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Thursday, September 8, 2011

My email exchange with Jim Rogers



So I emailed Jim Rogers this morning to ask him about the comment he made on CNBC regarding the Swiss National Bank pegging the Swiss franc to the euro.

This is what he said on CNBC:

"The move 'will work for a while, but the market will have more money in the end than the SNB,' Rogers, who was the co-founder of the Quantum Fund with George Soros, told CNBC.com."

I emailed him this:

Me: "Really, Jim? The Swiss will run out of Swiss francs?"

This was his reply:

"I guess you still do not understand currencies. As the article said, they can run the presses without stopping which would make the currency lose huge value which would destroy S as a financial center. They might never run out of francs, but that would destroy S1itzerland's main business. Please have someone read the article for you and explain it to you. If you have a blog, please post my answer to you. Thanks." -Jim Rogers

(Note the sarcasm.)

I responded with this:

Me: "So a 1.20 EUR/CHF exchange rate will destroy Switzerland's financial sector? Why didn't that happen when EUR/CHF was 1.68 a few years ago?"

Me: "And why is it so important for a nation of 7 million people to have a huge financial sector that comprises such a big percent of GDP?"

Me: Waiting for a response.

at

17 comments:

  1. mike normanSeptember 8, 2011 at 10:02 AM

    Just got this email from Rogers:

    "Please give me your web site so I can see the posting. If you prefer not to post it on yours, I know others that will including noting that you refused to post it on yours.

    Thanks."

    Condescending little jerk.

    ReplyDelete
  2. Jim BairdSeptember 8, 2011 at 10:06 AM

    So, in other words: the danger of the Swiss policy of weakening their currency is that (wait for it) it might weaken their currency?

    I can't beleive they let this guy out of his house, let alone on national TV...

    ReplyDelete
  3. mike normanSeptember 8, 2011 at 10:16 AM

    Just got this from him now:

    Oh, my. Now you have you proved you have no clue about currencies. Plus you demonstrate you know zero about CH, but you keep “commenting” on it. Amazing, but you have often proved you had no clue.

    Please tell us again when the US went off the gold standard.

    Thanks. Sorry it took the realization it would be published elsewhere for you to act. I suspect you will resort to argumentum ad hominem now rather than trying to defend your embarrassing claptrap.

    Thanks.

    So he's threatening me that he will publish our exchange "elsewhere." LOL!! Go ahead, Jim, but please include all of our conversation!

    ReplyDelete
  4. mike normanSeptember 8, 2011 at 10:17 AM

    I asked him to post comments here.

    ReplyDelete
  5. Dan FurlanoSeptember 8, 2011 at 10:20 AM

    Guy supports Ron Paul isn't that enough evidence about his knowledge.

    ReplyDelete
  6. GLHSeptember 8, 2011 at 10:22 AM

    I quit reading or listening to anything Jim Rodgers says many years ago. I can't believe I even bought his book.
    Keep of the good work.

    ReplyDelete
  7. MamMoThSeptember 8, 2011 at 10:55 AM

    Why do the Swiss need a financial sector of that size?

    Well, for instance to have the quality of life they actually enjoy. You don't think that comes from making good chocolate and watches?

    ReplyDelete
  8. jonathan davisSeptember 8, 2011 at 11:01 AM

    So devaluing is good? Rubbish. devaluing is politicians tinkering and we know what then happens - the people get screwed. A strong currency will almost always help an economy medium to long term. A weak one will almost always hurt an economy medium to long term. I know which i'd prefer if only I had a chance.

    ReplyDelete
  9. SchittReportSeptember 8, 2011 at 11:01 AM

    mike, why would you email someone who ceased to be of relevance to the financial services industry around 30 years ago and doesn't understand basic economics / modern monetary frameworks, to discuss currency matters?

    its like traveling back in time 100 years to ask someone about how to design mobile phones - he will either laugh at you, look at you incredulously or tell you you don't know what you're talking about - and i see all 3 of the above in the replies he sent back to you.

    ReplyDelete
  10. mike normanSeptember 8, 2011 at 11:04 AM

    Mammoth:

    Hahaha!! I know, I lived there for 10 years. Actually, Switzerland's banking sector is only about 12% of GDP according to recent data.

    ReplyDelete
  11. SchittReportSeptember 8, 2011 at 11:04 AM

    This comment has been removed by the author.

    ReplyDelete
  12. mike normanSeptember 8, 2011 at 11:09 AM

    Jonathan,

    Estonia and Latvia have strong currencies. So does Libya (until recently) and they had, like, 25% unemployment.

    I'm not for devaluing, I'm for letting it float. I'm not saying that Switzerland's decision to peg was a good one. I'm just saying that Rogers thought the market had more swiss francs than the central bank. That's a very misinformed statement. He also didn't answer my question: When EUR/CHF was 1.68 (Swissie 40% lower than current, pegged level) why didn't that destroy Switzerland's financial sector? He's saying a 9% downward adjustment is going to destroy Switzerland's financial sector.

    ReplyDelete
  13. mike normanSeptember 8, 2011 at 11:11 AM

    SchittReport:

    I don't know what possessed me to email him. I guess I thought his statement was so misinformed that I just had to email him and ask, "Really?"

    ReplyDelete
  14. JIm BairdSeptember 8, 2011 at 11:25 AM

    You obviously do not understand that the Market is all-powerful, all-seeing, and all-wise, Mike.

    All hail the Market, and protect us from it's terrible majesty! Those foolish gnomes in Switzerland think that just because they control the issue of francs, they can stand against it! They have been warned!

    ReplyDelete
  15. wh10September 8, 2011 at 3:51 PM

    At best, he is very loose with his words, at worst, very confused. He hasn't provided any defense for his thoughts and seems to be the first to resort to ad hominem attacks.

    Frustrating.

    ReplyDelete
  16. AnonymousSeptember 8, 2011 at 6:50 PM

    just remember, he's the one who went long cotton on the idea the Fed was printing money..... apj

    ReplyDelete
  17. collection guruSeptember 12, 2011 at 1:40 AM

    Mike Norman; you are attacking Jim Rogers? Search through net shows you, the "giggling marlin", announcing in 2006-7 buy anything when Stevie Wonder could have seen the mess coming.

    Thanks to listening to Jim, my family is doing well.

    John Rousseau
    Phoenix

    ReplyDelete