Jim Rogers USD Super Bull said “I own more dollars than any other currency, as I see more GLOBAL problems coming,”
Jim Rogers is right again. He forecasted correctly the USD bottom and that because of global problems the USD will be strong again. He sees more upside for the US currency in the next few years. Even though the USD is not fundamentally good currency, it will be strong because of global problems and other central banks wanting to devalue their currencies. The ECB is just about to announce a large scale QE – legal money printing machine.
“When people are scared instinctively they run to the dollar, as it is perceived to be a safe haven even though it is not,” Rogers stated. As always, Jim hopes that he’s “smart enough” to close his USD positions before the currency’s uptrend is over, because the USA has $18 trillion in debt.
“The US is the largest debtor nation in the history of the world. Never has a nation ever got into this much debt and its getting higher and higher every day,” he stated.
“Washington is spending and borrowing even more and not doing anything about it. No nation would be able to get out of this without a crisis. . . . What will need to happen for the U.S. dollar to lose reserve status? More of what is already happening — debts going higher.”
We at OctaFinance want to point out that the US President, Barrack Obama recently said that the USA is strong but Russia is in tears. While the second is most probably true, the first is doubtful. With $18 trillion in debt, its normal to be a party over there for a while. The debt bubble financed cheap the whole shale industry, which reduced the US deficit and made the USD strong as the USA imported less oil. The cheap oil led to one of the biggest Russia’s problems. So what will happen when the trade reverses? Shale companies go under, can’t refinance even though interest rates are low? Oil production goes down?
The greenback is a “terribly flawed currency,” Rogers added, but he owns more US dollar than any other currency. He expects more currency volatility and more people buying US dollars.
Jim Rogers USD Super Bull said: “When people are scared instinctively they run to the US dollar, as it is perceived to be a safe haven even though it is not. Washington is spending and borrowing even more and not doing anything about it. No nation would be able to get out of this without a crisis. Even our friends are starting to say it is out of control. The South Koreans do not have too much choice but are saying it is not going to work. People are looking for alternatives. The Chinese and the Russians are looking for something to use besides the US dollar in their trades and in their reserves.”
For a protection from a possible USD collapse in a few years, Rogers suggests investors to own real assets such as farmland and commodities.
“Owning real assets, like farmland, will protect you. Own assets that can come out the other side of a crisis with real value,” Jim said.
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