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Why Are People Willing to Lend U.S. Money at Less than 2%?

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    Rogers Holdings Chairman Jim Rogers on the current trends in Treasuries.

  • Duration 3:29
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Home -- -- government's financial situation is so bad.

Why are people willing to -- this country money at a rate of less than 2% over ten years.

Jim Rogers can answer that he's.

Street smarts adventures on the road and in markets and -- Rogers holdings companies and he joins us.

Surprisingly jammed from the very -- United States easily -- on the finally this from page I didn't say it.

I am delighted to be a day in negative out of -- -- Unita said time and good morning I'm out here you know looking at farmland.

I've tried to tell you before become a farmer.

Did -- near not -- back is stating gonna farmland in aisle five dollar alone know that but why land at this point and will you buy it was borrowed money if which is -- if there's an inflationary environment.

Well if one can borrow money at a fixed rate I would certainly urged him to these days and in US dollars because.

In my view interest rates will certainly be going higher over the next decade or two in May be another.

Drop first.

For no -- these interest rates are absurd and will not last.

And why would I buy land because agriculture is going to be one of the most exciting parts of the world economy for the next twenty or thirty years day and you should learn to drive a.

Tractor Y know how to drive tractors cannot probably learn before you did even though we are from the second hope -- same part of a contrary sort of -- -- since the south as one big state Jim but talk to me about and -- look and you'll stay on dubbed treasury rates roll quick.

What is is it -- is this going to come home to roost for us as a nation because.

Again congress and our lawmakers are getting a free pass and not really do anything about our long term financial situation the calls we can still borrow at such -- rights.

Well we can still barred such low rates because of Federal Reserve this in their buying bonds that this is an artificial.

Development right now and normally -- and when central banks anywhere in the world do something -- artificial.

It comes home to haunt them eventually and this is going to come home to haunt us to.

The problem the situation and I'm short -- government bonds right now doesn't mean I know what I'm doing because I've tried it a couple of times before -- not gotten my timing right.

The problem -- and is there may be more turmoil coming in the currency markets you see what's happening with the yen right now.

And if that's happened a lot of people may push have put their money into the US dollar.

And in the US government bond market just -- they don't know what else to do it's the wrong thing to do what.

They'll do it anyway.

Did you like agricultural commodities obvious -- 'cause.

When your mind farmland and in in Iowa.

Jim what about other commodities at this point some -- your metals gold here.

It's been very volatile -- for -- me say I'm not buying farmland here I'm here because of farmland and I -- looking at farmland but.

So far nobody so mean and I haven't bought any but it certainly of spectacular farmland in various parts of the world.

Will be great investments going forward as far as metals are concerned I own -- I own gold I'm not selling my -- go -- by any stretch of the imagination.

Not sure it's it's time to jump in I'm not buying at the moment but if they go down I assure you I'll be buying more.

Jim those great to see you as always -- well but see you.

In this neck of the woods compared to where usually our -- day and thank him -- go I'd look at some farmland now aren't you keep us posted now Jim Rogers may well -- -- all right.

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