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

Veteran investor Jim Rogers, who co-founded the Quantum Fund with billionaire investor George Soros, has warned that “the worst is yet to come” for the U.S. economy. “The U.S. is going to suffer” as the worth of the greenback erodes additional, he predicted, emphasizing that inflation and the debt issues are going to worsen.

Jim Rogers Says ‘the Worst Is but to Come’

Veteran investor Jim Rogers issued a number of warnings concerning the U.S. financial system on Sputnik’s New Rules podcast, revealed final week. Rogers is George Soros’ former enterprise accomplice who co-founded the Quantum Fund and Soros Fund Management.

“The worst is yet to come,” the renowned investor warned. “It always comes later after normal fluctuations and corrections.” Rogers explained: “We have printed a lot of money, we have borrowed and spent a lot of money, which is wonderful for the short term, but eventually we have to pay the price.” He cautioned:

Inflation goes to worsen. The debt issues are going to worsen, and the U.S. goes to undergo.

Drawing a comparability between the current circumstances and the Eighties, a interval marked by important inflation, he harassed, “The inflation now is worse,” noting that the U.S. is now the “largest debtor nation in the history of the world.”

While stating that “things are okay at the moment,” Rogers famous that it gained’t final perpetually. “Somebody has got to pay this debt. Somebody has to print more money. Somebody has to borrow more money. And when you borrow huge amounts of money, interest rates will go higher and higher, inflation will go higher because so much money has been printed,” he detailed, emphasizing:

The worth of the U.S. greenback will lose an increasing number of worth as [the U.S.] prints extra. It at all times occurs this manner.

Using the British Empire for instance, Rogers highlighted that throughout the Twenties, Britain held the place because the wealthiest and most influential nation globally, surpassing all others. However, 5 many years later, the nation discovered itself in a dire monetary state, to the extent that the International Monetary Fund (IMF) needed to intervene.

“That will happen to the U.S.,” Rogers predicted, clarifying that “It gained’t occur this 12 months, however it is going to occur.”

Last month, U.S. Treasury Secretary Janet Yellen defended the dominance of the U.S. greenback, arguing that the USD is used extensively in commerce as a result of the U.S. has “deep, liquid, open capital markets, rule of law, and long and deep financial instruments.” However, she acknowledged in April that over time, using monetary sanctions “could undermine the hegemony of the dollar.” She additionally mentioned earlier this month that the continuing pattern of nations in search of to determine an alternate reserve forex to rival the U.S. greenback “is something that we simply have to expect.” Nonetheless, she emphasised that no nation is ready to replicate the USD, together with China.

While concurring with Yellen, Rogers identified that the treasury secretary overlooked the truth that the U.S. is “the largest debtor in history and the debt is skyrocketing and the money printing is skyrocketing.”

He cautioned: “Eventually we’ve got to pay the worth. Every nation in historical past has needed to pay the worth. Yes, she is going to print large quantities of cash. She will borrow and spend large quantities of cash, and they’ll assume they’re okay for some time, simply as they’ve for different international locations up to now. But, except one thing has modified in world historical past and in world economics, this won’t go on perpetually.”

Commenting on U.S. greenback options, the well-known investor mentioned, “I don’t see anything on the horizon yet,” including:

That might trigger a giant drawback if and when issues actually go flawed with the U.S. and with the U.S. greenback, the world can have a critical monetary disaster for some time anyway, except we are able to bond one thing else.

“It is extremely important, especially when a crisis comes, that you have your money in a place that you yourself understand a lot about,” he concluded.

Rogers has repeatedly warned concerning the worst bear market in his lifetime, stating that buyers needs to be apprehensive. He mentioned in May that the U.S. greenback’s time is coming to an end as a rising variety of nations worldwide search to de-dollarize.

Others have equally sounded the alarm about inflation, the debt disaster, and the demise of the U.S. greenback, together with economist Peter Schiff and Rich Dad Poor Dad creator Robert Kiyosaki. Schiff mentioned in June that the U.S. greenback decline shall be “far greater” than what Yellen described, noting that Federal Reserve Chairman Jerome Powell is “clearly worried” a couple of monetary disaster. He additionally warned of a U.S. greenback disaster, predicting that nationwide debt will “spiral out of control.”

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