Star investor Jim Rogers doesn't believe in the dollar for the long term, but he doesn't believe in other currencies for the short term.
So he says he has been buying dollars reluctantly.
"I own more dollars than any other currency, as I see more [global] problems coming," he said, according to
Investment Week. "Currency turmoil has already started and will continue for the next three to four years."
The dollar has reached multi-year highs against a range of currencies in recent weeks, and the Swiss franc has soared since the Swiss National Bank decided to drop its ceiling for the currency last week.
"When people are scared instinctively they run to the dollar, as it is perceived to be a safe haven even though it is not," Rogers explained.
He hopes he's "smart enough" to exit his dollar positions when the currency's run is over, given the government's $18 trillion of debt.
"The US is the largest debtor nation in the history of the world. Never has a nation ever got into this much debt and its getting higher and higher every day," he noted.
"Washington is spending and borrowing even more and not doing anything about it. No nation would be able to get out of this without a crisis. . . . What will need to happen for the U.S. dollar to lose reserve status? More of what is already happening — debts going higher."
The greenback is a "terribly flawed currency," Rogers added.
The Swiss National Bank's decision on the franc merely intensified the global currency war that has percolated for more than a year, experts say.
"Clearly, the global currency war continues to rage no matter what central bankers tell us," Dean Popplewell, chief currency analyst at OANDA foreign exchange brokerage, writes in an article for
Forbes.
"The Swiss National Bank move is probably a sign of things to come throughout the eurozone, as other national central banks prepare for the European Central Bank’s potential shift in monetary policy in a matter of days."
Denmark's central bank cut interest rates Monday.
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