More social and political turmoil is likely in the future so commodities prices will continue rising, renowned investor Jim Rogers, CEO of Rogers Holdings, told CNBC Thursday.... "I don't own very many equities," Rogers, who co-founded the Quantum Fund with billionaire George Soros in the 1970s, said in an interview. "I don't know what's going to happen but I expect more currencies turmoil, more social unrest, more governments collapsing so I invest more in currencies and commodes than stock," he added.
Rogers said he has had long positions in commodities for 12 years and has warned repeatedly that food prices will "go through the roof."
Shortages of food products are likely to last for a long time and create more upheaval and the ranks of farmers around the world have diminished, he said, adding that for some soft commodities it will take years to increase the stock.
"You don't just snap your fingers and have palm oil, all this takes time," Rogers said.
In June of 2009, he had a very similar stance, and he was correct (of course he had this stance for a while as well). These guys below put together a cogent argument.
The National Inflation Association guys have put together a relatively well produced video channel that appears to have an agenda, but also has many, many valid points on the topic. The phrase du jour... "The Keynsian solution to economic slowdown is to keep the bubble going". Ain't that the truth?
What is not mentioned in the interesting video below is that food inflation in US supermarkets is concealed by deceptive packaging. One way to surreptitiously raise the price on a box of serial is to put less cereal in the box and sell the box for the same price. This happens more than many suspect, particularly since most consumers don't bother to even glance past the pretty colors that illustrate the brand.
I have made an FX trend model available for all to download. Its 10 mb, containing a lot of data, but you'll definitely get your money's worth. The model is available here: BoomBustBlog Complimentary FX Index model
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