Roger is predicting a currency crisis caused from dollar devalution and sells signals to get of US treasuries. As a result Rogers is cash rich and looking for opportunities in China and Commodities.

Asset preservation, foreign investment in countries with savings, and unimpaired investments. Rogers is buying agriculture, Japanese Yen, Swiss Francs, Agriculture products. Liquidation is causing shorts to be covered. When the market is caving, it is not time to buy equities. Buy commodities that the fundamentals are not unimpaired.

Asia is upset at dollar devaluation because it weakens their currencies. Asians are feeling a sense of "helplessness". Countries that saved their money are asked to bailout.

Pain is necessary, recession is necessary, savings rebuilt, and jobs lost. Savings is the way to build equity that can be used to rebuild business. Short-term, let people go bankrupt, start over, allow sound investors too take over. This is the way the world works. Laffer breaks down.

Is ordered de-leveraging of an orderly economy possible? No. We are going to have to take some pain. Let the people, who are sound, succeed. Currencies are going to gyrate and inflation is going to unleash. Singapore has gigantic reserves. When you print gigantic levels of money that leads to inflation. Everything is being liquidated. Own things where the fundamentals have not been impaired.
Source(s):
Interview by Rogers


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