On whether this is not a demand-led inflation in commodity prices:

Whenever governments have printed money throughout history, people put their money in real assets, whether it’s rice or silver or natural gas. People protect themselves, they don’t just say “give me some more paper money.” And if you say it’s not demand: go to India, go to China, see how people are changing their lives and using more.” As for supply: “Commodities are based on supply and demand. You can have demand go down, but if supply goes down more you are going to have a bull market.”

Not surprisingly, Rogers see oil at $150, and the exchange between Rogers and some CNBC guy discussing the role of speculators (it is all the evil speculators’ fault, never the Chairsaint) is worth watching the clip alone.

Rogers’ response to CNBC’s desperate attempt to get him to list a stock or two for the lemmings to buy into, the response is priceless: “Commodities have outperformed stock by 10 times over the last 10-12 years. Why aren’t you doing only commodities. It’s outperformed stocks by 1,000%. To me it’s pretty simple, you should change the name to CommoditiesNBC.”

And, finally, his response to what his stock exposure is is not what CNBC wanted to hear. “I am short emerging markets ETFs, short Nasdaq ETFs.”

Brilliant as always.

Source: ZeroHedge.com

During a presentation in Chicago yesterday, Jim Rogers may have well laid the foundation for the next bubble predicted by Zero Hedge in October, namely rice. His comments may have also spooked some of the weaker hands in gold, which has tumbled by $20 today, primarily on concerns what Chinese tightening may do to demand for the precious metal. Of course, how tightening is bad for commodities and good for stocks is one of those questions that can only be explained by the Fed’s third mandate. From Bloomberg: “While gold “may go down for awhile,” the metal is “going to go over $2,000 in this decade,” Rogers, who owns gold, silver and rice, said today during a presentation to business executives in Chicago. Gold touched a record $1,432.50 an ounce in New York on Dec. 7. The price closed today at $1,387. “I’d rather own rice,” Rogers said. “I’d rather own something that’s more depressed than gold.””

Rogers has long been bullish the MOO complex, and the recent surge in food prices merely validates his most recent predictions:

Agricultural commodities are “going to boom” as demand increases in developing markets, primarily in Asia, he said. All commodities will be supported by the weakening dollar, which is losing value because Federal Reserve Chairman Ben S. Bernanke is “printing money” by buying Treasuries in an effort to shore up the U.S. economy, Rogers said.

“Paper money is made of cotton, and I’m long cotton, by the way,” Rogers said. “One reason I’m long cotton is because Dr. Bernanke is out there running the printing presses as fast as he can.”

Rogers said he doesn’t own shares in U.S. companies and is short U.S. long-term treasury bonds. The Chinese renminbi may provide “almost sure profits over the next five to 10 years,” he said.

“In the future, it’s the stock broker who’s going to be driving the cabs,” Rogers said. “The smart stock brokers will learn to drive tractors, and drive them for the farmers, because the farmers will have the money.”

In the meantime, with the fundamental thesis that printing money will do little to strengthen the dollar unchanged, non-dilutable currencies of the precious metal variety are merely enjoying this latest shake out, which is certainly being welcome by banks like the PBoC which has the buying a few billions worth of gold to even remotely approach the actual (supposed) holdings of “sovereigns” like the GLD.

As for those who wish to catch the next bubble during the parabolic phase, we may recommend an early positioning in rice and its derivatives. And yes, rubber will be next.

Video Here

Jim Rogers on Oil, Gold & the Biggest Bubble:

Oil Outlook for Next Week:

Jim Rogers: Commodities more attractive than Currencies:

Underinvestment in Ag & Industrial Commodities:

Jim Rogers on CNBC Asia, talks about food inventories and the coming food shortages and ensuing riots.

JIM ROGERS’ FAVORITE BULL MARKET

It’s still a quiet bull market in the “contrarian’s commodity investment.”

Last year, we kept you updated on the steady uptrend in Jim Rogers’ favorite commodity investment. It’s an uptrend that goes unreported in the mainstream financial press… and one you can see below in the investment fund DBA. This fund is a one-click way to buy the agricultural commodities corn, soybeans, wheat, and sugar.

Why is DBA the contrarian’s commodity idea? Well, commonly traded commodities like crude oil, gold, copper, and platinum have soared in the past year. Copper, for instance, is up 125% in the past 12 months. The ag complex, however, is in the “beaten down” category. But as you can see from today’s chart, the DBA is quietly building a series of “higher highs and higher lows.” It’s classic bull-market action… action that will likely carry DBA to an upside breakout above June highs.

We’ve spent time thinking about how an investor can earn income from farmland – without going to Brazil or Iowa to buy 640 acres and a tractor. In tomorrow’s Market Notes, we’ll show you a way to collect 15%-20% annual yields on this idea.