The dollar and U.S. Treasuries are both likely to slide as soaring government debt in the world's biggest economy undermines confidence in its assets, according to Jim Rogers, chairman of Rogers Holdings.
"The government is printing lots of money and borrowing even more; that's not the basis for a sound currency," he said in a telephone interview today from Singapore . "The idea that anybody would lend money to the U.S. government for 30 years at 3 or 4 or 5 or 6 percent interest is mind-boggling to me."
Rogers, the author of books including "Investment Biker" and "Adventure Capitalist", said he holds fewer dollars than a year ago and plans to "short U.S. government bonds someday." A short bet involves selling a security you don't own with a view to buying it back after the price has fallen.
He recently bought the Swiss franc and within the Asia- Pacific region his currency holdings include yen, Singapore dollars, the yuan as well as the Australian and New Zealand dollars.
Rogers said he expects commodities prices to climb, saying it's one of the few asset classes with improving fundamentals.
Stocks in Sri Lanka are the only equities the investor said he would consider buying at present, adding that he plans to hold on to his holdings in China for many years to come.
"Selling Chinese shares in 2009 would be like selling U.S. ones in 1909," Rogers said. "My children were born in 2003 and 2008 and I expect them to hold my shares someday."
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