few month they had a trade deficit. If this persists, it would be negative for the Yen. I suppose Jim Rogers plans to convert some of his Japanese Yen holdings into Euro and CHF.
Thursday, September 22, 2011
Jim Rogers: The US Dollar is not a Safe haven
Interview with Jim Rogers on CNBC on the 22nd of September 2011.
He said right now he would just hold USD, CHF (Swiss Franc) or Agriculture, although he does not consider the US dollar to be a safe haven in the long term.
Thursday, September 15, 2011
Why is the British Pound a doomed currency ?
I previously talked about the reasons the US dollar is doomed based on my analysis. Today, I'll show why the British pound (GBP) is also doomed based on the research made by Tullett Prebon financial firm and published in their report entitled "Thinking the Unthinkable" part of Project Armageddon.
When considering public and private debt, the United Kingdom is actually one of the most indebted countries in the world as a percentage of GDP with 167% public debt (including quasi-debt obligations, but excluding potential commitments created by financial interventions) and 97% of private debt (mortgage and consumer debt) . That's 264% debt to GDP ratio.
Tullett Prebon concluded that Britain’s debts are unsupportable without sustained economic growth, and that the economy, as currently configured, is aligned against growth.
So they come to the same conclusion as Jim Rogers who famously said the "UK is finished", unless some miracles happen such as an economic growth of at least 2.9 % between 2011 until 2016.
On top of that, the UK external debt (owned by foreigner) is at an amazing 400% of GDP (or 143 000 USD per person ) far higher than in Greece, Spain or Portugal, and if foreigner decide to sell UK debt, the British pound would completely be decimated. The UK, as the US, also has a trade deficit which usually makes a currency weak.
Tullen Prebon explains that bankruptcy is a very possible outcome for the United Kingdom but the idea has not yet made its way into the public mind.
You could read the full report below.
Tullett Prebon Project Armagedon Aug 2011
When considering public and private debt, the United Kingdom is actually one of the most indebted countries in the world as a percentage of GDP with 167% public debt (including quasi-debt obligations, but excluding potential commitments created by financial interventions) and 97% of private debt (mortgage and consumer debt) . That's 264% debt to GDP ratio.
Tullett Prebon concluded that Britain’s debts are unsupportable without sustained economic growth, and that the economy, as currently configured, is aligned against growth.
So they come to the same conclusion as Jim Rogers who famously said the "UK is finished", unless some miracles happen such as an economic growth of at least 2.9 % between 2011 until 2016.
On top of that, the UK external debt (owned by foreigner) is at an amazing 400% of GDP (or 143 000 USD per person ) far higher than in Greece, Spain or Portugal, and if foreigner decide to sell UK debt, the British pound would completely be decimated. The UK, as the US, also has a trade deficit which usually makes a currency weak.
Tullen Prebon explains that bankruptcy is a very possible outcome for the United Kingdom but the idea has not yet made its way into the public mind.
You could read the full report below.
Tullett Prebon Project Armagedon Aug 2011
Friday, September 9, 2011
Jim Rogers: Buy the Euro After Greece Defaults
Jim Rogers is interviewed on CNBC on the 9th of September 2011 where he discusses the possible Greek default and subsequent contagion risks to other PIIGS. He recommend to buy as much as Euro as you can after the crisis, as the Euro would be lower but be a stronger currency in the long term. Jump to 6:55 on the video below to listen to Jim Rogers.
Wednesday, September 7, 2011
Jim Rogers: The Chinese yuan is the next safe haven currency.
Jim Rogers was interviewed on CNBC on Wednesday 7th September 2011 to discuss the recent move by the SNB (Swiss National Bank). Here are his views on the move and the Chinese yuan:
"The Swiss central bank's decision to set a limit on how much the Swiss franc can appreciate against the euro is "a huge mistake". The move will work for a while, but the market will have more money in the end than the SNB which risks losing a lot of money buying up lots of foreign currencies which they will eventually sell at a loss. Another risk is that the central bank will totally debase the Swiss franc trying to keep Switzerland 'competitive' which will then destroy the traditional Swiss financial industry. So this is a huge mistake for Switzerland since they are going to suffer more either way"
"RMB is best, the US dollar is probably good in the short term, but the absolute worst over the long term. There are various ways to get RMB exposure outside China, investors can now open bank accounts in renminbi in various cities like New York, San Francisco, Hong Kong, Singapore and others and can buy renminbi-denominated bonds in the international markets."
"The Swiss central bank's decision to set a limit on how much the Swiss franc can appreciate against the euro is "a huge mistake". The move will work for a while, but the market will have more money in the end than the SNB which risks losing a lot of money buying up lots of foreign currencies which they will eventually sell at a loss. Another risk is that the central bank will totally debase the Swiss franc trying to keep Switzerland 'competitive' which will then destroy the traditional Swiss financial industry. So this is a huge mistake for Switzerland since they are going to suffer more either way"
"RMB is best, the US dollar is probably good in the short term, but the absolute worst over the long term. There are various ways to get RMB exposure outside China, investors can now open bank accounts in renminbi in various cities like New York, San Francisco, Hong Kong, Singapore and others and can buy renminbi-denominated bonds in the international markets."
Friday, August 19, 2011
Jim Rogers: World to suffer a new currency crisis by fall
Interview with Jim Rogers on Russia Today on the 11th of May 2011 where he discusses the possibilities of a US dollar currency crisis by fall 2011.
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