Rogers: Dollar to Be ‘Devalued’
Jim Rogers on Bloomberg TV
The U.S. dollar will be “devalued” as policy makers seek to weaken it, undermining the greenback’s role as an international reserve currency, said Jim Rogers, chairman of Rogers Holdings in Singapore.
“They think that if you drive down the value of your money, it makes you more competitive, now that has never worked in history in the long term,” said Rogers. The ICE’s Dollar Index has gained 19 percent since Rogers said in an interview on April 27 he expected a dollar rally “about now.”
The dollar is “going to lose its status as the world’s reserve currency,” Rogers said yesterday in a televised interview with Bloomberg News. “It will be devalued and it will go down a lot. These guys in Washington, they want to debase the currency.”
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Source:
Rogers Says Dollar to Be `Devalued,’ Buys Commodities
Ron Harui and Mike Schneider
Bloomberg, Nov. 25, 2008
http://www.bloomberg.com/apps/news?pid=20601087&sid=aP5uFzsclsDQ&
November 25th, 2008 at 8:36 am
I’m not sure why anyone listens to Rogers anymore. He is now ‘wrong way’ Rogers. He has absolutely no proof or data to support his outliers. Rogers should have written his book and walked away. Instead he keeps inserting his foot in his mouth about topics he doesn’t know anything about. The prize fighter who can’t seem to quit while on top.
November 25th, 2008 at 11:09 pm
I share many of Rogers’ concerns. He attempts to draw a historical comparison between the U.S. in the present and the U.K. in the past, and also a comparison between the U.S. and Japan. As he pointed out, Great Britain was the wealthiest nation on earth in 1918 and went seriously downhill over the next 30 years. I agree that it could happen to us, to some degree. There are numerous examples throughout history of empires collapsing; the Roman empire in particular comes to mind (although Rogers didn’t mention that).
Also especially relevant is Japan in the 1990’s. They bailed out countless companies, and now their national debt is twice the GDP. One look at the Nikkei index over the last 20 years tells a lot of what has happened in their economy. I agree that what happened in Japan could happen here; and that some of what happened to (or with) the U.K. could happen to us as well.
As far as specific investment ideas, he is particularly bullish on agricultural commodities (e.g., sugar), although he admits to being a “horrible” market timer. I agree that commodities will probably have a big run, but not yet. It may be another 6 months or more before the next bull market begins in crude oil, for example.
His views are largely consistent with those of Peter Schiff.
November 26th, 2008 at 5:42 am
to me, Rogers is illuminating the greatest potential threat to those that believe they have ‘wealth’ in the form of U$D, and/or U$D denominated contracts.
DL, above, makes many of the necessary operative points.
LSS: we have massive problems ahead of us, they will not be solved ‘from the top’, if we are to, begin to, correct them, it is, truly, up to each and every of us..