On Sunday, I mused that one of my deepest concerns about being bullish on the US Dollar is that I’m on the opposite side of the trade from Jim Rogers, who thinks the buck is doomed.
Q: How much of the runup is being driven by U.S. deficits and the weakening dollar?
Jim Rogers: A huge amount is about not just U.S. deficits, but all deficits. Deficits are going berserk nearly everywhere. Throughout history, printing money has led to weaker currencies and higher prices for real assets. And there are many, many pessimists about the dollar, including me. So many pessimists that I suspect there’s a rally coming. I have no idea why there should be, but things do usually rally when you have this many bears at the same time. I’ve actually accumulated a few more dollars. I mean, it’s not a significant position, but I do own more dollars than I did a month ago. And we’ll probably also have a gold correction because there’s so many bulls on gold.