Legendary investor Jim Rogers says he plans to sell off his dollar holdings as soon as the next peak occurs, as the current state of the US economy will inevitably put an end to the greenback’s global hegemony.
“I hope I am smart enough to sell it during the next major strengthening,” Rogers said, as quoted by Russian business daily RBK.
The investment guru admitted that people still see the US national currency as a safe haven during bad times. However, another appreciation might even result in a bubble, as the US economy is currently in rough shape, he suggests.
Annual inflation in the US reached 6.8% in November, the highest in nearly four decades, and is reportedly on the brink of hitting the 7.2% mark recorded at the end of June 1982.
According to Rogers, the next time a bubble occurs, if it inflates too much, it might spell the end of the dollar’s reign as the world’s top currency.
“No country in the world has ever been as heavily indebted as the US,” Rogers said. “I think this could lead to the end of dollar dominance.”
Apart from surging US inflation, the latest attempts to move world trade and finance away from the US dollar are also undermining the greenback’s special status, the strategist said. He mentioned Russia. China, Iran, India, and Brazil as examples of this trend.
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