Business Intelligence Middle East
Legendary global investor and chairman of Singapore-based Rogers Holdings, Jim Rogers said the global economy is at the risk of prolonging a recession after reports over the past two days showed US home sales plunged by a record and Japan’s export growth slowed for a fifth month in July.
Speaking to Bloomberg in a phone interview from Singapore on Tuesday, Rogers said: “We never got out of the first recession.”
“If the US and Europe continue to slow down, that’s going to affect everyone," he added.
The legendary investor doesn’t subscribe to the idea that China can lead the world out of recession.
"The Chinese economy is 1/10 of the U.S. and Europe, and India is a quarter of China, they can’t bail us out,” he said.
Rogers advised China and other global economies should increase interest rates to contain a surge in inflation.
“Everyone should be raising interest rates, they are too low worldwide,” he said.
“If the world economy gets better, that’s good for commodities demand. If the world economy does not get better, stocks are going to lose a lot as governments will print more money.”
Rogers has been saying, in recent interviews with various media channels, that there will be another recession, probably in 2012.
Jim Rogers has taught finance at Columbia University’s business school and is a media commentator worldwide. He is the author of Adventure Capitalist, Investment Biker, Hot Commodities, A Gift to My Children, and A Bull in China. See his website.
