The dominance of the US dollar as the world’s major currency seems to be coming to an end, according to Jim Rogers, a famous American investor and co-founder of the Quantum Fund with George Soros. He implied that the status of the US dollar is declining across the world.
Jim Rogers is well-known for his innovative investing strategies, which center on long-term movements and patterns in the global economy. His insights on commodities, foreign currencies, and emerging markets are highly valued. Rogers’s important publications, such as “Investment Biker” and “A Bull in China,” provide insightful explanations of his investing theories. He is an unwavering advocate for investing in Asia and is optimistic about the region’s long-term economic potential.
Rogers is a sought-after analyst and public speaker who often gives interviews, papers, and TV appearances in which he discusses the market and offers investing advice. Investors have come to respect his unconventional views and his ability to identify investment opportunities via macroeconomic research.
Rogers mentioned the Chinese yuan as a possible alternative to the US currency during an interview with Nomad Capitalist’s founder and CEO, Andrew Henderson. But he stressed that China’s tight capital rules constitute a major roadblock to the yuan’s ascent to prominence across the world. He owns a lot of dollars, but he knows that no currency has dominated the international economy for more than a century and a half.
He went on to say that the yuan is the only currency in his opinion capable of challenging the US dollar’s supremacy at the present time. If China wants the yuan to compete with other major currencies like the euro, it must ease limits on the yuan’s trading capabilities. He said that China has been gradually improving in this area over the last two decades, but that this is still not enough.
Rogers had doubts about the BRICS bloc, which consists of Brazil, Russia, India, China, and South Africa. He characterized the organization as more of a theoretical ideal than a practical alliance, pointing out that their only real action seems to be an annual gathering.
According to what Rogers said: “They’ve been extending their yearly gatherings, but I don’t see any other signs of growth. Nothing supports the idea.”
Jim Rogers predicted a bear market more severe than any he has ever encountered in a June interview with Real Vision, expressing gloom about the state of the world economy. Rogers compared the present economic climate to that which existed before the 2008 Financial Crisis, but warned that things seem far worse in the future.
According to Rogers, the massive increase in worldwide financial debt is the primary cause of the impending bear market. He stressed that the increase in debt since 2008 makes the next bear market unprecedented in its severity. Rogers predicted that the next bear market would be “the worst in my lifetime,” with “gigantic increases in debt” to blame.
Rogers drew parallels between the current state of the financial markets and the inflation crisis of the 1980s in his warning. He recalled the sky-high interest rates and treasury yields of that time, when they were required to curb inflation, and speculated that comparable conditions would soon arise again.
Also Read: FTX estate has a $122 million investment in Solana
