Forex Breaking News – Jim Rogers says UK is FINISHED
Jim Rogers, World Famous Investor and former partner of George Soros, who single-handedly kept Great Britain from joining the European Union and at the same time became billionaires, has said that the “U.K. is Finished“. He made this statement as the Pound hit a record low versus the yen and the weakest level since 2002 against the US Dollar. When a whale makes a statement like that, it’s truly Forex Breaking News.
His reasoning is that the government will have to rescue a great number more banks that previously thought and the economy keeps slipping farther than it has since the end of World War II. He says to sell the currency immediately. “I would urge you to sell any sterling you might have,” said Rogers. “It’s finished. I hate to say it, but I would not put any money in the U.K.” Jim Rogers correctly predicted the start of the commodities rally in 1999. He also made a killing on the Crash of 1987.
Commonwealth Bank of Australia said there was a high risk of a cut to the country’s credit rating outlook and lowered its pound forecast. Prime Minister Gordon Brown authorized a 100 billion pound ($142 billion) bailout for banks.
The pound slid to 127.44 yen, the weakest since at least 1971, as of 2:23 p.m. in Tokyo from 130.71 yen yesterday in London, according to data compiled by Bloomberg. It declined 2 percent to $1.4133, the lowest since March 2002, and last traded at $1.4185. The currency slid 1.1 percent to 91.58 pence per euro.
Jim Rogers said the currency will fall below its record low of $1.0520 reached in February 1985. He believes that the U.K. debt is now greater than previously forecast due to the additional bailouts announced over the weekend and today.
Jim Rogers also said investors should be “worried” about the U.S. dollar, and recommended selling government bonds and buying raw materials, China stocks and the yen.
“If I were you, I would be worried about the U.S. dollar,” said Rogers, 66, in a speech at the Asia Financial Forum in Hong Kong today. “The Americans are printing U.S. dollars. The Americans are going to do whatever they can to revive their economy, even if it means destroying the U.S. dollar.”
Now is the time to make a killing shorting the UK Pound. With everyday news coming in on just how really bad the banks are in the United States and in Europe, it seems that the US Dollar and the U.K. Pound are going to be taking the brunt of the blow.
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Turbo Tagger
January 20th, 2009 at 5:13 pm
‘who single-handedly kept Great Britain from joining the European Union. Er…the last time I looked the UK was still a member of the EU, I think you mean the ERM (European Exchange Rate mechanism) – which as I’m sure you know is not the same thing as the EURO.
January 22nd, 2009 at 1:21 pm
Hey andym,
You got me on that one. I was writing it so fast I missed it. I definitely meant the European Exchange Rate mehcanism or EURO. Good catch.