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‘Everyone should be raising interest rates, they are too low worldwide,’ Rogers said in a phone interview with Bloomberg News. — PHOTO: BLOOMBERG NEWS

SINGAPORE – CHINA and other global economies should increase interest rates to contain a surge in inflation, said investor Jim Rogers, chairman of Rogers Holdings.

‘Everyone should be raising interest rates, they are too low worldwide,’ Rogers said in a phone interview with Bloomberg News.

‘If the world economy gets better, that’s good for commodities demand. if the world economy does not get better, stocks are going to lose a lot as governments will print more money.’

China’s central bank hasn’t increased rates since November 2007. In the US, the Federal Reserve this month left the overnight interbank lending rate target in a range of zero to 0.25 per cent, where it’s been since December 2008, while the European Central Bank has kept its key interest rate at a record low of 1 per cent.

Policy makers in Malaysia, South Korea, Taiwan and Thailand have increased the cost of borrowing at least once this year, while India has boosted rates four times in five months.

The global economy is at the risk of prolonging a recession after reports over the past two days showed US home sales plunged by a record and Japan’s export growth slowed for a fifth month in July, he said.

The Straits Times

Jim Rogers is a legendary commodities investor and the chairman of Rogers Holdings. in late 2009, he predicted that the price of gold would increase to $2,300 per ounce within the near future. Though mr. Rogers may love gold, he is not taking any steps to invest in it.

The reason for his lack of action is that gold prices are peaking and anyone making investments at this time will be taking on a big risk. most of the larger investors are taking the opportunity to sell gold now, in order to generate a huge profit. the price of gold is sitting on a market bubble, which can burst at any time, so these investors are getting out while the getting is good.

Most recently, mr. Rogers advised investors to steer clear of the bond market and invest in commodities. He believes that commodities are a safe haven from the volatility in the world economy. He recommended investing in silver rather than gold, based on his mindset of last year that anything rising straight up does not represent an ideal investment. the fact that silver is trading 60 to 70 percent below its peak prices makes it a better investment than gold, which is trading at record highs.

Investors would be wise to adhere to the advice of mr. Rogers because is he well-known for being ahead of the crowd when it comes to investment thinking. He co-founded the Quantum Fund with the iconic George Soros and saw the fund gain over 4,000 percent during a time that the S&P rose not even 50 percent. this Fund is perhaps most well known for earning $1 billion dollars when it bet against the British pound during the early 1990s.

Just because one holds gold already and recognizes its strong potential to increase in price does not mean this precious metal is the favored investment. this is the thinking of commodities investor Jim Rogers and it seems to have served him well so far. Following this line of thought, now is not the time to buy gold coins or make other purchases of the precious metal. Those who have gold holdings may want to start thinking about selling them before the bubble bursts.

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Jim Rogers again talking about how depressed agriculture commodities are relatively to others which have boomed recently and that is where investors should look. (Sugar is still off 70% of its all-time high reached in 1974, Wheat – he doesn’t mention it, is at 200 yr lows, in inflation-adjusted terms.)

TheStreet.com

Jim Rogers, legendary contrarian investor, author and chairman of Rogers Holdings, is still betting on $2,000 gold in 10 years and in the meantime is looking to profit from China, the euro and other commodities. aside from the precious metals that we talked about, what other commodities do you like?

Rogers: Agriculture still. Agriculture’s still very depressed. Frequently, one will make a lot of money if you buy the things that are depressed [and] where things might be getting better.

So what happens to the world economy as you see it?

Rogers : We’re certainly going to have another recession in the next two or three years. We’ve had recessions every four to six years since the beginning of time. So by 2012, we’re getting ready to have another one, if history’s any guide. I suspect it will happen before then, because there are still so many imbalances in the world which have to be sorted out.

What’s the biggest positive and the biggest negative that you see in the big macro picture right now for the world economy?

Rogers: the gigantic debt imbalances. throughout history, when you’ve had these kind of imbalances, they usually worked their way out in the currency market. It used to be the gold market when we had the gold standard. We’ve been seeing currency dislocations for two or three years. We’re [going to] see a lot more. Everybody who gets involved with you should learn about currency because we’re [going to] see many, many, many, more currency problems in the next two or three years. And that’s [going to] affect us all, including stock markets and including economies.

• Jim Rogers busy turning raw land into farmland in Brazil
• Agribusiness Opportunities in South America

Technorati Tags: agriculture, farmland, south america, jim rogers, investing, brazil, argentina, uruguay, mercosur

Buy Farmland and Soft Commodities like sugar, cotton:How to Invest Like Jim Rogers

Katla is the second bigger Icelandic volcano Jim Rogers rightfully is worries about Katla which usually blows right after the smaller volcano blows , if the smaller volcano was enough to disrupt all the flights across Europe and hence cause billions of dollars in damages , we can only imagine the catastrophe that will occur if Katla the biggest volcano decides to blow …Jim Rogers :”the thing that I got most on my mind is Iceland , because if Katla , the big volcano blows and it has blown every hundred years for thousands of years and frequently it always blows after the small volcano blows if that happens you gonna see a lot of disruption in the world economy and you gonna see agriculture , I mean you better buy all the agriculture you can if that happens , I have no idea if Katla is gonna blow , but if Katla blows it’s gonna change everything we are talking about here today “
just on a side note the real name for the Icelandic volcano is Eyjafjallajokull but as nobody that is not an icelandic seems to be able to pronounce it it is good that jim Rogers have found a better and shorter name or that volcano ‘Katla’
The topmost issue on Jim Rogers‘ mind right now is whether the second, bigger Icelandic volcano Katla will erupt. Rogers, chairman of Rogers Holdings & Kirby Daley, senior strategist at Newedge Group, tell CNBC’s Bernard Lo, Martin Soong, Sri Jegarajah & Karen Tso how they are investing to hedge against this risk.

Jim Rogers president of Rogers Holdings is a successful hedge fund manager, investor, writer and regular media commentator. In the 1970’s he co-founded with George Soros the Quantum Fund, a private investment partnership which invested in commodity futures, among other investment vehicles, and experienced superior returns over 10 years. former partner and co-founder of the Quantum Fund, and a truly legendary international investor who helped generate a 4,200% total return over a 10-year period .Jim Rogers is always bullish on Asia Commodities Agricultural Products gold and silver . Rogers has been chronicled in John Train’s “Money Masters of Our Time”, Jack Schwager’s “Market Wizards” and other books. He is the author of several books on investing and the market, and in December of 2004 published “Hot Commodities: how Anyone Can Invest Profitably in the World’s Best Market”. Jim Rogers once said about investing in commodities :”Investing in commodities can be a hedge against a bear market in stocks, rampant inflation, even a major downturn in the economy. In fact, I believe that investing in commodities will represent an enormous opportunity for the next decade or so.”
Jim Rogers Commodity Index Rogers International Commodity TRAKRS , trades on the Chicago Mercantile Exchange under the ticker symbol RCI. The RCI represents the U.S. dollar value of a basket of 35 commodities consumed in the global economy both in developed and emerging markets

Jim Rogers The Icelandic volcano Katla Eruption could be a …

April 07, 2010, 11:51 PM EDT

(Adds Rogers comment on commodity currencies in 13th paragraph.)

April 8 (Bloomberg) — China will eventually allow its currency to appreciate because a strong yuan will help the world’s fastest-growing economy to fight inflation, said investor Jim Rogers, author of “A Bull in China.”

“China knows that they cannot have a major world economy with a blocked currency,” Rogers, 67, chairman of Singapore- based Rogers Holdings who predicted the start of the global commodities rally in 1999, said in an interview with Bloomberg Television. “Whether the yuan is overvalued or undervalued against the dollar, I hope the market will let us know. I hope the Chinese will let it float.”

U.S. Treasury Secretary Timothy F. Geithner is on an unscheduled trip to China following his visit to India. Geithner, who is facing demands from Congress to label China a currency manipulator, is meeting Chinese Vice Premier Wang Qishan in Beijing today. China should move toward a more flexible exchange-rate policy to help promote global economic growth, Geithner said on April 3.

the Chinese central bank has kept the yuan around 6.8 per dollar since July 2008 as part of stimulus efforts to help the nation weather the global recession. the International Monetary Fund predicted in January that China’s economy will grow 10 percent this year and 9.7 in 2011. the world economy will expand 3.9 percent this year after contracting 0.8 percent in 2009, the IMF said.

Inflation Weapon

“Lots of people will benefit if the yuan goes up. everything they import will go down in price,” Rogers said. “That will help inflation a great deal in China. They do have an inflation problem.”

Nobel Prize-winning economist Paul Krugman said last month global economic growth would be stronger if China stopped restraining the value of its currency and running trade surpluses.

Rogers also said the economies of China and India will continue to grow, but both countries can’t save the global economy if the rest of the world posts meager growth.

Global equities are due for a correction after rallying from their March 2009 low, he said.

the MSCI World Index climbed 76 percent from a more than 13-year low on March 9, 2009, as governments boosted spending and central banks cut borrowing costs to pull the global economy out of its worst recession since World War II.

Commodity Markets

the gauge fell 9.6 percent from a 16-month high on Jan. 14 through Feb. 8 this year on concern monetary tightening in China and India and budget deficits in Europe would derail the recovery. the gauge has since advanced 11 percent.

the bull run in commodity markets will continue as the world faces supply constraints and investors shouldn’t sell gold now as the precious metal could rise to “at least $2,000 by the end of the decade,” Rogers said.

Gold jumped to a 12-week high in new York yesterday on demand for an alternative investment to currencies as the euro weakened against the dollar. Gold futures for June delivery rose $17 to $1,153 an ounce on the Comex. Earlier, the most-active contract reached $1,154.20, the highest price since Jan. 12. Gold has risen for five straight sessions, the longest rally since November.

Rogers said he likes the Canadian and Australian dollars and sees “enormous value” in the Brazilian real.

“Well-managed commodity currencies are the place to be,” he said. “You don’t own currencies just because they’re linked to commodities.” Rogers holds Australian and Canadian currencies and does not own Brazilian real.

–Editors: John McCluskey, Sam Waite

To contact the reporter on this story: Jonathan Burgos in Singapore at jburgos4@bloomberg.net.

To contact the editor responsible for this story: Darren Boey at dboey@bloomberg.net.

China Will Eventually Allow Yuan to Gain, Rogers Says

The unexpected drop in wholesale prices for February is being hailed as a sign that inflation is in check and the Fed can keep interest rates low.

The real lesson from today’s report is what a near-death-experience we had with 1930s-style deflation, arising out of the financial panic and the Great Recession. Deflation, a sustained drop in prices, would have driven the economy into full-out depression. For all his missteps, Fed Chairman Ben Bernanke was right to see deflation as a major threat and expand money supply to combat it.

That said, the Fed’s other sins await atonement: the secret deals with the big banks, the toxic assets hidden away (for now), and the fiasco with AIG and others among the Wall Street boyz. these total into the trillions, they allow continued bad behavior and have prevented unwinding of huge amounts of leverage, and they represent an ongoing threat to recovery. even necessary and good steps have unintended consequences: hence, the Fed’s expansion and easy credit policies have pumped the world economy full of hot money going into all manner of plays that have little to do with creating jobs or sustained productive enterprises. meanwhile, the viability of U.S. debt means the Fed can’t base its interest-rate decisions purely on inflation data. The T-bonds will, after all, have to keep attracting investors.

So, two cheers for Bernanke? One cheer? We’ll see in a few years.

The back Story: The Seattle-King County Building and Construction Trades Council and the M.L. King County Labor Council are set to hold a “jobs now” rally from 2 p.m. to 4 p.m. today at Westlake Park. The labor groups say unemployment in construction here is an unprecedented 35 percent. The protest will support more infrastructure investments to create jobs.

Today’s Econ Haiku:

So much for mellowThe medical pot sectorHas come under fire

Behind today's inflation numbers: How close we came to disaster