Tuesday, December 31, 2013

Debt rising like a beanstalk

We've had economic slowdowns every 4-6 years in America...

In 2008 it got worse and worse and worse, because the debt so much higher. Look out the window. 

You can probably see the debt rising! It's like the beanstalk.

Monday, December 30, 2013

How to invest in North Korea ?

It's illegal for Americans to invest in North Korea. It's probably illegal for us to even say the word "North Korea". I look around to see which countries are hated. In North Korea there is no stock market, and there is no way to invest, especially if you are an American, but sometimes you can find something in a secondary market.

There were people once upon a time—and maybe even now—who invested in North Korean debt. I have not done that, but it may be another way that people can invest in North Korea. I don't even know if North Korean debt still trades, but it was defaulted on at some point.

Stamps and coins were the only ways I knew of that one could get some sort of exposure. This is because you are not investing in the country, obviously, because you are buying them in a secondary or tertiary market. That said, I think the US government is going to make owning stamps illegal too.

Friday, December 27, 2013

Thursday, December 26, 2013

Opportunities to invest in Crisis countries

I first invested in China back in 1999 and then again in 2005. The market at those times was very, very bad. I invested again in November of 2008, when all markets around the world were collapsing, including in China.

So I have certainly made investments in countries with crisis markets, and I'm getting a little better at it than I used to be, because I have had more experience now. That's why I keep emphasizing that you have to know what you're doing. And by that I mean paying attention to and doing your homework on a stock or a commodity or a country. If you do that with a crisis market, then chances are you can move in and make some money.

Tuesday, December 24, 2013

Difference between a Trader and Investor

Well, there are two aspects of it. One is being a trader, being able to buy panic, and nearly always if you are a trader or an investor, if you buy panic, you are going to do okay.

Sometimes it is better for the traders, because when there is a panic—a war breaks out or something like that—everything collapses, and some people are very good at jumping in and buying. Then, when the rally comes, the next day or the next month, they sell out.

Now, the people who are investors can also do that, but it usually takes longer for there to be a permanent rally. In other words, if there's a war and stocks go from 100 to 30 and everybody jumps in, it may rally up to 50, and then the traders will get out, it may go back to 30 again. I'm trying to make the differentiation between investors and traders buying panic.

As an investor, nearly always if you buy panic and you know what you are doing, and then hold on for a number of years, you are going to make a lot of money.

You also have to be sure that your crisis or panic is not the end of the world, though. If war breaks out, you have got to make sure it's a temporary war.

I used to work with Roy Neuberger, who was one of the great traders of all time, and whenever stocks would panic down, he was usually one of the few buyers, because he knew he could get a rally—if not that day, at least maybe that week or that month. And he nearly always did. No matter how bad the news, especially if there's a huge drop, it's probably a good time to buy if you've got the staying power and your wits, because you will likely get a rally. In terms of panic buying or crisis situations, that's normally the way to play.

Now, it's not always easy, because you are having everybody you know, or everybody in the media shrieking what a fool you are to even try something like that. But if you have your wits about you and you know what you are doing, and you know enough about yourself, then chances are you will make a lot of money.

Monday, December 23, 2013

Social unrest is going to get worse

Eventually the market's going to say we say we're not gonna take this garbage anymore, this is absurd.

This is not going to be fun. Don't think I'm looking forward to this. It's going to be a disaster. I don't see the bureaucrats coming to their senses, so it's going to be the markets, and it's going to mean a lot of unpleasant times.

You're already seeing social unrest in many countries, and it's going to get a lot worse I assure you.

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Friday, December 20, 2013

US could go the way of UK

In 1918 the UK was the richest most powerful nation on earth. Within a generation it was in economic chaos, and within 3 generations it was bankrupt and the IMF had to bail them out. They couldn't sell government bonds things got so bad.

Today the United States looks a lot like it could suffer the same loss of wealth and power as the UK began 100 years ago. 

I'm afraid that...right now there's no restriction on the Federal Reserve at all, and at the same time there's no restriction on Congress anymore. They keep making these deals to put off any kind of serious cutbacks.

[Policymakers] everywhere are under no constraint. Central banks can print as much as they want, the governments spend as much as they want. So there's no reason this can't go on for a while, because any corrections due to tapering will probably be temporary.

Thursday, December 19, 2013

Indian politicians trying to make indians sell their Gold

India, which is the largest buyer of gold in the world, has a gigantic balance of trade problem and the Indian politicians are blaming it on gold. Gold is their second largest import after oil, and they cannot do anything about oil, so they're attacking gold. 

They've already put on lots of restrictions to limit people buying gold. And now the Indian politicians are trying to figure out a way to make the Indians sell gold. And if the Indian politicians somehow get their people to sell gold, whoo! Who knows how low it could go? 

But I hope that if and when something like that happens, I'm smart enough to buy more gold. 

Wednesday, December 18, 2013

Staggering currency debasement to boost Gold prices

Who knows how low gold could go? The government is under no constraint. Central banks can print as much as they want.

With all this staggering amount of currency debasement, gold has got to be a good place to be down the road once we get through this correction.

Tuesday, December 17, 2013

Silver vs Gold December 2013

I'm not buying either gold or silver...but if I had to buy one today, I'd buy silver because it certainly has gone down more than gold. So on a historic priced-basis if nothing else, I'd rather own silver.

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Thursday, December 12, 2013

Be prepared, be worried, and be careful

2008 was so much worse than 2000 because the debt was so much higher, you wait until 2014 or 2015 when the next crisis hits...Debt levels have gone through the roof, the next one's gonna be really bad. 

Be prepared, be worried, and be careful.

Wednesday, December 11, 2013

The longer the delay, the more painful

We are just making the situation worse, the debt is going higher and higher, the money printing is going higher and higher.

We've had 50 or 60 years of excess in America, we're going to have to pay the price someday whether you like it or not. 

The longer you delay the day of reckoning, the worse the day of reckoning will be. I'm not happy about it.

Tuesday, December 10, 2013

This is going to be a crisis or semi-crisis at the least

Eventually when they [Government] say we are going to cut back, the markets are going to go down substantially, and these are people, they are just government employees, they are going to be scared to death.

So they are going to start printing again until finally the market says we are not going to take this garbage paper anymore and the market is going to force these guys to stop. That's going to be called a crisis.

Source: RT Interview

Monday, December 9, 2013

Market could continue rally for a while

I cannot see a crash anytime soon. I can see corrections, I can see the markets going down a bit and for a while, but with all the money printing everywhere in the world, and with no spending constraints by Congress, this could go on for a while.

Friday, December 6, 2013

We are all going down eventually with the kicked can

The way the system works is when you fail, you fail, and you start over. In America we dont do that anymore and we are kicking the can kicking down the road. And when the can goes over the side, we're all going to go with it. 

Thursday, December 5, 2013

I'm Extremely happy in Singapore: Rogers

Singapore is certainly a very developed country, its an astonishing success story over the past 40 years. 

Everything works, Its got great healthcare, great education, I'm extremely happy living in Singapore, my kids love it, my wife loves it. We're keen on Singapore.

-Jim Rogers is a legendary investor that co-founded the Quantum Fund and retired at age thirty-seven

Wednesday, December 4, 2013

How the world economies have worked for thousands of years...

Its pretty simple. The way the world has worked for a few thousand years, is when people get into trouble, they fail. Confident people come along, re-organize the assets and start over. 

In America and the west, what they've said was no no, we are going to let the incompetent people take over the assets from the competent people and let them compete with the competent people with their assets. This is not good. The Japanese tried this in the early 90's and the Japanese had two lost decades. Its not going to work. In Scananavia in the early 90's, they let people go bankrupt, they had a horrible two or three years but since they have grown dramatically over the past 15 or 20 years.

Tuesday, December 3, 2013

Amazing thing happened in China recently

What happened in China the other week was very important. Its amazing, the Chinese are becoming more and more capitalist. It was very interesting they said the markets would be the final arbitrator, not the bureaucrats, not the government. In America its exactly the opposite, the Government says you don't decide we will do it, look at Obama Care, the government says we will figure out the solution. 

In China they say we will let the free open market decide. I would more prefer the Chinese open markets than where the government dictates everything.

Monday, December 2, 2013

Jim Rogers: I dont understand bitcoin

I'm sorry, I don't understand Bitcoin. I never really tried to get into it or figure it out. 

Every time somebody brings it up, I lose interest before it goes very far.