"Turning to Asia and the economy everyone's focused on: China. You’re on record saying that the economic slowdown in China won't get too serious. Do you maintain that view?
JR: I'm not sure where I said that. Where did I say that?
You've said that there’s unlikely to be an economic crash like famed short-seller, Jim Chanos, and others are forecasting.
JR: That’s not right. What I’ve said is that China is the next great country in the world. There’ll certainly be setbacks along the way.
In the 19th century, as America was rising to power, it had 15 depressions, a horrible Civil War, massacres in the streets and little in the way of human rights. And yet, America turned out to be pretty successful.
China will have setbacks along the way. I have no idea what, when, why or how. But China is the largest creditor nation in the world and if and when they have setbacks, I would rather be investing money with creditor nations such as China than debtor nations.
I have frequently said that we’ll have people in the real estate business going bankrupt in China because the government is trying to cool off that particular sector. But on the other hand, other parts of the Chinese economy will continue to do extremely well.
If you’re in agriculture in China, you won’t know whether real estate speculators in Shanghai are going broke because you’ll be too busy making money yourself."