Jim Rogers Blasts The Insanity Of the Feds while remains bullish on Oil & Commodities

Here are some latest comments from Jim Rogers.

• Jim Rogers: Oil Bull Market Has Years to Go
  
  Thursday, June 12, 2008 5:18 PM
  
  The bull market for oil has many years to go before it peters out, says billionaire Jim Rogers, chairman of Rogers Holdings.
  
  There are several factors for this view, but the primary one is that "known sources of petroleum are dwindling," Rogers told Bloomberg in an interview.
  
  Global oil supplies could fall far short of need and expectations in the next 20 years, reported the International Energy Agency in mid-May. The agency long expected supply to rise to meet demand of 116 million barrels a day by 2030.
  
  It now expects oil output to struggle to reach 100 million barrels in that time frame.
  
  These market conditions will make life difficult for airlines — and airline stocks — well past 2010 and will also impact Federal Reserve policy in the coming months, Rogers said.
  
  Rogers has proved astoundingly prescient since suggesting that investors buy into the older, industrial economy back in 1999 when gold and oil were coming off 25-year lows and when the Internet stock market was soaring.
  
  Now in his mid-60s, Rogers retired from full-time work when he was 37, and invests for fun. ( source of article: here )

And fresh on Forbes.

• "We think the bull market in commodities still have a long way to go, especially when you look at growth rates in China, India, the Middle East, North Africa and throughout most of the developing world, where demand for just about every commodity is rising at unprecedented rates," Rogers said. ( Taken from Forbes article here )

Do note that Jim Rogers made them comments when he announced he is teaming up with S-Network Global Indexes to launch The Rogers Van Eck Hard Assets Producers Index. Unlike the Rogers International Commodity Index, the new index tracks the performance of companies that deal in commodities--rather than performance of the commodities themselves.

And in another article on MoneyNews, Rogers blasts the insanity of the US Fed

• Jim Rogers: Helicopter Ben Bernanke 'Insane'
  
  Friday, June 20, 2008 2:40 PM
  
  The Fed, explains commodities bull Jim Rogers, has made things worse by printing huge amounts of money, causing huge inflation, and driving the dollar down.
  
  Plus, American taxpayers will have to pay off the $400 billion spent on Bear Stearns.
  
  "If the system is so fragile that the collapse of the fifth-largest investment bank in America could bring the whole thing down, what’s going to happen in a few years when the No. 2 or No. 1 banks go bad?" Rogers asks.
  
  "What’s Bernanke going to do, get in his helicopter and fly around the country repossessing cars and houses? This is insane."
  
  So, Rogers say he's buying airlines.
  
  It's counterintuitive: Twenty-four airlines went bankrupt last year, and five of the seven largest U.S. air carriers went bankrupt during the past decade.
  
  "That’s great news," Rogers says. "Bankruptcies are signs of bottoms, not signs of tops."
  
  "I fly a lot and planes are full," Rogers notes. "You read every day that the airlines are cutting capacity and raising fares. How much more bullish can you get?"
  
  Rogers' current investment picks also include Swiss francs, Japanese yen, agriculture and oil — but no financials right now.
  
  "I'm short on the investment bank ETF, which means I’m short on all of them," Rogers observes.
  
  "Some of these companies have horrendous balance sheets."
  
  Financials go for unbelievably low prices in bear markets, he points out, but this bear hasn’t hit bottom yet.
  
  Rogers — who is also short Citibank and Fannie Mae — says the excesses in financial markets have been far too great.
  
  "You don't see any 29-year-old cotton farmers driving Maseratis," Rogers says.
  
  "But a lot of 29-year-olds on Wall Street are driving them. This is not the way the world is supposed to work."
  
  However, the oil bull market has years to run, Rogers says, even though big market reactions can still occur.
  
  He points out that the price of oil has dropped by 50 percent twice since 1999.
  
  "Unless someone discovers a lot of oil very quickly in accessible areas, we’re running out of known oil reserves," Rogers says.
  
  "If the price of oil goes high enough, they’ll be drilling on the White House lawn and Buckingham Palace."
  
  And because food reserves are at their lowest level in 50 years, unless someone starts bringing on a lot more capacity soon, Rogers believes the agricultural bull market has got a ways to go, too.
  
  Meanwhile, prices for nickel, zinc and silver are down 50 percent to 80 percent from their historic highs, yet Rogers is waiting to add more of these commodities to his portfolio.
  
  "It looks like Congress is about to do something that will drive commodity prices down, and that will create a fantastic buying opportunity," he says.
  
  Rogers advises investors, however, not to panic in bear markets.
  
  "Bear markets perform a necessary service by cleaning out the system," he says.