Thursday, 21 May 2009

Next Crisis Will Be in Currencies: Jim Rogers

been printing money, giving the appearance of massive government intervention to weaken their currencies, legendary investor Jim Rogers, chairman, Rogers Holdings, told CNBC Wednesday.

1 comment:

Guanyu said...

Next Crisis Will Be in Currencies: Jim Rogers

CNBC.com
20 May 2009

The next financial meltdown will be in the currency markets, as central banks around the world have been printing money, giving the appearance of massive government intervention to weaken their currencies, legendary investor Jim Rogers, chairman, Rogers Holdings, told CNBC Wednesday.

“At the moment I have virtually no hedges, I suspect it is going to be the next problem, big crisis will be in the currency markets, I’m trying to figure out what to do there,” Rogers told “Squawk Box Asia”.

Rogers has bought the yen because he expects the Japanese currency to withstand future problems, but he does not have short positions in any currency and is currently not buying the yen any more.

“I’m certainly not short in the dollar — not at the moment, although it may be the peak. We may have come to the peak,” he said. “I don’t plan to own the yen forever, because you know the Japanese, Japan has some huge problems down the road.”

For the moment currencies may look safer than anything else in the markets, as stocks may face a new bottom since they were artificially lifted by the amount of money created by central banks, but there are pitfalls ahead, he said.

“If I am right, you’re going to see a lot of currency problems in the next decade or two,” Rogers said.

“Governments around the world are doing their best to destroy currencies, many currencies in fact. And people need to understand that; if they don’t understand it now, they’re going to find out, they’re going to find out the hard way,” he added.