Jim Rogers is out with a new podcast interview with China Money Podcast which can be listened to here.
Important points include:
- China’s property bubble is different from the U.S. as it is more of a pricing problem rather than a rampant credit bubble where practically anyone can get a mortgage without a job or money down.
- The Chinese banking system isn’t as much of a concern as U.S. and European banks.
- The renminbi stands a good chance of appreciating against the U.S. dollar if allowed to trade freely; the U.S. dollar will likely fall in value within the next few decades.
- China pegged its currency to the dollar at the behest of the U.S. in the 90′s; they aren’t manipulating their currency but simply have a managed float against the dollar.
- If another country told the U.S. government how to manage its currency, “America would be furious, America would be shrieking, yelling, and probably dropping bombs…”
- Best investment in China is with commodities and the renminbi and avoid buying into property.
- China rescuing Europe through buying bonds is a money losing endeavor but could buy influence.
- “Finance in the West will be in trouble for another 5-10 years.”
- World’s climate is changing but it’s also changing on other planets- “I don’t think they drive SUVs on Mars.”
About once a week, there is a new headline or article out on China’s property bubble.Â It could pop any day now but the general consensus among Austrian minded economists and finance experts is that China will see great economic growth as soon as the malinvestment is finally cleared.