Washington: Renowned investor, Jim Rogers giving a fearful indication said, that a recession far worst than the one seen in 2007 by the US and the World, awaits all in the coming future. It has already started and the share markets in US have begun to see its consequences. A financial distress never seen by the US, would have to be confronted. Besides, he added, that the US petrodollar is on the verge of collapse and China and Russia have already begun preparations to hedge the crisis.
Rogers said that US often undergoes a financial crisis every four to eight years. However, the last nine years US did not face any such crisis. Hence the coming adversity could be greater. While alerting attention to the crisis, he said that the consequences of its dangers are being seen. The past year and a half, a downward trend in the share market in US had been noted. The share prices of most companies had nosedived. Although big cities in US seem apparently to be doing fine, the situation outside the cities is totally different and the people seemed under financial stress.
While recollecting the series of past events, Rogers said that the recession of the year 2007, saw Iceland, a small country in Europe going bankrupt. Not much attention was paid by anyone to this event. Afterwards, Ireland declared itself bankrupt. However, it is only when the ‘Lehman Brothers‘ a US company collapsed that the World realized that something contradictory has been happening. The results of all this on the economy were felt by the year 2009. Jim Rogers cautioned that the coming financial crisis would be far more disastrous and no living person could have seen the like of it. A very serious situation indeed would have to be confrontated. Rogers analysed the situation saying that if the economic crisis did happen, then there could be an explosive rise in gold prices.
Likewise, while discussing with a Russian media house, Jim Rogers mentioned about petrodollar coming to its end. In the decade of seventies, the Gulf countries had decided to sell oil only in US dollars. After this, the US dollar became an international currency and came to be known as petrodollar. However, by saying that the petrodollar is as good as extinct, Rogers had created a sensation of sorts. Even though the dollar is still considered an international currency, quite a few countries have stopped trading in dollars. Yet, there are countries who still trade in US dollars to keep the goodwill of US. However, Russia and China have barred the US dollar from their trade. Very soon, Rogers said that Iran, Pakistan and Vietnam would reduce their trade in dollars. Rogers claimed that although the process is slow, there seems a determined effort to reduce the usage of US dollars in the international trade. Rogers added that in the earlier times, the British pound which was the international currency, had not been replaced by the US dollar unexpectedly. But the replacement process had started gradually.
Jim Rogers, who has predicted the coming financial crisis as well as the end of the petrodollar is a noted investor and an expert in the finance world. Earlier too he had cautioned about grave financial crisis. Time and again, Rogers had targeted the wrong policies adopted by US and other countries.