Greenback sinks following news of Lehman Brothers’ bankruptcy
Paul Joseph Watson
Monday, September 15, 2008
With the greenback plummeting after the news of Lehman Brothers’ bankruptcy, top investor Jim Rogers predicts that the dollar will lose its status as the world reserve currency status and has resolved to buy more gold despite a recent fall in the price of the commodity.
Rogers, who correctly predicted China’s resurgence as an economic superpower back in the 80’s as well as crude oil surpassing $100, says the global economy is in a recession that is going to get much worse while inflation will continue to skyrocket.
“Some countries lie about it. But, inflation in all countries is going to get worse. The next decade is going to see lot more inflation, which is not good,” Rogers told the India Business Standard.
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“Frequently, since the prices of the commodities go up before the inflation numbers, one can stay ahead of inflation. But, if you get it wrong you might do worse. So, investing in those commodities, which are going to go up first or selecting the right commodities, is the key to stay ahead of the inflation and make a lot of money.”
Turning to the dollar, Rogers dismissed the greenback as a “flawed currency” that would continue to deteriorate for two to three decades, adding that he would seek to use the dollar’s recent rally as an opportunity to get out of the currency completely.
“I do not want to own any US dollars. Also, I would not urge you to buy US dollars. (The) dollar is going to loose its status as world reserve currency,” said Rogers.
“Some of the OPEC countries have already started and no longer take dollar, like Venezuela no longer accepts the dollar. Other countries are already looking and may be taking a package of basket of currencies instead of the dollar. I am not the only one who knows the dollar is in trouble. Anybody who watches the TV knows that the dollar is in trouble,” he added.
Rogers also said that the bull market in oil has at least another ten years to run and that oil prices will only go higher.
Speaking on the subject of commodities, Rogers recommended sugar, coffee and cotton and also said that he would be buying more precious metals.
“I am trying and want to buy some gold. However, whether this is the low in the gold, I have no idea, but if gold goes lower, I will add some more. Gold is something I do not plan to sell. Gold is something I will gift to my children,” concluded Rogers.
This article was posted: Monday, September 15, 2008 at 4:20 am