Jim Rogers, a top global investor and co-founder of the Quantum hedge fund, yesterday said he is skeptical about the reported improvement in the US job market and that the latest round of quantitative easing will not fix the US economy.
The US jobless rate dropped to 7.8 percent last month, the lowest since US President Barack Obama took office in January 2009, according to a report released on Friday by the US Department of Labor.
The labor agency also revised previous numbers to show the US economy created 86,000 more jobs in July and August than first estimated.
“I have learned not to take advice from the government, especially the US government, which frequently misleads its citizens,” Rogers said in a media briefing in Taipei.
There is an election coming in the US and the administration wants to win, he said, adding that most other institutes believe US unemployment remains worse than the official statistics suggest.
In its quarterly update of the World Economic Outlook, a survey of the global economy, the IMF yesterday raised the US’ growth forecast slightly to 2.2 percent this year from 2 percent, but put growth in the world’s largest economy at 2.1 percent next year, down from the 2.3 percent it had predicted in July.
Rogers, who is based in Singapore after selling his New York apartment in 2007, said that even if the reported drop in the US’ unemployment rate is true, it has nothing to do with the US Federal Reserve’s third round of quantitative easing that was initiated last month.
“Printing money has never worked [in stimulating economic recovery] throughout history,” he said. “Sometimes it worked in the short term, but it’s never worked in the medium or long term.”
Rogers cited Zimbabwe as an example, saying that if printing money could ameliorate debt, the cash-strapped African country would be a wild economic success. By early 2009, the Zimbabwean dollar was rendered effectively worthless as the government issued bills in denominations of up to 100 trillion dollars in a bid to rein in debt problems, which instead heightened inflation and poverty.
It is better to admit one’s mistakes and accept the reality of the situation so things could be improved once the worst part is over, he said.
Rogers, who believes Asia will drive the world economy in the future, said China is right in trying to slow its economy down for the past three years because of its inflation and property problems.
“It is the right thing to do [for China] as economic conditions in Japan and the West slow down,” he said.
Rogers has touted the value of investments in agriculture and precious metals, although he has been very clear that he feels silver is a much better investment than gold at the moment.
Rogers last visited Taipei in 2008 and met with President Ma Ying-jeou (馬英九) during both visits.
He said he did not settle in Taipei because the government insists on using traditional Chinese, whereas the rest of the world uses simplified Chinese.
“I want my children to grow up knowing what most other people know,” he said. “The Chinese language is going to be the most important language in my daughters’ lifetimes.”
After several years flying high as Asia’s best Nvidia Corp proxy, Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) is increasingly vying with other artificial intelligence (AI) stocks for investor attention. Stock traders are chasing a wider array of beneficiaries as mainstream usage of AI creates demand for hardware beyond the most-advanced chips TSMC makes for Nvidia. Subthemes from the deepening memory crunch to advances in robotics are also luring bids. At the same time, investment caps on single stocks are pushing funds to diversify, while retail investors long familiar with TSMC through its US depositary receipts are being offered a broader set of
UNDER MICROSCOPE: Taiwan detained three people who allegedly conspired to buy servers in Taiwan and export them using fraudulent documentation, prosecutors said Nvidia Corp chief executive officer Jensen Huang (黃仁勳) on Saturday urged Super Micro Computer Inc to tighten up on compliance after Taiwan detained three people this week for allegedly making fraudulent declarations about artificial intelligence (AI) servers made by its US partner. The development marked the nation’s first crackdown on semiconductor smuggling, which grew after the US slapped restrictions on exports of high-end chips such as Nvidia AI accelerators to China. Nvidia is “rigorous” in explaining regulations to all of its partners, Huang told reporters after arriving in Taipei. “Ultimately Super Micro has to run their own company,” he said in response to
TECH RELIANCE: Growth is increasingly reflecting an unequal K-shaped distribution, where technology sectors outperform and other industries struggle, an expert said Standard Chartered Bank has significantly raised its forecast for Taiwan’s economic growth to 9.5 percent this year, up from 7.6 percent previously, citing surging artificial intelligence (AI) demand driving exports, semiconductor production and investment. The upgrade reflects a sustained AI supercycle that continues to fuel demand for advanced chips and technology infrastructure, which form the backbone of Taiwan’s exports, the bank said in a report this week. “We raise our 2026 growth forecast to reflect a much stronger-than-expected first-quarter GDP figure,” Standard Chartered senior economist for greater China and Asia Tommy Wu (胡東安) said in the report. Driven largely by a 35.3 percent
Two of Taiwan’s international carriers, Starlux Airlines Co (星宇航空) and EVA Airways Corp (長榮航空), have retained the five-star airline rating awarded by international airline review organization Skytrax. Starlux was awarded the distinction for a second consecutive year, while EVA Air received it for the 11th straight year, Skytrax said in statements released yesterday and on Thursday last week, respectively. The five-star rating is considered one of the airline industry's highest honors and is awarded following professional audits of airline product and frontline service standards, Skytrax said. The ratings are based on in-depth assessments using unified global quality standards rather than customer review scores
RSS