This week famed commodity bull and legendary hedge fund investor Jim Rogers spoke with Indian-based “Economic Times” on gold, China and Iran. Rogers is Chairman of Rogers Holdings but came to fame after running the most successful hedge fund in history, the Quantum Fund, with now billionaire George Soros.
Rogers on China
China is presently on a monetary easing path like most of the world’s central banks. Given China’s policy of currency controls via a dollar peg, they are forced into printing money in tandem with the Federal Reserve. Mimicking US monetary policy has pressured prices in China upwards and since late 2010, this has made US imports from China increasingly expensive:
Rogers reasons that real assets are the place to protect against these inflationary forces and have the added benefit of performing well on strong resource demands from emerging markets with large populations like China. China’s efforts, according to Rogers, are simply a product of global stimulus efforts and its the combination of loose policies from varying countries that really solidifies the case for precious commodities.
Rogers says,
