International investor Jim Rogers doesn’t “have any confidence in the US dollar as a sound currency” because it is so flawed.
He warns that the dollar will turn into a bubble that will pop in a few years amid “turmoil everywhere” after the U.S. hikes interest rates.
“I own the U.S. dollar. It is my largest single currency,” he explained to ET Now.
“I do not have any confidence in the US dollar as a sound currency. It is one of the most flawed currencies in the world,” he said.
“The U.S. is the largest debtor nation in world history and it is getting even worse. I own it because there is more turmoil coming in the world and in such times, people seek a safe haven,” he said. “The U.S. dollar is not a safe haven but people think it is, and they do not know what else to do. It might even turn into a bubble because people get desperate.”
Investors worry that U.S. officials are growing more concerned about the strong dollar’s impact on the U.S. economy.
And Rogers predicts a bleak future for the U.S. currency.
“U.S. rates will go higher, there is no question about that. But the only question is when it will happen. After rate hike, part of the turmoil will come from interest rates going higher,” he said.
“My fear is that a year or two from now, the U.S. dollar could literally turn into a bubble because people do not know what else to do with their money and there is turmoil everywhere.”
Rogers is far from the only expert expressing concern about the greenback’s future.
A Bloomberg report Monday alleged that President Barack Obama complained about the strong dollar to a group of G-7 delegates. Obama has denied the report, but investors’ worries have persisted.
“There’s a sense that both monetary policy makers and lawmakers may be starting to become uncomfortable with the dollar’s strength, and that’s starting to cap some of the [dollar’s] upside here,” Omer Esiner, chief market analyst at Commonwealth Foreign Exchange, told MarketWatch.
To be sure, Newsmax Finance Insider Hans Parisis
is very suspicious of the recent volatile global currency moves. No doubt, markets are playing “curious” foreign exchange games, he cautions.
© 2024 Newsmax Finance. All rights reserved.