Jim Rogers' starkest warnings yet about the U.S. Dollar - A Must Listen!
Even those who don't share his views could stand to hear this interview, as it's critical at this juncture to be watching the dollar closely on a structural level. Our currency is presently on very shaky ground fundamentally, placing our economy at risk from moves by foreign nations -- namely China -- to flea from dollar assets to protect their reserves. Those who suggest that China won't continue liquidating dollar assets (they've already unloaded enormous quantities of U.S. agency debt) because they would be shooting themselves in the foot need to consider an alternate scenario ... where a China has no choice but to liquidate dollars once the U.S. currency slips into technical, sustained, and unfortunately unstoppable decline.
Pay particular attention to his final comment, where he points out that production has been ratcheted down faster than demand ... which echoes recent comments from Nucor, and supports my recent theory offered here. He's living in Singapore and is very keyed into the Asian markets ... and I think he also sees a big recovery for Asia sooner than many anticipate.
The USDX dipped below 80 this afternoon right after the markets closed ... punching through technical resistance and suggesting, in my view, a quick return to 71 to 72.5 area ... where we might expect some sideways movement at least if technicals indeed remain at play under the circumstances. Once the USDX breaks below that 70-mark ... watch out below. The reason the dollar rallied and gold declined when they did is because the Fed ./ Treasury knew that 70-mark was key technical support for the dollar ... perhaps a threshold past which foreign entities informed them they would no longer support the USD as reserve currency.
For anyone who didn't catch it the first time, here is my radio interview on NPR
Here is Jim Rogers' interview. Sorry the subject matter isn't more uplifting, but I strongly believe every Fool must follow this.