Tuesday, November 25, 2014

Jim Rogers on Interest Rates and central banks

Most central banks follow the market, and the market dictates what has to happen. In the US, interest rates have already started going up a bit, and they will continue to go higher, in my view. The US central bank will be forced to cut back its bond purchases and probably they will, and that will lead to higher interest rates.

At some point, we are going to have interest rates that will affect markets though that may not happen for a while. But when it happens, central banks will panic, the US central bank will panic and then they all will again start buying bonds in order to calm down the markets. Then again, interest rates will come down for while, and there will be bubble in the markets.

Jim Rogers is a smart investor who co-founded the Quantum Fund with George Soros in 1973. By 1983 the fund gained more than 4000 percent.