In a new book and a series of recent interviews, he’s explained the best investments to make now as central bankers flood the planet with paper money, creating a nightmare environment for investors where “everything has problems.”
“For the first time in recorded history, we have nearly every central bank printing money and trying to debase their currency. This has never happened before,” Rogers told Chris Martenson at PeakProsperity.com.
Rogers blasted the “overconfident incompetents” who run the U.S. government and Wall Street. He labeled U.S. President Barack Obama as “delusional.”
He said as central banks maintain policies of low interest rates and inflation, individuals and households are being punished, while the irresponsible are being rewarded.
Jim Rogers on the Death of the “Saving Class”
Now invested mostly in commodities and currencies, Rogers has a gift for spotting long-term trends – from the housing crash and credit crisis, to the rise of Asian economies.
In his new book called “Street Smarts: Adventures on the Road and in the Markets,” Rogers says the biggest danger to global economies is the deterioration of the “saving class.”
Rogers believes Ben Bernanke’s monetary policies are benefiting only a few people in Washington and Wall Street — at the expense of the middle class.
“Many people saved their money…and didn’t buy four or five houses with no job and no money down,” said Rogers. “They did…the right thing. But now, [they] are getting virtually no return on their savings and their investments. They’re bailing out the people who did it the wrong way. The people who did save…are being destroyed.”
Throughout history, Rogers says, destroying the saving class has always had disastrous results, citing 1920’s Germany as a prime example.
“This has happened before, and the aftermath has always had grievous economic, social — and often human – costs,” said Rogers.
Jim Rogers: “Farmers Driving Lamborghinis”
Mindful of the uncertainty created by the global money printing spree, Rogers says investors should stick with what they know.
“Don’t go putting your money into some hot tips you hear from a guy on radio or TV. Certainly don’t listen to the government telling you what to do,” he told Glenn Beck.
Repeating a recent theme, Rogers would still put his money in hard assets — especially farmland and agriculture.
“We’re going to have serious food shortages, not just in America but in the world,” said Rogers. “When I speak to universities and students, I tell them all they should be studying agriculture. They don’t want to do it. They all want to get MBAs.”
He noted that the United States graduates over 200,000 MBAs a year, versus roughly 5,000 in 1958. Instead, he thinks they should be studying agriculture or mining.
“Soon, stockbrokers will be driving taxis, while the farmers are driving Lamborghinis,” he said.
The market seems to like agriculture as well.
Among ag stocks recently hitting 52-week highs were Kraft Foods Group Inc. (NASDAQ:KRFT), ConAgra Foods Inc. (NYSE:CAG), General Mills Inc. (NYSE:GIS) and Kellogg Co. (NYSE:K).
Another way to tag along on Rogers’ ag bet is to invest with him directly in the Rogers International Commodity Index Agriculture Total Return Exchange Traded Note (NYSEARCA:RJA).
The fund tracks a diversified cross section of big agriculture players in the global marketplace and has a tasty 7.2% annualized return for the past three years.
Your Guide to Financial Freedom. We’re in the midst of the greatest investing boom in almost 60 years. And rest assured – this boom is not about to end anytime soon. You see, the “flattening of the world” continues to spawn new markets worth trillions of dollars; new customers that measure in the billions; an insatiable global demand for basic resources that’s growing exponentially; and a technological revolution even in the most distant markets on the planet. And Money Morning is here to help investors profit handsomely on this seismic shift in the global economy. In fact, we believe this is where the only real fortunes will be made in the months and years to come.