Rogers: Dollar To Lose World Reserve Status

[ms]

               Rogers: Dollar To Lose World Reserve Status



Greenback sinks following news of Lehman Brothers’ bankruptcy

Paul Joseph Watson
Prison Planet
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

[Heather]

I read on CNN today that the dollar is now of less value than the Euro and Yen.  Kinda scary!

Heather

[Beers]

That's odd, the Euro has been worth more than the dollar for some time now, that's not news. The Yen still has a long way to go before it catches up with the dollar, heck, it hasn't yet caught up with the penny.

Remember, this is an opinion piece (with a sensationalist title - not at all unusual from Alex Jones). Yes, we've got all manner of financial problems right now. Crap like this sure isn't helping, and probably exacerbates things.
What bloody purpose can a piece like this serve other than to scare normal people and frighten high finance away from the dollar? Thanks Paul...

I really hate when someone writes an opinion piece making dire predictions and people print them under headlines that pronounce said opinion as though it were established fact, graven in stone.

[Heather]

My apologies Beers, I stand corrected, sort of.  The value of the dollar is not less than that of the Yen, but the value is weakening greatly and fast.

Here are stats from the Wall Street Journal, not stone, but definitely reputable.
http://online.wsj.com/mdc/public/page/2_3020-worlddollar.html

Heather

[Graybeard]

I'm sure the yen is stronger than the US Dollar altho the value of one yen is likely to never be equal to the dollar. That is the reason for the general misunderstanding in that regard. The Yen for whatever reason is and always has been pegged at only a fraction of the value of a dollar but as a currency it is quite strong on the internation market.

The strength of any currency is really based on the current status of the economy of that nation and right now folks don't see the US economy as growing so much as shrinking due to poor political decesions, moving of manufacturing jobs over seas and weak backing for our banks.

[Beers]

My apologies Beers, I stand corrected, sort of.

No apologies necessary Heather, I just re-read my previous post and realized that you may have read that last sentence as though it was directed at you, it was not. The first line of my post was all I had to say pertaining to your post. I see now what you meant however, the dollar is indeed losing ground against the yen. GB's post clears up the oft confused difference between a currency's strength and it's exchange value. Sorry if I offended, I definitely should have worded/formatted that post a little better...

My little rant there was directed entirely at the original post and the source of the article, I really despise sensationalist tactics in journalism.