"Supply Destruction" to boost Commodity Prices ?

wombat42_2

Well this is what Jim Rogers says:
http://jimrogers-investments.blogspot.com/

Commodities Bull will last even longer


Latest Jim Rogers`s comments on this financial crisis:

The commodity bull market will last longer as a consequence of the global financial crisis, Jim Rogers CEO of Rogers Holdings, told Commodity Online in an exclusive interview.

”We have had eight or nine periods of forced liquidation over the past 100 to 150 years wherein everything was liquidated without regard to fundamentals. This is such a period,” Rogers said.

Rogers, said the commodities market is these days hit by the prospects of growth slowdown in countries like China and economic pessimism in the US and Europe.

”Historically the things which have come out best on the other side are things where the fundamental have been unimpaired. Commodities are the only thing I know with unimpaired fundamentals,” he said.

”The cyclical demand for commodities may slow, but the secular supply will be badly affected so the commodity bull market will last longer and go further in the end,” he added.

"I have an enormous amount of cash and I've been using it to buy more Japanese Yen, more Swiss Francs, more agricultural products....There's a liquidation phase going on, where everything is being liquidated. They're selling everything in sight," Rogers said last week speaking on CNBC.

"In a period like this the way you make money coming out of it is to own the things were the fundamentals have not been impaired."

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And more http://www.cnbc.com/id/27317048

In Times of 'Zombie Banks,' Buy Commodities: Jim Rogers

The fundamentals for commodities were not affected by government policies that are propagating inflation, Jim Rogers, CEO of Rogers Holdings, told CNBC Wednesday.

"I bought more agriculture this week," Rogers told "Squawk Box Europe." "What's happening is that there will be less supply of everything if we ever come out of (the credit crunch). Nobody can get a loan for a zinc mine or, long term, increase crop production."

If history is any guide, things to buy are things that are doing fine right now like water treatment companies in Asia or agriculture, Rogers added.
Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben Bernanke should resign for keeping "zombie banks" that should be allowed to fail alive, he said.

The Japanese government refused to let financial institutions fail in the 1990s, Rogers said.

"It's 18 years later and their stock market is 75 or 80 percent below what it was 18 years ago," he added.

Rogers also said that interest-rate cuts are coming.
"I know we are going to get aggressive rate cuts everywhere, that's why I'm long short-term government bonds in the U.S., but shorting long-term government bonds because it's not going to help, it's going to add to inflation," he said.