Jim Rogers: Buy the Lamborghini Dealership in Saskatchewan - Andrew Bell: Learn to drive a tractor!!

[LWeber]

http://www.bnn.ca/News/2012/6/13/Gold-correction-could-go-on-for-a-while-Jim-Rogers.aspx

Jim Rogers says he's steering clear of the gold market until the precious metal falls to at least $1,300 an ounce.
"Gold is having a correction, and I presume that correction is going to go on for a while. Who knows, I might buy at higher than $1,300," the chairman of Rogers Holdings tells BNN.
Commodities in general are in what he presumes to be a normal correction. "I mean there are various conspiracy theories going around about oil. It's just a normal correction as far as I can see."
But Rogers, the author of several books, including A Gift to My Children: A Father's Lessons for Life and Investing, says that agriculture will be the place to be.
"Prices have to go much higher… or we're not going to have any food at any price. Prices have to go up to attract labour and capital into agriculture."

Fertilizer and seed businesses will also reap the rewards. "If you don't want to go into some of those businesses, get the Lamborghini dealership in Saskatchewan, because all those farmers are going to have a lot of money," Rogers muses.

"Bay Street's going to be a disaster. Saskatchewan's going to be great," he says.

EUROPE 'ALARMING'

Now based in Asia, Rogers looks at the European debt crisis and says everything alarms him about the current situation. "You don't solve a problem of too much debt with more debt. It's ludicrous what's happening in Europe. And when it all collapses, eventually they're going to run out of other people's money and then the problem's going to be worse than if they went ahead and bit the bullet now," he says.
But turning to China is not the solution. He says the American and European economies combined are ten times the size of the growing Chinese economy.
"They can't save us," he says. "We have to save ourselves

[fjlip]

Canadians have record debt also, mainly the ridiculous house prices. We need a correction, but that will hurt a lot.
Not that rosy here either.

Rich farmers only IF the RAIN stops till Nov.
Shitty, but expensive crop will kill many dreams.

[charliep]

I will note the vast majority of homeowners are baby boomers who were lucky enough to have bought houses for the purpose of living in them and are effectively hedged against rising or falling prices. The value of the house I live in is irrelevant until I want to sell it.

The sad thing is a young family who wants the same priveleges the baby boomer generation has enjoyed. Yes, they start off with expectations of a 2,000 plus square foot house versus 1,000 for our generation. Yes, they may have used equity in their house to buy unproductive toys. Many families are just trying to put a roof over their heads and food on the table. I would suspect there are at least one or two parents here who have helped their kids with the down payment on their first house and in their own way exposed.

[cottonpicken]

Gotta love the three talking heads trying to
marginalize one of the worlds greatest
investors,goofs.

So andy and kimmy and white hair guy if a bushel of
wheat use to be worth a barrel of oil,where are you
guys when the light goes out?In the dark.

[Cattleman]

Just to clarify cotton,is your position on commodities solely based on central bank fiscal policies, and where money supply expansion is going to take us, and very little to do with fundamentals? That may be right, but just curious.

Sure the white haired guy heard it in the 80's....it was also said i teh 1800's!

Still is hard to swallow sometimes given fundamentals. Sounds like a sell job on ag commodities versus any analysis?

Number of farmers is pretty irrelevant given the new technology and equipment and rapid increase in the SIZE of farms. There are a lot ability to increase productive capacity as only a portion of the land in the world is being farmed to its productive capacity. As many of the developing countries increase their wealth, it will increase demand for food, BUT they will also be able to improve their infrastructure, technology, and input use to grow much more food as well!

[cottonpicken]

Basically,real-estate is dead,stocks are
stagnant,bonds are the biggest bubble the world has
ever seen,inflation is destroying cash and democrat
governments are spending, this is pushing investors
into tangibles....for the past decade.

[cottonpicken]

Should note the great possibility of all asset classes
deflating hugely in the short term because of the
massive problems facing the western economies.

[parsley]

http://www.moneynews.com/Economy/Rogers-
worry-recession-2013/2012/05/31/id/440789

[Cattleman]

I generally agree with your first comment, but couldn't agree more with the last. Sure bond values could crash hard, but that will not trigger instant inflation. Inflation needs money, and velocity. Bonds burst, it will be short term negative.....question being, what is short term, a few months, or a few crop years? I think there will be much better opportunities to buy commodities from an investment perspective, and a need for those who are long commodities (farmers) to have protection.

I have seen a few of these analysts's interviews, where it is more of a sell job to prop commodities, and themselves up rather than contribute solid fundamental reasons. That said, long term the money flow game may trump our current "regular fundamentals" but the game will be very different when that happens, and not sure what the best strategy is right now to get my financial house in order.

Pretty amazing how terrible my mutual funds have been over the last few years. Not big on housing either.

[LWeber]

15:05 14Jun12 RTRS-CENTRAL BANKS PREPARING FOR COORDINATED ACTION TO PROVIDE LIQUIDITY IF NEEDED AFTER GREEK ELECTION-G20 SOURCES
15:15 14Jun12 RTRS-EXCLUSIVE-Central banks ready to combat Greek market storm
* Elections in Greece, Egypt, France could roil markets
* Central banks prepared to counter turmoil with liquidity
By Stella Dawson and Lesley Wroughton
WASHINGTON, June 14 (Reuters) - Central banks from major economies stand ready to take steps to stabilize financial markets and prevent a credit squeeze should the outcome of Greek elections on Sunday cause tumultuous trading, G20 officials told Reuters.
A senior U.S. official cautioned that the Greek election will not provide "the definitive signal on what happens next" in the euro zone debt crisis.
But if severe market strains emerge after an unusual confluence of three elections this weekend - there are important polls in Egypt and France as well - central bankers are on standby to ensure enough cash is flowing through the financial system.
"The central banks are preparing for coordinated action to provide liquidity," said a senior G20 aide familiar with discussions among international financial diplomats. His statement was confirmed by several other G20 officials.
It could mark a dramatic backdrop to the G20 summit of world leaders who will gather in Los Cabos, Mexico, on Monday and Tuesday where Europe's escalating crisis tops the agenda.
Leaders will be accompanied by finance ministers playing an advisory role. The ministers, who usually keep a low profile at these summits, have scheduled a working dinner on Monday and lunch on Tuesday.
Depending on the severity of the market response, an emergency meeting of ministers from the Group of Seven developed nations could be held on Monday or Tuesday in Los Cabos, with central bankers joining by phone, a second G20 official said.
Their first line of defense probably would be a statement that policymakers are ready to take whatever steps are needed to assure market stability.
This usually is a signal for technical steps to keep cash flowing through the financial system. Currency swap lines already are in place which can be drawn upon to ensure there are enough dollars available if global investors rush into the safety of U.S. assets. Central banks also can hold extra auctions to flood banks with short-term cash via repurchase agreements.

[cottonpicken]

Well the timing thing is tough,i always think of those
giant domino displays,one gets nocked over and then
it exponentially gets higher and bigger,faster than
people think,and i believe a few have been nocked
over already.

I blab bonds all the time because of how big that
sector is.

Kick in the derivatives and its many multiples of the
other asset classes.

Treasury yields must be defended at all cost's,this
cause's a currency issue which is bad but more
manageable than a yield spike.

Anybody in the early eighties who seen rates over
18% and still thought wheat was going to the
moon,simply did not understand market function.

You need to think of capital as electricity it WILL seek
out the best return.

So now back to bonds,if the debt can't be paid back
or will be paid back with printed dollars you have a
currency problem.

The interesting part is how these debt problems are
popping up in so many places at once.

[ajl]

The only problem with Roger's analysis is
this the new poor can't afford to eat. So
there wont be any western Canadian farmers
driving Lambos.

[JoeyPotato]

I am going to order a red one......to match my combine of course.

[sumdumguy]

The most important thing I have learned about
fickle markets is that just about when the
average Joe thinks he's got it figured aout, the
market squiahes him like a bug. No one knows
what tomorrow will bring- could be deflation just
as easily as inflation.

[Hopperbin]

I will order green metalic, even though its not offered. for ten grand I can get it done at any body shop.