This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
See Cramer's multi-million dollar portfolio for FREE and get his new book Get Rich Carefully! Learn More

Jim Rogers: Abolish the Fed, Buy Commodities, Short Stocks

What's the worst thing that Europe could do right now?

Rogers: The worst thing they could do is to keep doing what they have been doing for the last two years. Just saying don't worry, everything is going to be ok, we'll lend you some more money. The worst thing is to continue what they are doing. So far, Alix, if you look at all of the plans, for all of the countries, none of them show reduced debt next year or the year after or the year after that. They all show their debts continuing to rise. If they continue to do that, eventually the market is going to come to them and say no more. We won't give you any more money. We aren't going to play this game anymore and then the whole system could collapse.

Do you think they fiscal consolidation that France and Germany are trying to put forth this week is actually going to make any difference or is it more of the same?

Rogers: No, it's more of the same. The Germans have not really said for fiscal consolidation, they would like to have everybody to mind them, but the French aren't going to say "yeah, we will let Berlin run the tax system and our spending system." Even the French would say "do you remember the Second World War? We are not going to do that."

So what should the credit rating of the 17 nations in the Eurozone be?

Rogers: Different ones should be different things. I mean Greece is fail, whatever the fail is.

Should Germany and France still be AAA?

Rogers: No, of course they shouldn't. France certainly shouldn't. There's not many people that should be AAA anymore, maybe Finland, maybe China. I can't really think of many countries that should be AAA anymore.

China

What would a hard landing look like in China?

Rogers: Some parts of the Chinese economy are going to have a hard landing. The Chinese for two years now have been tightening up. They have raised interest rates six times. They have raised reserve requirements a dozen times. Just recently they started to loosen this up a little bit but they are trying. They are trying to bring down real estate, they are trying to make real estate developers go bankrupt so you are going to have a hard landing to use your terms in things like property in China.

But other parts of the Chinese economy are going to continue to boom: water treatment, agriculture, farmers are not going to know that the real estate speculators in Beijing and Shanghai are going bankrupt because they are working too hard and making too much money so you are going to have sectors of the Chinese economy with serious problems but it's not the whole Chinese economy. It's not like it was here.

Some have argued that China has taken the first steps to start pumping more money into the system by cutting reserve requirements, that they will continue to do so in 2012 especially when the government transitions leadership in late 2012, do you think it's going to happen?

Rogers: Well, you are right. They have loosened up twice in the last month or two. I wouldn't if I was China but I am not China. It looks as though they are going to start loosening up. I guess the real estate speculators are calling up and saying save me, save me, save me and they are starting to listen.

Bad idea?

Rogers: It's a terrible idea. They need to crack inflation. They've got a serious inflation problem. Either they have to beat inflation internally or they have to make the currency convertible. They are apparently not going to make the currency convertible. Now if they continue with inflation, then they are going to have even more problems a year from now, two years from now.

Stock quotes in this article: UUP, UDN, FXE, JYN, CNY, SZE 

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
DOW 16,501.65 -12.72 -0.08%
S&P 500 1,875.39 -4.16 -0.22%
NASDAQ 4,126.9670 -34.4910 -0.83%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs