Jim Rogers, Bull in China

An interesting answer to a question posed to this formed partner in George Soros investment firm. See what happens to all extra money(liquidity) in the market. Pretty similar things are happening in India as well. Stock market UP!, real-estate UP and finally commodities UP!

Why has the Chinese stock market taken off?

The Chinese have done a very good job [with the economy] over the past 20 years. But the one mistake they've made is they have continued to block the currency and made it nonconvertible. That's causing huge liquidity to develop in the country, and that's causing trouble. It has really intensified in the past two or three years. They've got all this money sloshing around that's been flowing into China and can't get out. It's going into the mainland stock market and driving up prices. It's going into commodities. And it's going into real estate.

 

Read the full article here - http://money.cnn.com/magazines/fortune/fortune_archive/2007/12/24/101935724/index.htm?postversion=2008010309