Tags: jim rogers | dollar | global | status | debt

Jim Rogers: Dollar Losing Global Status as US Debt Soars

Jim Rogers: Dollar Losing Global Status as US Debt Soars
(Eduardo Huelin/Dreamstime)

By    |   Friday, 25 May 2018 02:40 PM

International investor Jim Rogers warns that the U.S. dollar is quickly losing its appeal to global investors as American debt skyrockets to stratospheric levels.

The American currency will lose the status of main reserve currency much sooner than 2030, Rogers said at the St. Petersburg International Economic Forum (SPIEF), according to RT, a Russian international television network funded by the Russian government.

“Dollar is going to be higher than now because the turmoil is coming,” Rogers said at the Valdai Club’s discussion session, held as part of SPIEF.

“Then, it is going to be overpriced and people will look around and say, ‘America’s got the largest debt in the history of the world. It’s printing money as fast as it can,’” Rogers said.

The U.S national debt has surpassed $21 trillion, up 2.8 percent since the start of the year.

Speaking separately to RT, Rogers warned that sanctions and trade wars are the biggest threat to the world’s economic stability. “The world has learned throughout history that closing off is not good, opening up is good,” Rogers said.

Rogers isn't alone in his warning about the debt.

In five years, the U.S. government is forecast to have a bleaker debt profile than Italy, the perennial poor man of the Group of Seven industrial nations, Bloomberg has reported.

The U.S. debt-to-GDP ratio is projected widen to 116.9 percent by 2023 while Italy’s is seen narrowing to 116.6 percent, according to the latest data from the International Monetary Fund. The U.S. will also place ahead of both Mozambique and Burundi in terms of the weight of its fiscal burden.

The numbers put renewed focus on the U.S. deteriorating budget after the enactment in December of $1.5 trillion in tax cuts, and the passage more recently of $300 billion in new spending. President Donald Trump’s administration argues that the tax overhaul combined with deregulation will help the economy accelerate, which in turn will generate enough extra revenue to avoid any fiscal fallout.

(Newsmax wire services contributed to this report).

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International investor Jim Rogers warns that the U.S. dollar is quickly losing its appeal to global investors as American debt skyrockets to stratospheric levels.
jim rogers, dollar, global, status, debt
336
2018-40-25
Friday, 25 May 2018 02:40 PM
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