The dollar is doomed, thanks to Washington, says commodities bull Jim Rogers.
U.S. government leaders have got it backwards, and their policies risk the dollar’s long-term role in the world economy, Rogers warns.
“They think that if you drive down the value of your money, it makes you more competitive, now that has never worked in history in the long term,'' Rogers told Bloomberg TV.
The dollar has rallied in recent months, but that trend will not hold up, he says.
The buck will eventually lose its status as the world’s reserve currency, then go downhill fast as fewer people see it as the default safe haven for wealth.
“It will be devalued and it will go down a lot. These guys in Washington, they want to debase the currency,'' Rogers says.
The dollar rally seen so far will last until next year, then collapse. Roger says he’s buying yen recently.
Both Templeton Asset Fund chairman Mark Mobius and Swiss Fund head Marc Faber see demand for U.S. dollars as untenably high.
The rush to buy Treasurys has increased demand for greenbacks. Once that cools, the need for dollars will decline, warns Mobius.
As Treasury rates drop to 1 percent, Mobius expects investors will sell their dollars, weakening the currency significantly.
Faber considers asset markets "terribly oversold" because investors are going overboard into the dollar and Treasurys.
"What you could see in the next three months is a very strong rebound in asset markets, in equities, followed by a selloff in bonds and eventually a selloff in the dollar," Faber told CNBC.
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