BUSINESS

US dollar is a flawed currency: Rogers

April 09, 2008 15:10 IST

In an exclusive interview with Keith Fitz-Gerald, the Investment Director of the Money Map Report, a seasoned market analyst, legendary investor Jim Rogers says the US dollar is a terribly flawed currency.

"I'm trying to get all of my money out of US dollars. I don't know why anybody would put money into the US dollar, and by extension into the US, as we stand here today. The US is probably the largest debtor nation the world has ever seen!" he said.

Rogers who shifted to Singapore last year said that the United States' foreign debts are increasing at the rate of $1 trillion every 15 months. "US foreign debt is over $13 trillion, and rising rapidly. It's the official policy of the central bank to debase the currency. They're trying to drive down the value of the dollar." he said.

Rogers pointed out that historically, nations that have gotten themselves into this kind of situation have only gotten out following a crisis or a semi-crisis, or some gigantic stroke of luck.

"The UK got out because they discovered the North Sea. Now you give me the largest oil field in the world, or one of the largest oil fields in the world, I'll show you a good time, too," he said.

"It's outrageous that Bernanke's sitting there. You know, I've read the Federal Reserve Act. Nowhere does it say [the central bank is] supposed to bail out investment banks! Nowhere does it say you should bail out Wall Street. Their mandate was to have a sound currency, and then it was later expanded to have employment - to help employment. But nowhere does it say: Bail out investment banks." he said.

"If you're in the field that deals with - and works out - bankruptcies, you've got a great future - on Wall Street, or in the legal profession. If you're in commodities, you have a great future. Some sectors of the financial community are going to do well," Rogers added.

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