Jim Rogers, a renowned American investor and co-founder of the Quantum Fund with George Soros, conveyed that the era of the US dollar as the world’s primary currency is likely nearing its end. He indicated that the influence of the American currency is on a downward trajectory globally.
Jim Rogers has gained recognition for his unconventional investment tactics, focusing on enduring trends and shifts in the global economy. He is highly regarded for his astute opinions on commodities, foreign currencies, and burgeoning markets. Author of seminal works like “Investment Biker” and “A Bull in China,” Rogers offers valuable insights into his investment philosophies. He is particularly bullish on Asia’s long-term economic prospects and consistently promotes investment in the area.
Frequently invited as a speaker and commentator in the media, Rogers dispenses market insights and investment advice across various platforms, including interviews, written articles, and TV segments. His unorthodox perspectives and knack for pinpointing investment avenues through macroeconomic analysis have earned him a reputable standing among investors.
During his interview with Andrew Henderson, the Founder and CEO of Nomad Capitalist, Rogers identified the Chinese yuan as a potential successor to the US dollar. However, he emphasized that China’s stringent capital regulations are a significant barrier to the yuan’s rise to global prominence. He holds a substantial amount of US dollars but is aware that no currency has maintained a leading role globally for more than a century to a century and a half.
He further stated that currently, the yuan is the only currency he sees as having the potential to challenge the US dollar’s dominance. The yuan’s restricted tradability compared to other major currencies like the euro is a hindrance, and China needs to relax these restrictions for the yuan to become a serious contender. He mentioned that China has been making slow progress in this area for the past two decades, but it’s not sufficient in his view.
Regarding the BRICS alliance, which includes Brazil, Russia, India, China, and South Africa, Rogers was skeptical. He described the group as more of a conceptual idea than a functional alliance, noting that their activities seem to be limited to annual meetings without much substance.
Rogers said:
“They say they’re expanding, but they’re not expanding anything more than just annual meetings that I can see. There’s nothing behind the concept.“
In a June interview with Real Vision, Jim Rogers issued a grim forecast for the global economy, anticipating a bear market more severe than any he has ever experienced. Rogers likened the current economic conditions to those preceding the 2008 Financial Crisis, but indicated that the future looks even bleaker.
Rogers identified the enormous rise in global financial debt as the main trigger for the looming bear market. He emphasized that debt levels have surged so significantly since 2008 that the forthcoming bear market will be unparalleled in its severity. Rogers stated that the next bear market will be “the worst in my lifetime,” attributing this to the “gigantic increases in debt” that have occurred over the past 14 years.
Drawing on the inflation crisis of 1980 as a cautionary tale, Rogers warned that today’s financial markets could face a similar situation. He remembered the sky-high interest rates and treasury yields that were necessary to control inflation during that era, suggesting that a similar set of circumstances could be imminent.
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