Thursday, October 21, 2010

Jim Rogers: Trade Wars Will Collapse Economy

Investment icon Jim Rogers says the trade wars looming on the economic horizon could spell disaster for the global economy.

"The word is on a very dangerous precipice, and if we do continue with trade wars, that's going to be the end of the world economy … we’ve seen many countries putting on capital controls already," Rogers, chairman of Rogers Holdings, told CNBC.

"If we don't solve this problem, it's finished, it’s all over.”

If governments print a lot of money, Rogers observes, the Dow Jones Industrial Average “could go to 50,000, and we could all be losing huge amounts of money because the money will be worthless.”

Rogers is skeptical that the U.S. economy is improving. “The central bank is making things worse,” he says. “The reason I don’t have a lot of shorts is that I’m afraid banks are going to print a lot of money and everything will go up.”

Rogers has begun shorting long U.S. Treasuries and most of his emerging markets holdings. (more)

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