(SOUNDBITE) (English) REUTERS REPORTER, TARA JOSEPH, SAYING:

"Jim, there is a flip-flopping sense out there as to when and exactly how the Federal Reserve is going to stop this massive monetary stimulus program. It's making investors nervous. Is the Fed actually doing more harm than good at this point?"

(SOUNDBITE) (English) INVESTOR, JIM ROGERS, SAYING:

"Oh of course Tara, this is absolutely insanity what's going on. It's not just the Fed, it's central banks. The first time in recorded history that all major central banks are printing a lot of money trying to debase their currencies. The world's floating around on a huge artificial sea of liquidity; it's going to dry up and when it dries up, we're all going to pay the price for this madness. But unfortunately the politicians..."

(SOUNDBITE) (English) REUTERS REPORTER, TARA JOSEPH, SAYING:

"Who's is most vulnerable...In terms of markets, which markets are most vulnerable to this change when we actually see it, this tapering off of monetary stimulus."

(SOUNDBITE) (English) INVESTOR, JIM ROGERS, SAYING:

"Well the ones that are most vulnerable are the ones that are having to borrow money in order to finance their balance of trade deficits. Indonesia is an example which comes to mind here in Asia. India's got the same problem. Turkey has the problem. You know, anybody who's using borrowed money to finance trade deficits, are the ones that are going to get hit first."

(SOUNDBITE) (English) REUTERS REPORTER, TARA JOSEPH, SAYING:

"And what is your best estimate as to when the Fed is actually going to taper?"

(SOUNDBITE) (English) INVESTOR, JIM ROGERS, SAYING:

"I don't have an estimate because I don't think it's going to happen anytime soon. Mr Bernanke's certainly not going to do it. He wants to get out while he can before it all falls apart. Mrs Yellen undoubtedly will not do anything at first because she knows - I hope she knows, I hope she's smart enough to know - that this is going to cause problems when they stop printing so much money. So I would suspect it would go on for awhile, maybe 2015 even. And if and when they do start cutting back, the markets are going to react - and react pretty badly - and then they'll probably loosen up again. You know, these are not very smart people. They're government bureaucrats and they think like government bureaucrats."

(SOUNDBITE) (English) REUTERS REPORTER, TARA JOSEPH, SAYING:

"We're getting close to the end of 2013. Christmas, believe it or not, is just around the corner. What is really important in terms of strategy going into 2014? What are you watching for?"

(SOUNDBITE) (English) INVESTOR, JIM ROGERS, SAYING:

"All you have to do is watch the central banks of the world, Tara, because if they're all going to continue to print money, then a lot of it is going to wind up in financial markets. That's the most important thing that's going on in the world right now. Now, if there's a war, if a war breaks out, you certainly should be alert in case something like that happens. But just watch the central banks because what they're doing in my view is a terrible, terrible mistake. But it doesn't matter what I think, that's what they're doing. And as long as they're printing all this money, it's going to affect all of us."

(SOUNDBITE) (English) REUTERS REPORTER, TARA JOSEPH, SAYING:

"Okay tell me where you think one should invest in China and also what is the biggest hindrance, the biggest worry you have about China?"

(SOUNDBITE) (English) INVESTOR, JIM ROGERS, SAYING:

"I don't have any worries about China. Every country that evolves has setbacks, economic setbacks, political setbacks. And you know in the nineteenth century, America had this horrible civil war, had 15 depressions with a 'd', massacres in the streets, very few human rights, very little rule of law, and yet we became the most successful country in the twentieth century. China will have problems, I don't know what. The only thing that worries me about China is the water problem and that if they don't solve the water problem, there is no China story. Now they know that too and they're spending a lot of money trying to sort out their water problem. But that's the only thing that would end the China story. Everything else is temporary and it's not a problem."

ENDS

 

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