Collapse of Western Economy. (part 8.) Getting rid of The Dollar.

Bloomberg News
Oct. 25, 2007.

"I'm in the process of - I hope in the next few months - getting all of my assets out of U.S. dollars," said Rogers, 65, who correctly predicted the commodities rally in 1999. "I'm that pessimistic about what's happening in the U.S."

Rogers, delivering a presentation Tuesday at an investors' meeting organized by ABN Amro Markets in Amsterdam, said he expects the yuan to quadruple in the next decade and that he is holding on to commodities like platinum, gold, silver and palladium.

The dollar has dropped against all the 16 most actively traded currencies except the Mexican peso this year as slowing growth and the first interest-rate reduction since 2003 last month dimmed the allure of dollar-denominated assets.

Since the Fed lowered U.S. interest rates Sept. 18, the first cut in four years, the dollar has fallen 2.8 percent against the euro and touched a record low Tuesday. Gold rose to a 27-year high and platinum jumped to a record.

"It's the official policy of the central bank and the U.S. to debase the currency," said Rogers, a former partner of George Soros.

"The U.S. dollar is and has been the world's reserve currency, the world's medium of exchange," he said. "That's in the process of changing. The pound sterling, which used to be the world's reserve currency, lost 80 percent of its value, top to bottom, as it went through the whole period of losing its status as the world's reserve currency."

The Chinese currency, known as the renminbi, or yuan, is "the best currency to buy right now," Rogers said. "I don't see how one can really lose on the renminbi in the next decade or so. It's gotta go. It's gotta triple. It's gotta quadruple."

The yuan strengthened past 7.5 to the dollar today for the first time since the central bank ended a fixed exchange rate in July 2005. The currency has gained 10.5 percent since the dollar link was abandoned.

China, growing faster than any other major economy, is "going to be the most important country in the 21st century," he said. Gross domestic product expanded 11.9 percent in the second quarter, and analysts surveyed by Bloomberg estimate the economy grew by 11.5 percent in the three months to Sept. 30.

Rogers also is buying Swiss francs and Japanese yen, which he said have been "pounded down" because of the so-called carry trades.



Source:
http://www.iht.com/articles/2007/10/24/business/sxasia.php

Category:

News & Politics

Tags:

• Collapse
• of
• Western
• Economy.
• (part
• 8.)
• Getting
• rid
• The
• Dollar.

[Faustulus777]

Nobody is that bad by accident: The Federal Reserve is bad on purpose: it's involved in an economic coup.

[unibrook]

Just becuz people have held USD as a reserve currency in the past, doesn't mean they will continue to do so in the future. As Rogers said, GBP used to be a reserve currency too. US answer to everything is to print more money! Gee, if that works so well, how come the Weimar Republic didn't think of that? .... oh wait.

[badsign1980]

this guy is with soros, the international jews owe obedience to nothingh and no one destroys anything for money, these people are parasites they dont do anything but suck otbher peoples work

[Channypogosticks]

@KennethZuo There's a difference between the chinese Yuan and your yen that you are trying to talk about being so bad. maybe its symbol error but if its not then the yuan is not far away from being equal to the dollar only a 6:1 ratio. even the japanese's 101:1 ratio with america still makes a good economy. the main reason is that america is importing rather than producing. if they take away all jobs in mexico and put it in america its good enough to make them # 1 plus their consumerism is bad

[KennethZuo]

China's central bank, lol, I guess you haven't seen the export based economy in China, it rises with the rise of US housing bubble, it collapses with the collapse of US economy bubble, even the bailout bubble are so identical, buy Chinese ￥? This guy is nuts, the Chinese right now are so afraid to raise the interest, it is a protective mechanism, they see it as a solution.

[TheFinancist]

Amen for the last sentence!

[1stepaheadofthedevil]

From my understanding there is a law that says the bank has to keep 1/10th of the actual money in the bank. So when the government asks the FED for a loan say for $1M and put it in the bank, the bank only has to maintain $100K. So this means that the bank has $900K of invisible money for loans. Now if you get a loan for $200k, normally you would take that money out and then re-deposit that into your account. The bank now has to maintain $20K in physical money and has $180k invisible for loans.

[Taichigun]

USA and the world will prosper again,after the bonds and the USA$ will be backup by the agreement ,covenant between the Vatican who own most the gold and the Jews who have the papers.

[BigRedMcCool]

The big question is where did all these paper dollars come from? Where? How is it that in 1963 the total amount of U.S. paper currency in circulation and fiat bank credits was about 150 billion? Today in 2008 (45 years later), there is somewhere between 2 to 10 trillion paper dollars and fiat bank credits in circulation. Where did all this currency and fiat credit come from? Where? The FED printed it up! They created it out of thin air! Then these bums dumped it on the world economy.

[jacket23]

luvin the bow tie

[pt1200]

Jim Rogers is a media whore, he steals all his "ideas" from the asian authors.

[egn2020]

Human capital is job skills. The money you spent on going to school being flushed down the drain.