Contact us
CALL US NOW 1-888-GOLD-160
(1-888-465-3160)

Jim Rogers: The Dollar Is on the Way Out

  by    0   0

Investment guru Jim Rogers recently told RT that the dollar is just a few short years away from losing its global dominance.

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.”

We’ve been reporting on the growing efforts by countries like Russia and China to limit their dependence on the US dollar and set up alternative systems outside of the global dollar system. We’ve even seen American allies looking to de-dollarize the world. Last month, German foreign minister Heiko Maas called for the creation of a new payments system independent of the United States. A number of central banks have been buying gold as a way to diversify their holdings away from the dollar.

Rogers told RT he still holds dollars, but not because it’s a sound currency. He said many people still see the greenback as a safe haven.

So, you would say why do you own it [dollar] 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.”

Rogers said the shift away from the dollar is part of a natural evolution. Currencies rise to prominence, along with powerful countries and then eventually fall away. He offered the British pound, the Spanish peseta, the French franc and the Dutch guilder as examples.

They 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.”

Meanwhile, during his last state of the union speech, European Commission President Jean-Claude Juncker said he plans to turn the euro into a global reserve currency that could rival the dollar as part of the EU’s drive to reduce its financial dependence on the US.

According to a report in the Financial Times of London, Juncker called the fact that the EU paid for more than 80% of its energy imports in dollars even though it only got 2% of that energy from the US an “aberration.”

We will have to change that. The euro must become the active instrument of a new sovereign Europe.”

According to the FT, the move reflects concerns in Europe about the US “weaponizing” the dollar as “an instrument of foreign policy to punish American rivals.” The report noted that the US has threatened to lock European companies out of the US financial system if they defy sanctions on Iran.

RT’s Max Keiser recently talked about the issue of the US weaponizing its currency with the head of research for GoldMoney.com, Alasdair Macleod. Macleod said he thinks China expects the East to move toward the yuan, but it needs to back their currency with more than the full faith and credit of the Chinese government. He said he thinks this is why China has been accumulating gold.

Rogers also mentioned the yuan, but said the Chinese currency is not quite ready for primetime.

The only one I see on the horizon is China’s renminbi, but not any time soon. The renminbi is not even convertible yet so it is impossible for a while.”

Regardless, it’s clear that there is a growing global movement to dethrone the dollar. As Rogers put it, “Everybody is now trying to get rid of the US dollar.”

Get Peter Schiff’s most important Gold headlines once per week – click here – for a free subscription to his exclusive weekly email updates.
Interested in learning how to buy gold and buy silver?
Call 1-888-GOLD-160 and speak with a Precious Metals Specialist today!


Related Posts

The World’s Top 10 Gold Producers in 2020

Who produces the world’s gold? Gold production fell again in 2020. According to the World Gold Council, gold production came in at 3,478 tons last year. That compares with mine output of 3,597 tons in 2019.

READ MORE →

Fed Chair Jerome Powell Sticks to Dovish Script During Congressional Testimony

Federal Reserve Chairman Jerome Powell testified before Congress on Tuesday and continued to peddle the “transitory” inflation narrative. Keeping with the dovish tone set after last week’s FOMC meeting, Powell reiterated that the central bank is not going to rush to raise interest rates, and he said the Fed would not hike rates merely in […]

READ MORE →

More Government Debt Means Less Economic Growth

The US government continues to borrow money at a frenetic pace in order to cover its massive spending spree. It runs huge deficits month after month and there is more spending coming down the pike. The national debt is over $28 trillion and it is about to begin surging upward again. But with the exception […]

READ MORE →

Another Inflation Warning: Import-Export Prices Rise Faster Than Expected

In another sign of rapidly accelerating price inflation, import-export prices rose much faster than expected in May. Import prices were up 1.1% month-on-month in May, and the Labor Department revised April’s increase from 0.7% to 0.8%. Projections for May were for a 0.7% increase. The actual number was higher than the high end of estimates.

READ MORE →

Despite Tax Day the Federal Government Runs Another Massive Deficit in May

Typically, the US government runs a budget surplus in the month that tax returns come due. Not this year. Despite a surge in receipts, the federal government ran a $131.95 billion deficit in May, continuing the trend of overspending and ballooning budget shortfalls. The federal budget deficit for fiscal 2021 now stands at $2.06 trillion […]

READ MORE →

Comments are closed.

Call Now