Renowned Investor Jim Rogers Warns ‘US Is Going to Suffer’ as Dollar’s Value Erodes Further

Veteran capitalist Jim Rogers, who co-founded the Quantum Fund with billionaire capitalist George Soros, has warned that “the worst is yet to come” for the U.S. economy. “The U.S. is going to suffer” arsenic the worth of the dollar erodes further, helium predicted, emphasizing that ostentation and the indebtedness problems are going to get worse.

Jim Rogers Says ‘the Worst Is yet to Come’

Veteran capitalist Jim Rogers issued respective warnings astir the U.S. system connected Sputnik’s New Rules podcast, published past week. Rogers is George Soros’ erstwhile concern spouse who co-founded the Quantum Fund and Soros Fund Management.

“The worst is yet to come,” the renowned capitalist warned. “It ever comes aboriginal aft mean fluctuations and corrections.” Rogers explained: “We person printed a batch of money, we person borrowed and spent a batch of money, which is fantastic for the abbreviated term, but yet we person to wage the price.” He cautioned:

Inflation is going to get worse. The indebtedness problems are going to get worse, and the U.S. is going to suffer.

Drawing a examination betwixt the contiguous circumstances and the 1980s, a play marked by important inflation, helium stressed, “The ostentation present is worse,” noting that the U.S. is present the “largest debtor federation successful the past of the world.”

While stating that “things are good astatine the moment,” Rogers noted that it won’t past forever. “Somebody has got to wage this debt. Somebody has to people much money. Somebody has to get much money. And erstwhile you get immense amounts of money, involvement rates volition spell higher and higher, ostentation volition spell higher due to the fact that truthful overmuch wealth has been printed,” helium detailed, emphasizing:

The worth of the U.S. dollar volition suffer much and much worth arsenic [the U.S.] prints more. It ever happens this way.

Using the British Empire arsenic an example, Rogers highlighted that during the 1920s, Britain held the presumption arsenic the wealthiest and astir influential federation globally, surpassing each others. However, 5 decades later, the state recovered itself successful a dire fiscal state, to the grade that the International Monetary Fund (IMF) had to intervene.

“That volition hap to the U.S.,” Rogers predicted, clarifying that “It won’t hap this year, but it volition happen.”

Last month, U.S. Treasury Secretary Janet Yellen defended the dominance of the U.S. dollar, arguing that the USD is utilized wide successful commercialized due to the fact that the U.S. has “deep, liquid, unfastened superior markets, regularisation of law, and agelong and heavy fiscal instruments.” However, she acknowledged successful April that implicit time, the usage of fiscal sanctions “could undermine the hegemony of the dollar.” She besides said earlier this period that the ongoing inclination of countries seeking to found an alternate reserve currency to rival the U.S. dollar “is thing that we simply person to expect.” Nonetheless, she emphasized that nary state is capable to replicate the USD, including China.

While concurring with Yellen, Rogers pointed retired that the treasury caput near retired the information that the U.S. is “the largest debtor successful past and the indebtedness is skyrocketing and the wealth printing is skyrocketing.”

He cautioned: “Eventually we person to wage the price. Every state successful past has had to wage the price. Yes, she volition people immense amounts of money. She volition get and walk immense amounts of money, and they volition deliberation they are good for a while, conscionable arsenic they person for different countries successful the past. But, unless thing has changed successful satellite past and successful satellite economics, this volition not spell connected forever.”

Commenting connected U.S. dollar alternatives, the celebrated capitalist said, “I don’t spot thing connected the skyline yet,” adding:

That whitethorn origin a large occupation if and erstwhile things truly spell incorrect with the U.S. and with the U.S. dollar, the satellite volition person a superior fiscal situation for a portion anyway, unless we tin enslaved thing else.

“It is highly important, particularly erstwhile a situation comes, that you person your wealth successful a spot that you yourself recognize a batch about,” helium concluded.

Rogers has repeatedly warned astir the worst carnivore marketplace successful his lifetime, stating that investors should beryllium worried. He said successful May that the U.S. dollar’s clip is coming to an end arsenic a increasing fig of nations worldwide question to de-dollarize.

Others person likewise sounded the alarm astir inflation, the indebtedness crisis, and the demise of the U.S. dollar, including economist Peter Schiff and Rich Dad Poor Dad writer Robert Kiyosaki. Schiff said successful June that the U.S. dollar diminution volition beryllium “far greater” than what Yellen described, noting that Federal Reserve Chairman Jerome Powell is “clearly worried” astir a fiscal crisis. He besides warned of a U.S. dollar crisis, predicting that nationalist indebtedness volition “spiral retired of control.”

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