Grace Cheng, of Daily Markets, recently interviewed Jim Rogers about his thoughts on China, Inflation and US Bonds.

Jim Rogers on Inflation:

Well there is inflation now in many things. There’s temporary deflation in raw material prices and in some property. But throughout history, whenever you’ve had gigantic printing of money and spending of borrowed money, it has always led to higher prices. Unless something is dramatic, it’s going to happen again.

On the British Pound:

More doomed [than the US Dollar]. It will disappear sooner. If it weren’t for the North Sea, the British Pound would have already disappeared. It’s more doomed. The UK has been exporting oil for 26 years; within the decade, the UK will be a net importer of oil again, and they have nothing else to sell to the world once the oil dries up.

On China investing in US Bonds:

Well if I were China, I would scale back. If I were everybody, I would scale back. The US bonds yield virtually nothing, the dollar is a flawed currency, inflation is coming, higher interest rates are coming. I would think everybody would be scaling back including China.

On where to invest in China:

Agriculture, water treatment, people who build power generation, people who build infrastructure, tourism. Many areas of the Chinese economy will continue to do well no matter what happens to the world economy.

Jim Rogers has seen many economic cycles in many different countries around the world. While he may not be the world’s best market timer, I am confident he knows what he’s talking about. Giving some consideration to his ideas and recommendations may be well worth our while in the near future.