Thursday, May 24, 2018

Thanks to Washington's unending need for debt, the dollar will soon lose its place as the reserve currency according to billionaire Jim Rogers

Whenever people speak out against the ever growing debt monster the U.S. is accumulating, pundits try to evade the issue by quickly pointing to China and saying how their debt is in much worse straits.  But the big difference of course is that China's debt is nearly all internal while the U.S.'s currency is the global reserve used by everyone.  And all one has to do is look at what is occurring right now in the emerging markets because of the dollar strengthening thanks to higher interest rates.

One of the primary benefits the U.S. has as the sole authority over the world's reserve currency is that of being able to export inflation when they print dollars in excess amounts.  So while the national debt may currently stand at around $21 trillion, the effects of that debt have been negligible since alot of currency is held in foreign hands.

But as billionaire investor Jim Rogers pointed out on May 24 during a speech at the St. Petersburg International Economic Forum (SPIEF), at a certain point this debt will not only come back to bite the U.S. economy, it will also be the catalyst for them losing control as the sole keeper of the world's reserve currency.

The US dollar is becoming less appealing for investors as American debt continues to soar and the greenback is printed to cover it, investor Jim Rogers said at the St. Petersburg International Economic Forum (SPIEF). 
The American currency will lose the status of main reserve currency much sooner than 2030, Rogers said at the Valdai Club’s discussion session, held as part of SPIEF. 
“Dollar is going to be higher than now because the turmoil is coming. Then, it is going to be overpriced and people will look around and say, ‘America’s got the largest debt in the history of the world. It’s printing money as fast as it can,’” the investor said. 
People will look at what Brazil, Russia, China, India, Iran and other developing countries are doing, Rogers said. “They are forming a competing currency right now,” he added. So, the dollar alternative will come from the countries that “have been bossed by the US, and they don’t like it, but have enough power to do something about it.” – Russia Today

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