Jim Rogers, chairman of Roger Holdings, says he doesn’t see any impact on global financial markets due to S&P downgrading US credit rating. Excerpts from an email interview with Mehul Shah:
What would be the impact of S&P downgrade of US credit rating on global financial markets and emerging markets like India?
None, everyone already knew the US was the largest debtor nation in history — except S&P and Moody’s.
Does the theory of decoupling still hold good? Last time, emerging markets showed better resilience and recovered faster?
I am short emerging markets.
With both US and euro zone in trouble, will there be a currency crisis?
Yes.
You have been maintaining that printing money has been a bad idea? But what are the options left for the US to bring back its economy into shape?
Cut spending drastically, take the pain, and start over.
What would US crisis mean for countries with high US Treasury exposure, like India and China?
The world will suffer if there is a crisis in the US.
What are the commodities which look attractive to you?
Agriculture commodities.
Will you be looking at stocks in emerging markets after the correction? No.