Jim Rogers on CNBC – He Owns the Dollar Right Now

The ever-insightful Jim Rogers was on CNBC yesterday. He continues to believe in the commodities bull market, the secular decline in the dollar (as the World’s reserve currency) and the rise of China. Most notably, he said that he owns the dollar right now, due to widespread pessimism about it. See below for the video and the summary.

 

 

Summary:

 

  • The next recession will be worse. The US Government has already ramped up spending enormously & the Fed has already monetized unprecedented amounts of debt. How will they ‘solve’ things next time?
  • We need to cut our expenditures in a draconian fashion.
  • The US is the largest debtor nation in the history of the World.
  • The US dollar will lose its reserve currency status in the same way that the Pound Sterling lost its reserve currency status.
  • Jim Rogers owns the dollar because there is widespread pessimism in the market. He regards his position as a shorter-term proposition.
  • There are serious supply problems in commodities.
  • Jim Rogers intends to buy more gold and silver on any weakness.
  • Jim Rogers is long commodities & currencies and short emerging market stocks and US technology stocks.
  • QE3 is likely. QE2 will come back, but not necessarily with the same label (they might call it ‘cupcakes’!).

See here for our collection of rare historical economic data.

Posted Jun 9, 2011
by | Categories: Other
  • http://greshams-law.com Aftab Singh

    Although Jim Rogers has repeatedly reiterated that the dollar will lose its reserve currency status over the past several years, he has really nailed the rallies in the dollar for the past 3 years. Most notably, during 2008, at the intermediate low at the end of 2010, and perhaps now…??

    Basically, he gets that there is this long-term tendency towards a ‘short-squeeze’ in dollars, and although printing is usually the response, sometimes that momentum is quite powerful (like now maybe..)..