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Jim Rogers Predicts End of Dollar Dominance as US-China Tensions Escalate

Renowned investor Jim Rogers believes that the U.S. greenback dominance is coming to an finish as the tensions between the U.S. and China mount. The rising nationwide debt, the protests, the political uncertainty surrounding the presidential election, and nations searching for a USD various in concern of sanctions will take a toll on the greenback, he defined.

Jim Rogers Discusses End of USD Dominance

Jim Rogers shared his view on the tip of the U.S. greenback dominance in an interview with RT publication Saturday, factoring in current world occasions. He co-founded the Quantum Fund in 1973 with billionaire investor George Soros, which was thought of one of essentially the most profitable hedge funds in its heyday.

Firstly, Rogers defined that “the US is now the largest debtor nation in the history of the world, and it’s getting higher and higher every day,” emphasizing that it’ll take a toll on the greenback. The U.S. nationwide debt is at present greater than $26.73 trillion. The veteran investor opined:

Traditionally, the US greenback has been the soundest foreign money on this planet. But custom adjustments … the US greenback is coming to its century or so of dominance, and one thing else will change it.

The funding guru pointed to the examples of the British pound and Dutch guilder, noting that each have been beforehand thought of essentially the most dependable currencies.

According to Rogers, the greenback may nonetheless present power subsequent yr as soon as the present turmoil within the U.S. is over, together with the protests and the November presidential election. However, he added that it’ll “probably be [the dollar’s] last shot,” reiterating his stance that the greenback is only a few years away from dropping its dominance. Some analysts have predicted that the presidential election end result may collapse the U.S. greenback and ship the costs of gold and bitcoin skyrocketing.

Meanwhile, the world’s second-largest American debt holder, China, is planning to chop its U.S. debt holdings as tensions with Washington escalate, Chinese state-run newspaper The Global Times reported. Experts in Beijing count on China to cut back its U.S. debt holdings by 20%, from $1 trillion to $800 billion. The paper additional warns that it may even “sell all of its US bonds in an extreme case like a military conflict.”

Rogers emphasised that China decreasing American debt will put strain on U.S. rates of interest, including that they “should be going up.” From the Chinese standpoint, the famed investor stated that “it’s a smart economic and investment move,” one that might strengthen the Chinese yuan, which he famous has already been occurring for a number of weeks. Rogers elaborated:

If they promote US debt, they promote {dollars}, due to this fact their foreign money goes greater.

In addition, a number of nations have already began in search of another foreign money to the U.S. greenback as a result of present turbulence within the U.S. and the Trump administration’s robust international polices. not too long ago reported that the Russia-China de-dollarization is approaching a “breakthrough moment.”

While these plans are possible underway in Beijing, Rogers believes that the Trump administration will downplay this menace. “You know, Trump thinks he’s smarter than everybody in the world, so they’ll probably do whatever they want to do and think, ‘Don’t worry – we’re Washington and we can take care of it,’” he was quoted as saying.

This isn’t the primary time Rogers has warned in regards to the U.S. greenback dropping its dominance; he additionally warned in regards to the USD dropping its world’s reserve foreign money standing, as did Goldman Sachs. Last month, the investor additionally predicted that the worst financial downturn in his lifetime is coming. Meanwhile, Morgan Stanley not too long ago estimated that the Chinese yuan will change into the world’s third-largest reserve foreign money inside 10 years, and a number of other analysts expect the U.S. greenback to crash. A rising quantity of traders now say bitcoin is an efficient funding for this setting, however Rogers believes that governments is not going to let cryptocurrency flourish.

Do you agree with Jim Rogers? Let us know within the feedback part beneath.

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