Posted on 03/08/2022 8:59:23 PM PST by lasereye
Renowned investor Jim Rogers discussed the end of the U.S. dollar and the future outlook for cryptocurrency in an interview published by the Economic Times Sunday. Rogers is George Soros’ former business partner who co-founded the Quantum Fund and Soros Fund Management.
He was asked about the outlook for the U.S. dollar and where he sees the dollar index headed. “I own U.S. dollars partly because when turmoil comes, people look for a safe haven. They think the U.S. dollar is a safe haven for historic reasons,” Rogers began.
However, the veteran investor added:
But what is happening with the U.S. dollar now is the end of the U.S. dollar because an international currency is supposed to be neutral but in Washington, they are now changing the rules.
“Now if Washington does not like you, they put sanctions on you and you cannot use U.S. dollars,” he stressed.
“So, many countries are starting to look for a competitor — China or Russia or India, Iran, Brazil … some countries are starting to look for a competing currency, and they should because Washington does not play fair anymore,” he continued.
Since Russia began its invasion of Ukraine, the United States as well as a growing number of other countries have been placing sanctions on Russia.
Russia has about 16% of its reserves in U.S. dollars and 32% in euros. As billionaire investor Bill Miller recently described: “They have almost 50% of their reserves in currencies that are controlled by people who want to do them harm.” Miller agrees with Rogers that other countries are starting to look for alternative currencies to the U.S. dollar.
Rogers added:
“Now if Washington does not like you, they put sanctions on you and you cannot use U.S. dollars,” he stressed.
“So, many countries are starting to look for a competitor — China or Russia or India, Iran, Brazil … some countries are starting to look for a competing currency, and they should because Washington does not play fair anymore,” he continued.
Since Russia began its invasion of Ukraine, the United States as well as a growing number of other countries have been placing sanctions on Russia.
Russia has about 16% of its reserves in U.S. dollars and 32% in euros. As billionaire investor Bill Miller recently described: “They have almost 50% of their reserves in currencies that are controlled by people who want to do them harm.” Miller agrees with Rogers that other countries are starting to look for alternative currencies to the U.S. dollar.
Rogers added:
Of course, the U.S. is the largest debtor nation in the world. So, for fundamental reasons and political reasons, people are looking for competing currency.
“I do not know what it will be yet. I hope I am smart enough to buy it when you find it. I do not like saying it. I am an American but I do not like to see what they are doing to the American dollar,” he opined.
Rogers was also asked, “Can cryptos ever be an alternative to the U.S. dollar index?” He replied: “Well it could be. Many people have made a lot of money trading crypto.”
He explained that crypto bulls say that cryptocurrency will be the new money. “I know that every country in the world is working on computer money now, including the U.S.,” he pointed out. However, he said that the U.S. will not say it is new money.
Regarding cryptocurrency, he noted that “Governments like control” and “Governments like monopoly.” The veteran investor elaborated:
I do not like it but that is the way governments are, and I just suspect that they will either tax it or regulate it or outlaw it or something because they do not want to lose control.
Rogers has warned that governments could ban cryptocurrencies on several occasions. He said it is the reason he did not invest in bitcoin. However, in May last year, he said he regretted not investing in BTC.
Corruption. Our self appointed elites are so corrupt that they are about to piss away the most powerful man made weapon on earth. The US Dollar... All because of vanity and corruption. They will be eaten first.
I saw this “man” on The Glenn Beck show a few years back, as many as 7 years but my memory is shot. He was a smirking a hoe, talking about how China was the going thing. His family was there, and learning Mandarin. “Just the way of the world” he said. “You go to where the prosperity takes you” he said through his grin. Beck really didn’t give a response to his word, and seemingly left him to hang himself with his own words. It was about the same time as the Google guys were on, and talking about their goal “was to be the mind of god”.
I think he made his kids grow up in China. motocycled around the world.
When hasn’t Jim Rogers seen the end of the US dollar. Same swan song for decades from him.
“They have almost 50% of their reserves in currencies that are controlled by people who want to do them harm.”
That would seem to be a classic definition of a hedge.
Exactly!
“I do not know what it will be yet. I hope I am smart enough to buy it when you find it. I do not like saying it. I am an American but I do not like to see what they are doing to the American dollar,” he opined.
One of my basic rules is also: Don't trust Jeremiahs who don't offer a concrete alternative.
Regards,
Rogers’ early stuff is highly recommended. His writing and interviews on depreciation and CAPEX really helped me when I was getting started in investing 20 years ago. We are going through the same stuff today with the oil companies and miners. What he wrote then remains true today.
That said...I haven’t paid attention to anything he’s said since his motorcycle trip around the world with his girlfriend.
Foreign currency reserves of the nation are the “savings” of a nation, used to pay foreign debt, imports of necessary materials, or as a “rainy day” fund in case of economic trouble.
Seizing those savings is no different from seizing the savings of people who donate to protesting truckers.
You can do it ONE TIME, and then people will consider you a thief.
The US is being destroyed by arrogant, self-important, blind ideologues in Washington DC.
Singapore, actually. Much nicer than China. Its china for beginners.
So where will people move money?
.
Rogers is a clown. I remember him making a bunch of predictions after the crash in 2008 and he was very wrong. If you want to lose money listen to him.
Exactly. Broken record permabear.
Red China is so backwards many Americans live in their own compounds (where bats aren’t served as food); Americans who have lived there short-term (and in India) on work assignments would never return to either.
A good reporter might have asked him what percent of his personal assets were invested in Russia.
But no.
Singapore is in no way red china.
I wouldn’t listen to this tool.
No doubt; Singapore is very different. Isn’t it a city-state? They won me over when they caned that American for vandalizing cars...
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