According to investment guru Jim Rogers, the United States has some major economic turmoil up ahead, including the fate of the dollar. The nation’s ballooning debt will only help worsen the dollar’s future and Rogers says it’s only going to get “worse and worse.”
Rogers admits that he still owns a lot of US dollars but not because it’s a sound currency. While speaking with RT on the sidelines of the Eastern Economic Forum (EEF) in Vladivostok, he said the dollar is going to crash and burn. “So, you would say why do you own it [US currency – Ed.] then? I own it because more turmoil is coming, people look for a safe haven in turmoil so they will go to the dollar. It’s not safe but they think it is,” said Rogers.
But many nations are divesting from the United States because of the continuing debt problem, which will eventually blow up in the faces of every American. As governments attempt to cope with their own debt problem by raising taxes, everyday people are being forced to supplement their own income with loans, making this cycle one that is exceptionally precipitous.
Global debt is staggering to the point most of it will never be repaid and as governments continue their spending sprees and the debts keep mounting, the future of the economy looks bleak. There is more than enough economic data out there to show there could be an economic collapse and stock market crash in 2018. Bill Gross stated in 2017 that “our highly levered financial system is like a truckload of nitroglycerin on a bumpy road”. One wrong move and the whole thing could blow sky high, wrote the Epic Economist. Once this bubble pops, it will fling the globe into a financial crisis of epic proportions never before seen. –SHTFPlan
And the dollar will be the most devastated when the debt bubble finally pops. The investor explained that the US currency is going to continue to climb higher, but that’s all manufactured, as many countries like China, Iran, Russ, a and others are now trying to get rid of it while growing their gold reserves. “In the next few years the American dollar is going to lose its position as the world’s reserve currency and the world’s medium of exchange,” Rogers predicted, adding that the world has always moved away from dominant currencies in the past as situations changed.
End of dollar monopoly? https://t.co/bbTZnekl9O
— RT (@RT_com) September 10, 2018
But Rogers also says not to worry because “it’s not a disaster,” it is simply history responding to and rebelling against authoritarian power, as is human nature. “They [other currencies] all had that position at one time or another but then went to excess and are not that sound anymore, they lost their position… People don’t like Washington’s power, so they are moving away and finding ways to get away from the dollar. It has happened throughout history, it happened to the pound sterling, you know the rest of that story,” Rogers said.
“Everybody is now trying to get rid of the US dollar,” Rogers said. And he isn’t wrong. As the US continues to pile on sanctions, nations protect themselves by ditching the US’s greenback. This is the beginning of the end of the US dollar’s global dominance, and it will, at some point, be a hard-learned lesson for big government lovers everywhere.
Roger predicts the Chinese yuan will take the dollar’s place, but not “anytime soon,” leaving room for that to mean any time in the next year, to 100 years.