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Jim Rogers Blasts "The US Dollar Is A Terribly Flawed Currency"

Tyler Durden's picture




 

Reflecting on the growing anti-dollar alliance (especially among the BRICS as we noted here), Jim Rogers exclaims "The US dollar is an extremely flawed currency... we have serious problems... and the world needs something else." His perspective is that maybe (just maybe) a combined China, Russia, Brazil joint-currency can battle the dollar's dominance. Rogers goes on to discuss the rationale for the increased cooperation between these 5 nations with multi-billion populations but notes while Russia has lots to add, "I would throw India out" of BRICS.

 

 

The BRICS...

 

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Thu, 07/17/2014 - 14:11 | 4968964 Ham-bone
Ham-bone's picture
Here's an interesting tidbit - and think where the dollar is king... Let's look at 10yr yields of sovereign debt...  
  • BRICS
    • China - 4.22%
    • S. Africa - 7.97%
    • India - 8.74%
    • Russia - 9.01%
    • Brazil - 11.97%
  • Indonesia 8.07%, Turkey 8.63%, Vietnam 8.57%, Pakistan 13.1%, Egypt 15.45%
    • ???
      • Malaysia 3.9%, Romania 4.3%, Hungary 4.48%, Chile 4.57%, Columbia 6.55%, Mexico 5.63%
  • US & SWIFT Allies
    • Japan - 0.53%
    • Switzerland - 0.59%
    • Germany - 1.15%
    • US - 2.48%
    • UK - 2.59%
Finland 1.32%, Netherlands 1.37%, Austria 1.42%, Czech Rep 1.47%, Denmark 1.53%, Belgium 1.58%, France 1.58%, Taiwan 1.6%, Sweden 1.68%, Canada 2.15%, Ireland 2.26%, Singapore 2.27%, Norway 2.35%, Spain 2.63%, Israel 2.8%, Italy 2.79%, S. Korea 2.94%, Qatar 3.01%, Australia 3.38%, Poland 3.43%, Portugal 3.69%, Philippines 4.2%, New Zealand 4.38%, Greece 6.2%, Iceland 7.2%
Thu, 07/17/2014 - 14:26 | 4969045 JRobby
JRobby's picture

Hello. Very good way to look at it.

Must play ball with the bankster elite or else. Bankster bred derivatives were responsible for a number of the defaults/restructurings that bring down the wrath of bankster owned S&P/Moody's brothels.

Thu, 07/17/2014 - 15:05 | 4969163 Ham-bone
Ham-bone's picture

Ireland and Portugal are the poster children for playing ball and ensuring the bad debt was metatisized throughout the citizens of these nations...Greece and Iceland not playing ball and it shows...

Those suggesting an alternative to the US dollar fiat and US power (ie, BRICS) even talking about some sort of grounding (gold?)...BRICS exports require currency devaluation to maintain exports but obviously getting too many dollars in return...Syria, Iraq, Ukraine, etc. seem the battle ground over the US petro-dollar continued supremacy

Hard to really know what these interest rates represent?  Inflation adjusted returns?  Political favors?  Hot money control valves?  All I know is everytime someone suggests an alternative to the petro-dollar they are either dead, in exile, or suddenly find themselves under sanctions (financial war) or in a shooting war???

Also interesting China / Russia, etc. are now funnelling their inflation we are sending them back at us in the form of $'s repatriated in all cash purchases of RE back in the US, UK, etc.???

Thu, 07/17/2014 - 14:15 | 4969059 Winston Churchill
Winston Churchill's picture

Time BTFD on those Ruble bonds.

So your point is what hambone.Bankrupt countries have the lowest rates.

Apart from the very real chance of losing all your capital,this is agood thing ?

Thu, 07/17/2014 - 14:37 | 4969215 AnAnonymous
AnAnonymous's picture

The point is that it is much better to borrow from yourself. Suddenly, when in the situation, 'americans' are more lenient when estimating the expected return.

Thu, 07/17/2014 - 15:08 | 4969429 0b1knob
0b1knob's picture

"Time BTFD on those Ruble bonds."

Isn't that how LTCM went bust?

Thu, 07/17/2014 - 14:21 | 4969100 SAT 800
SAT 800's picture

Let's just simplify this a little; all this shit is worthless, okay.? It's just that simple; it's worthless and it's going to crash. Forget about interest rates for Christ's Sake.

Thu, 07/17/2014 - 14:07 | 4968991 Al Huxley
Al Huxley's picture

India's the Western Cabal's undercover plant inside the BRICS.  Desperate to join the Western elite, and apparently unaware of the unwritten rules that prevent them from ever really being in the club, Indian politicians and central bankers will sell their nation and their own souls to gain favor with the BIS, ECB and FED.  Indendendence in1945 - right...

Thu, 07/17/2014 - 14:12 | 4969032 lasvegaspersona
lasvegaspersona's picture

In the end I do not think the BIS/ECB will be on the same side as the Fed. 

Why do you think the Euro was created?

Thu, 07/17/2014 - 14:20 | 4969094 Al Huxley
Al Huxley's picture

FOFOA reference?  Maybe... but I think FED/ECB/BIS should be distinguished from USD/EUR.  The USD might be toast, but I doubt the FED members will be caught flat-footed by that.

Thu, 07/17/2014 - 14:13 | 4969035 NoDebt
NoDebt's picture

Al, India has been working night and day to increase their levels of paralyzing corruption so as to look as accomodating to western oligarchs as possible.  People like things that feel familiar, so they're trying to accomodate the west in that respect.

Thu, 07/17/2014 - 14:19 | 4969088 Al Huxley
Al Huxley's picture

They're doing a bang-up job of it, too.  I mean, if it was at all possible for them to join the club, based on performance they'd totally be in.  I'm especially impressed at how they spout total bullshit with such conviction that you almost find yourself believing it.  But no matter how they try, they'll never meet the club's full membership requirements - they're doomed to be lackeys forever.  But I guess if they're happy with that...

Thu, 07/17/2014 - 14:25 | 4969128 Winston Churchill
Winston Churchill's picture

Every day now, in the US, reminds me of my time in India.

Unpunished corruption,adulteration of foodstuffs,and a growing underclass of untouchables.

We even have their proffessional class of beggars now.

Someone has arrived, and its not the Indians .

Thu, 07/17/2014 - 14:18 | 4969085 SAT 800
SAT 800's picture

Well, I think he finally got something right in his worship of foreign currency fetish; which I have never engaged with. You certainly have to throw India out. You have to go there; it's un-believable. They have little techno-islands where they build clean together stuff; and the rest of the country is like Mexico on a bad drug trip.

Thu, 07/17/2014 - 15:18 | 4969487 NoDebt
NoDebt's picture

So.... they DO have a donkey show.

Thu, 07/17/2014 - 18:54 | 4970653 Semi-employed W...
Semi-employed White Guy's picture

Or a cow show maybe?

Thu, 07/17/2014 - 21:34 | 4971470 garypaul
garypaul's picture

NO, nothing that's actually fun(ny) there. And much worse than Mexico.

Thu, 07/17/2014 - 18:32 | 4970531 Monty Burns
Monty Burns's picture

Indian politicians and central bankers will sell their nation and their own souls to anyone, for anything, once the price was right.  A more dishonest people I have never met.

Thu, 07/17/2014 - 14:08 | 4969002 lasvegaspersona
lasvegaspersona's picture

Except the Indian population has more physical than all the others combined (OK maybe not China now but some estimates have Indian women in possession of 30,000 tons). Time for anothert wedding and baby. whoo hooo another 4 Oz neck piece....

Thu, 07/17/2014 - 14:11 | 4969025 Al Huxley
Al Huxley's picture

Yes, world's biggest or second biggest population has amassed a huge amount of the world's gold.  Too bad their government's bent on thwarting their natural inclination to wealth preservation.

Thu, 07/17/2014 - 14:24 | 4969127 SAT 800
SAT 800's picture

Yeah, right; and when they're all starving all they'll accomplish will be to reduce the price of gold as they sell it off for grains. The place is a disaster waiting to happen.

Thu, 07/17/2014 - 14:09 | 4969007 koaj
koaj's picture

Hopefully our next currency is linked to dirty diapers...i would be a rich ass man

Thu, 07/17/2014 - 14:11 | 4969015 NoDebt
NoDebt's picture

Wow, did Jim pick the wrong day to spout off about a subject everyone already understands or what?

 

Thu, 07/17/2014 - 14:11 | 4969016 joego1
joego1's picture

Hmmm, They look bigger than us.

Thu, 07/17/2014 - 14:27 | 4969031 Tasty Sandwich
Tasty Sandwich's picture

 

 

The dollar is our currency, but your problem.

  • John Connally, 61st United States Secretary of the Treasury
Thu, 07/17/2014 - 14:31 | 4969169 realWhiteNight123129
realWhiteNight123129's picture

Until the world stops using the currency. At that point it will neither be the problem of the rest of the world, not the currency of the USD (it will have vaporized by then...)

Thu, 07/17/2014 - 14:22 | 4969073 pakled
pakled's picture

Geez.. it's a fucking dog pile on the USD these days...

Thu, 07/17/2014 - 14:20 | 4969091 orangegeek
orangegeek's picture

looks like Jim old boy is long the USD - and just pulling an "icahn"

 

keep bashing the USD Jim you rotten fuck

 

sell at the bottom folks

Thu, 07/17/2014 - 14:21 | 4969107 shouldvekilledthem
shouldvekilledthem's picture

Is it a flaw or feature?

Thu, 07/17/2014 - 14:28 | 4969149 SAT 800
SAT 800's picture

Someitmes I feel like screaming at this guy; hey; Dude; they're all "terribly flawed"; Okay? How did you manage to not notice this. They're all fucked; totally and hopelessly comprimised by debts that'll never be paid. The whole world went off the Gold Standard; the Whole World went on a giant Credit Card Binge, and the Whole Worlds' "currency" is fucked; Okay? It's not that complicated.

Thu, 07/17/2014 - 16:41 | 4970023 Seer
Seer's picture

Exactly!

Jim and others jsut set up this trap and hope to chase folks their way in order to make their trade killings.  None of them can possibly answer you with a straight face if asked if they believe that their "vision" of the world isn't predicated on the Ponzi of perpetual-growth-on-a-finite-planet.

Thu, 07/17/2014 - 14:30 | 4969159 basho
basho's picture

just keep recycling the same old s*it. somebody buy this guy a moped and send him round the world again.

Thu, 07/17/2014 - 14:34 | 4969190 Joebloinvestor
Joebloinvestor's picture

The US will pull a rabbit out of the hat with some alternative currency that will not be available to the general public.

 

Thu, 07/17/2014 - 14:35 | 4969197 SmittyinLA
SmittyinLA's picture

the problem is individually all of those nations are worse spending (well nobody is as insane as we are) and more corrupt than the United States, assembling them together doesn't make them more responsible but less, they can all point fingers at the other guys.

Did European governments get more responsible in a trade union or less? Less, every player assumed more debt to "invest" in ever bigger money losing endeavors (like Muslim welfare immigration) and war in Ukraine.

 

Fri, 07/18/2014 - 07:43 | 4972550 garypaul
garypaul's picture

That be the truth. I'm surprised you got a downvote instead of multiple upvotes.

Thu, 07/17/2014 - 14:35 | 4969201 Sir Arthur Stre...
Sir Arthur Streeb-Greebling's picture

BRICs countries are as patriarchal, if not more so, than the US.

Bernard Lietaer, former central banker, highlights a correlation between societies that respect women and societies with dual or multiple currencies.

http://www.ignoranti.org/2014/07/02/bernard-lietaer-economist-and-author...

When the public lets the state decide how much trust there will be next quarter the answer is always more.

Thu, 07/17/2014 - 14:36 | 4969204 Sir Arthur Stre...
Sir Arthur Streeb-Greebling's picture

BRICs countries are as patriarchal, if not more so, than the US.

Bernard Lietaer, former central banker, highlights a correlation between societies that respect women and societies with dual or multiple currencies.

http://www.ignoranti.org/2014/07/02/bernard-lietaer-economist-and-author...

When the public lets the state decide how much trust there will be next quarter the answer is always more.

Thu, 07/17/2014 - 14:38 | 4969219 Bokkenrijder
Bokkenrijder's picture

Same soundbites as always...yawn...

I just missed the "farmers driving Lamborghinis" one...

Thu, 07/17/2014 - 14:39 | 4969225 AnAnonymous
AnAnonymous's picture

Roger's pants are getting tighter and tighter. This 'american' is heavily invested in the area and 'americans' are coming. They will take no prisoners.

Thu, 07/17/2014 - 14:58 | 4969338 CaptainSpaulding
CaptainSpaulding's picture

Thanks Jim. I'd better go out to my local pub and stimulate the economy with what's left of my " Flawed currency".

Thu, 07/17/2014 - 15:03 | 4969385 nidaar
nidaar's picture

"I would throw India out" of BRICS."

The third country managed to build an ICBM shield recently, whose population is collectively loaded up with tons (literally) of physical gold and has the potential of becoming one of the largest markets in the world (if not already)? That India?

Jim you are getting old...

Thu, 07/17/2014 - 21:38 | 4971491 garypaul
garypaul's picture

Once again, long on "potential" but short on facts.

Thu, 07/17/2014 - 15:42 | 4969422 falak pema
falak pema's picture

... 

This is as bad as HFt ! 

Speedy Gonzales !

BTW : there seems to be a bad connection to ZH...from where I am.

Thu, 07/17/2014 - 15:12 | 4969425 falak pema
falak pema's picture

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Thu, 07/17/2014 - 15:12 | 4969426 falak pema
falak pema's picture

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Thu, 07/17/2014 - 15:11 | 4969427 falak pema
falak pema's picture

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Thu, 07/17/2014 - 15:11 | 4969428 falak pema
falak pema's picture

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Thu, 07/17/2014 - 15:14 | 4969430 falak pema
falak pema's picture

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Thu, 07/17/2014 - 15:15 | 4969431 falak pema
falak pema's picture

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Thu, 07/17/2014 - 15:09 | 4969432 falak pema
falak pema's picture

stop stating the obvious, fifty years too late : exorbitant privilege was coined in 1965; it became "our money your problem" SCAM in 1971...

Wake upeee  time began from then on ! 

Thu, 07/17/2014 - 15:20 | 4969494 bondman1
bondman1's picture

Current composition of the specil drawing right (SDR) issued by the IMF:

U.S. dollar 43% Euro 37% Pound sterling 11% Japanese yen 9%

SDR basket gets rebalanced next Oct. (every 5 years) Think the IMF will be adding a significant renimbi % to the basket?

Thu, 07/17/2014 - 15:24 | 4969512 Freedumb
Freedumb's picture

If you throw India out, then the whole thing collapses in on itself as it becomes unpronounceable, unless you can find another suitable vowel country to replace it

Thu, 07/17/2014 - 21:39 | 4971496 garypaul
garypaul's picture

BRAC? BRIC-BRAC? what?

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