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Jim Rogers: 'US government's inflation data is a sham'
Leading investor Jim Rogers has attacked the US government's
inflation data as a "sham" that is causing the
central bank to massively understate price pressures.
Jim Rogers expects interest rates in the US to go much higher over the
next few years Photo: Clare Kendall
By Andrew Trotman 11:18PM GMT 07 Dec 2010
Mr Rogers, who shot to fame after co-founding Quantum Fund
with George Soros, argued the Federal Reserve uses
information that relies too heavily on housing prices.
"I expect interest rates in the US to go much, much, much
higher over the next few years," he said, adding
that he is betting against US Treasuries.
The core personal consumption expenditure index, which
strips out food and energy costs, is the Fed's preferred measure of inflation.
This was flat in October for the second straight month.
"Everybody in this room knows prices are going up for everything,"
Mr Rogers told the Reuters Summit.
The investor remains bullish on commodities given the debt crises
facing many country across the world.
"If the world economy gets better, commodities are going to go
up in price because there are shortages.
If the world economy does not get better, you
should own commodities,
because [central banks] are going to print more money,"
he said. "Real assets are the way to protect yourself.
Mr Rogers also predicted that the price of gold will rise
eventually above $2,000 an ounce.
The price of spot gold hit a record high of $1,430.95 an
ounce before falling back to close on Tuesday at $1,409.35.
Attacking the EU's "bad economics" for "corroding the value
of the euro", Rogers painted a stark picture of the
single currency's future.
"I don't expect the euro to be around within 10 to 15 years,"
he said, adding that the Chinese yuan is the most attractive currency today.
Leading investor Jim Rogers has attacked the US government's
inflation data as a "sham" that is causing the
central bank to massively understate price pressures.
Jim Rogers expects interest rates in the US to go much higher over the
next few years Photo: Clare Kendall
By Andrew Trotman 11:18PM GMT 07 Dec 2010
Mr Rogers, who shot to fame after co-founding Quantum Fund
with George Soros, argued the Federal Reserve uses
information that relies too heavily on housing prices.
"I expect interest rates in the US to go much, much, much
higher over the next few years," he said, adding
that he is betting against US Treasuries.
The core personal consumption expenditure index, which
strips out food and energy costs, is the Fed's preferred measure of inflation.
This was flat in October for the second straight month.
"Everybody in this room knows prices are going up for everything,"
Mr Rogers told the Reuters Summit.
The investor remains bullish on commodities given the debt crises
facing many country across the world.
"If the world economy gets better, commodities are going to go
up in price because there are shortages.
If the world economy does not get better, you
should own commodities,
because [central banks] are going to print more money,"
he said. "Real assets are the way to protect yourself.
Mr Rogers also predicted that the price of gold will rise
eventually above $2,000 an ounce.
The price of spot gold hit a record high of $1,430.95 an
ounce before falling back to close on Tuesday at $1,409.35.
Attacking the EU's "bad economics" for "corroding the value
of the euro", Rogers painted a stark picture of the
single currency's future.
"I don't expect the euro to be around within 10 to 15 years,"
he said, adding that the Chinese yuan is the most attractive currency today.
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