The dollar recently hit an almost six-week high against the euro, and that's just a prelude of what's in store for the common currency, says legendary investor Jim Rogers, chairman of Rogers Holdings.
"I hope the euro survives," he tells Newsmax TV in an exclusive interview. "We need something to compete with the dollar, which is a terribly flawed currency now. I don’t see how the euro can survive as we know it, though."
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The euro has dropped 12 percent since April 26, 2011 amid the eurozone's debt crisis.
The Europeans have made a lot of mistakes in handling the currency through that crisis, Rogers says. "And, of course, this whole concept that Brussels can control everything. Very few people in Brussels are even elected," says Rogers, author of the new book “Street Smarts: Adventures on the Road and in the Markets.”
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Central bureaucrats are controlling the European Union, and the populace is getting upset about it, Rogers says. "So the euro, as we know it, will not survive. I hope something survives to compete with the dollar."
Meanwhile a currency war already has begun, as evidenced by the astonishing 25 percent surge by the dollar against the yen so far this year.
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That kind of move "usually leads to some kind of problem somewhere," Rogers says. "Somebody's on the wrong side of that trade. It's already causing trade problems with the Koreans and the Chinese and the Germans."
So look for more currency turmoil ahead, Rogers says: "Be careful. Be very careful. As I said, the dollar's a terribly flawed currency. I own it. I don’t own it because I have any confidence in it. I own it because other people will flee to the dollar in times of turmoil."
More from the exclusive Newsmax TV interview:
• Jim Rogers: Fed's 'Artificial' Inflation of Economy Will 'End Badly'
• Jim Rogers: Bernanke to Leave Fed to Avoid 'Hangover' Aftermath
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