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Jim Rogers, Quantum Fund co-founder and investment biker, appeared on The Kudlow Report earlier this week to talk about the eventuality of $150 oil and other forms of skyrocketing inflation (video clip below). Though he doesn’t expect oil to necessarily hit that dollar figure in the immediate-to-near term, he sees it as inevitable because known reserves of oil are declining.
Rogers highlighted increasing inflation across a wide spectrum of commodities around the world – in Asia, Europe, the Americas – and, the only place where it’s nowhere in sight is at the Bureau of Labor Statistics (the BLS). According to Rogers, “inflation is here, but the Americans lie about it and the British lie about it.”
As he describes, money is being pumped into the economy and must end up somewhere. In inflationary circumstances like the present, investors do not choose to hold as much paper money, so that money is instead going into stocks and commodities. This is a time, he suggests, to own real assets.
When are we ever going to solve our deficit or debt problem? According to Rogers, “only when we have a crisis or semi-crisis… when they’re forced to. Those guys in Washington do not get it.”