Elite investor Jim Rogers rings the alarm on US debt and dollar dominance

Jim Rogers, Bow Tie

Jim Rogers.Enterprise Insider Video

  • Jim Rogers warned about US authorities debt, de-dollarization, and a number of asset bubbles.

  • George Soros’ former enterprise companion stated shares, bonds, and actual property are broadly overvalued.

  • Rogers touted commodities as providing good worth, and dismissed the concept of the BRICS bloc.

America’s money owed have ballooned to harmful highs, the US greenback’s dominance will not final, and there are bubbles in shares, bonds, and actual property throughout many international locations, Jim Rogers has warned.

“The USA is the biggest debtor nation within the historical past of the world,” Rogers stated throughout a Nomad Capitalist Stay 2023 interview that was filmed in early September and launched on YouTube this month.

“No nation has ever been as deeply in debt because the US is, and that can not be good,” he continued, including that historical past reveals “someone’s going to endure.”

Rogers is finest generally known as George Soros’ former enterprise companion, and the cofounder of Quantum Fund and Soros Fund Administration. He laid out why de-dollarization seems inevitable, however the dollar most likely will not be usurped for some years but.

“The period of the US greenback is coming to an finish,” he stated, asserting that no foreign money in historical past has remained dominant for greater than 100 or 150 years. Nevertheless, he argued the one actual contender to the buck proper now could be the Chinese language yuan, and it will not overtake the greenback till China absolutely deregulates it and makes it universally accessible.

On a associated observe, Rogers dismissed the BRICS (Brazil, Russia, India, China, and South Africa) bloc as “nothing greater than a figment of someone’s creativeness.” He joked that somebody on Wall Avenue most likely checked out a world map and invented the grouping after visiting solely one of many 4 international locations. Rogers acknowledged the person nations’ potential, however underscored that worldwide alliances not often final lengthy.

The veteran investor additionally flagged that many in style belongings around the globe are overvalued, with one notable exception.

“Most inventory markets are at or close to all-time highs, which does not flip me on,” he stated. “Most bond markets are in a bubble — rates of interest have been the bottom in recorded historical past in a lot of the world. Property in lots of locations is a bubble.”

“The most cost effective asset class I do know are commodities,” Rogers stated, noting that sugar and silver are nonetheless down sharply from their all-time highs. “These usually are not bubble numbers,” he added, emphasizing that he sees wealthy potential in belongings like agricultural merchandise and metals going ahead.

Rogers, 80, has made a number of dire pronouncements lately. In Might, he predicted the worst bear market of his life with “hassle” throughout shares, bonds, actual property, and currencies. Final summer time, he rang the alarm on US authorities debt and the greenback’s primacy, and cautioned that painful interest-rate hikes could be wanted to convey down inflation.

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