Renowned investor Jim Rogers, co-founder of the Quantum Fund alongside billionaire George Soros, has sounded the alarm on the future of the U.S. dollar, predicting its inevitable downfall as more nations actively seek alternatives.
In an exclusive interview with Sputnik, published on Wednesday, Rogers shared his insights on the shifting global currency landscape.
Having collaborated closely with Soros at the Quantum Fund and Soros Fund Management, Rogers’ financial acumen commands considerable attention.
Highlighting the mounting trend of countries exploring alternatives to the U.S. dollar, Rogers stated, “Many friends of America are moving, trying to find something to compete with and ultimately replace the U.S. dollar. It will happen. It has always happened.”
The esteemed investor emphasized that the American dollar’s supremacy, which has persisted for over a century and a half, is poised to diminish.
He emphasized the cyclical nature of currency dominance, stating, “Nobody has always been on top, so it’s always happened. People have moved away from whatever currency it is.”
Rogers proceeded to elucidate the underlying factors driving nations away from the U.S. dollar.
Foremost among these is America’s unprecedented level of indebtedness, positioning it as the largest debtor nation in history.
Concerns are mounting, with many questioning the prudence of relying on a currency that could potentially face insurmountable challenges in the future.
Rogers’ cautionary statements coincide with the U.S. grappling with a burgeoning debt crisis, which some fear could culminate in a default on its debt obligations as early as June 1.
Such a default scenario has the potential to trigger a global financial catastrophe.
Another pivotal issue highlighted by Rogers is the weaponization of the U.S. dollar through the imposition of sanctions.
Recent rounds of severe sanctions imposed on Russia by the United States and its allies, in response to the invasion of Ukraine, serve as a prime example.
Rogers criticized Washington’s changing rules, asserting, “The world’s international currency is supposed to be completely neutral. Anybody can use it for anything you want. But now Washington is changing the rules. And if they get angry at you, they cut you off.”
He further noted that the U.S. sanctions on Russia have expedited the de-dollarization process, causing concerns even among America’s allies. This global discontent is fueling an accelerated transition away from the U.S. dollar.
While acknowledging the widespread desire to move away from the U.S. dollar, Rogers noted that thus far, no viable replacement or competitor has emerged. He observed, “So far, the world hasn’t found something to replace or even compete with the dollar.” Addressing the potential dominance of the Chinese yuan as an alternative, he pointed out the limitations imposed by China, stating, “The Chinese currency, sure you would think, but the Chinese don’t let you buy and sell the currency, it’s not completely converted.”
One prominent initiative seeking to challenge the U.S. dollar’s hegemony is the proposed currency by the BRICS nations. Comprising Brazil, Russia, India, China, and South Africa, these countries are collaborating to establish a common currency that would reduce their dependence on the U.S. dollar. The forthcoming summit in August will witness the leaders of the BRICS nations discuss this proposal, which holds the potential to undermine the U.S. dollar’s dominance.
In line with the de-dollarization movement, an increasing number of countries, including Indonesia and Venezuela, are following the lead of the BRICS nations. Moreover, ten Southeast Asian countries recently reached an agreement to promote the use of national currencies, aiming to reduce their reliance on the U.S. dollar and Western financial systems. This collective effort marks a notable shift in the global financial landscape.