Executive Global gain an exclusive interview with Jim Rogers, legendary American businessman, investor, and author of Street Smarts - Adventures on the Road and In The Markets.
EG: Jim, we've heard a lot of talk about 'tapering' as of late and the whole notion that the Central banks around the world will be raising interest rates soon. What do you feel the consequences would be should the Central Banks actually move forward with their decision to raise rates, and how do you think investors could be affected by this action on a a global scale?
EG: What do you think the likelihood would be of a kind of bi-metallic or gold standard being deployed at some stage within the next 10-20 years, due to the current condition of the global financial markets and sovereign governments worldwide?
JR: The world may well grasp for something like this since a coming crisis will be so terrible and the powers that be will be desperate when it happens.
EG: Jim, you are renowned for having traveled across the world and now reside in Singapore. What advantages do you feel that Asia presents as a location to executives in international business, and moreover, what impact do you feel that the Asia Infrastructure Investment Bank (AIIB) could have on the future of global infrastructural development and investment?
JR: Asia will be the most important area in the 21st Century. One needs to understand it and its languages. The world needs a competitor to the corroded western institutions. It is part of the shift to Asia. It is long overdue.
EG: You have spoken rather notably about agriculture being an important industry for investors to turn their attention to in the future. What investment vehicles do you think executives and ordinary people alike can utilise to get involved and take advantage of the future growth posed by a potential boom in the agricultural sector?
JR: There are many. Buy a farm and become a farmer. Or buy land and lease it. Get involved in agricultural industries such as seeds, fertilizer, farm machinery. Open restaurants, shops, etc. in agricultural areas. Learn about agriculture futures. Invest in RJA and/or RGRA.
EG: If you had to choose two critical attributes that an executive should possess in business that would enable them to retain the upper hand and prosper in even the most difficult economic times, what would these critical attributes be?
JR: Curiosity and independent thinking.
EG: What impact do you feel that the actions of the Swiss National Bank (SNB) to unpeg from the Euro currency could possibly have on the future of foreign exchange and currency investment?
JR: It is just another in a long line of bureaucratic and politicians’ failures. They have happened throughout history and more will come.
EG: What cautionary measures would you advise investors to take to protect themselves if they are considering investment in this asset class?
JR: Learn about currencies. Read some history. Learn that central bankers are very often wrong so act against them.
EG: This year, the UK became the first country in Europe to open a yuan-denominated money market fund, listed on the London Stock Exchange. China and Switzerland recently signed a pact to establish a yuan trading center in Zurich. What do you think the future holds for the status of the US dollar as the world reserve currency, in light of the internationalization and increasing popularity of the Chinese Yuan Renminbi?
JR: The US$ will eventually lose its status since it is a terribly flawed currency just as has happened to all its predecessors. The US is the largest debtor nation in the history of the world and it is getting worse. The RMB cannot be in the picture at the moment since it is a blocked currency. It will take a while even after it is totally free since it will take a while for people to get used to it, trust it, use it, etc., but it is the only currency I see on the horizon that can and will compete with the badly flawed US$.
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