World Bulletin/News Desk
Declining oil prices are intended to punish Iran and Russia who need energy revenues, said Jim Rogers, renowned American investor in international financial markets.
Brent crude oil has decreased from $115.67 to $76.74 since June, losing a value of $40.
Rogers claims that the fall in oil prices is not a coincidence and told The Anadolu Agency, "The U.S. together with Saudi Arabia just want to put pressure on Russia and Venezuela. It’s an artificial play by the Saudis, with the support of the Americans to punish some; especially Russia and Iran. Maybe by following this strategy, they can get them to do what the U.S. says."
Despite the ruble losing value against the U.S. dollar, the growing Ukraine crisis, and the negative effects on the investment markets, Russia is still an attractive investment center, according to Rogers.
"I am buying in Russia right now. Some of these markets had been under pressure but I am buying stocks. I am optimistic about Russia." Rogers stated.
Currency war intensifying
Rogers said that there has been an ongoing and continuously speeding currency war in the international markets.
"Whether it is intentional or not, there is certainly a currency turmoil. The Japanese are driving down their own currency, and other currencies are in turmoil as well. In any case, it’s hurting other people, for example the Koreans and some of their competitors, like the Chinese," Rogers underlined.
According to Rogers, the Russian currency is collapsing, and many other currencies are coming down at a very dramatic rate.
The currency war is leading to an economic turmoil for some people, he emphasized, stating that "some are making a lot of money out of this, while others are losing a lot. China may have to get into the currency war, or maybe they will be forced to. More and more countries are becoming involved."
"U.S. dollar not a safe haven"
The U.S. dollar is standing strong against all the currencies at the moment and people choose the dollar over other currencies in the turmoil, he said, adding "so many people are looking for a safe haven and they think they can find it in the U.S. dollar. Traditionally it has been a safe haven, but it’s not anymore."
Rogers also stated that U.S. has the largest debt in its history, a situation which is getting worse and added, that as most people are not aware of the fragility of the currency, they still opt for the U.S. dollar and this is another reason that there is so much turmoil.
A new financial crisis around the corner
Rogers warned that in the past six years, efficient measures have not been taken in the worldwide economic markets since the global financial crisis and therefore, a new financial crisis in the coming days may arise.
"It may not be at the end of 2015, but certainly we are overdue in having another crisis. We are going to have one sooner or later because of currently there is so much debt. There has been a lot of money printed which has made many parts of the economy very artificial," he said.
Emerging economies have been regarded as the dynamo of the global economic growth and have taken a lot of cheap money which was printed by all the major four central banks; in the EU, Japan, UK and U.S., he said.
"What's happening now is because of this. This artificial sea of liquidity has helped a lot of people, now they are changing their money into dollars and they think it's more stable. Some emerging countries had benefited from this massive flood of artificial liquidity, and now they are suffering because this tide of money has been depleted," Rogers underlined.
“U.S. may begin a new monetary expansion"
He said that when the U.S. market suffers again with a 13-19 percent decrease, the Central Bank, or FED, will typically start printing a lot of money again.
Jim Rogers is a 72-year-old investor is known as one of the five people who influence global markets. He is the founder of Rogers International Commodity Index and is still the chairman of the board of Rogers Conglomerate and has investments in 28 different countries.Last Mod: 18 Kasım 2014, 14:43