Jim Rogers: Inflation 'It’s Here!
with Forbes Russell Flannery on Tuesday, Jim Rogers,
the co-founder of the Quantum Fund and author of several financial
books, offered his latest musings about the current state of affairs
on the inflation front.
Rogers, who holds the moniker, commodities
king, doesnt agree with Federal Reserve chairman Ben
Bernankes latest comments concerning inflation.
during his Atlanta speech on Monday, I think the increase
in inflation will be transitory. Our expectation at this point is
that in the medium term inflation, if anything, will be a bit low.
In a question-and-answer
segment following Bernankes speech, the Fed chairman contends
that soaring commodities
prices stem from temporary supply and demand conditions.
concurrence with Bernankes latest statements in Atlanta, Rogers,
too, expects commodities prices to rise further due to supply-and-demand
forces, driven mostly by Asias strongly growing 2-billion-plus
consumer class and relatively constrained supplies of resources.
banks are up against the fact that we do have a commodity boom market,
and even if they didnt print money, the prices of things are
going to continue to go much, much higher, Rogers asserted.
So forget the printing of money, for the moment, were
going to have more inflation.
But where he
differed from Bernankes publicly held denial of the central
banks role in the rapid rise of commodities prices, Rogers
pointed his finger at the Fed and its unstated policy actions of
debasing the value of the dollar.
It should be
noted that the position of the Fed regarding the dollars relative
value against other fiat currencies, gold and commodities remains
a deep-rooted taboo subject following the official unpegging of
the worlds premier currency from gold in 1971. The forthright
Rogers is unencumbered, however, by that constraint.
the U.S. pouring gasoline over the fire, its going to be much
more difficult for anybody to stop inflation. America is fanning
it as best as it can, and its going to get worse, Rogers
about the effects of inflation in China, the 68-year-old Rogers
reports that consumer prices are also soaring in the People’s Republic.
He said the inflation problem in China is rooted in the tug-o-war
between the Fed and the Central Bank of China over the renminbi-dollar
cross in the Forex, forcing Beijing to create fresh Chinese currency
to absorb excess dollars created by the Fed. Otherwise, the renminbi
would rise too high and too fast against the dollar and other significant
consuming nations, choking off the world’s largest exporter.
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Rogers has taught finance at Columbia University's business school
and is a media commentator worldwide. He is the author of Adventure
Gift to My Children, and A
Bull in China. See his
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