Jim Rogers: “Everyone Will Suffer.”
July 30, 2013 1 Comment
Jim Rogers, the commodities investor, argues that the Canadian economy is not as bad as in many Western countries.
However, he believes there is a “major disconnect” between “asset values and economic realities” all over the world. Central banks, desperate for growth, are inducing these distortions by aggressively pumping money into their economies.
This dependence on central bank intervention to propagate what he calls an “artificial boom” guarantees disaster.
So even if Canada’s footing seems strong, the interconnected nature of the world’s economy assures that problems in the US, Asia, and Europe are problems for everyone.
Basically, it’s business-as-usual in the maturing business cycle.
He still looks favorably on agriculture. I can corroborate what he says about farming. Part of my family owns a big farm in Alberta.
In general, farming is a horrible business and no one wants to get involved in it. As more people, particularly in Asia, rise from grinding poverty and increase their demand for food, supply will be significantly constrained.