Jim Rogers warns Trump’s “America First” commerce insurance policies may ignite the “biggest recession ever,” fueled by spiraling U.S. debt, inflation, and commerce restrictions.
Jim Rogers Warns ‘America First’ Approach Will Trigger Worldwide Economic Turmoil
Renowned investor Jim Rogers, who co-founded the Quantum Fund with George Soros, issued a stark critique of the financial fallout tied to U.S. commerce insurance policies below President-elect Donald Trump’s “America First” technique. Speaking with The Financial Chronicle final week, Rogers argued that commerce restrictions aimed toward nations comparable to China and India hurt not solely international financial stability but additionally the United States itself. He cautioned:
Mr. Trump’s ‘America First’ coverage will harm not simply China, however the entire world. Trade rules will not be good for anyone. It is just not good for the world and for his personal nation.
Highlighting home monetary points, Rogers pointed to inflation and mounting nationwide debt as severe threats to the U.S. financial system. He careworn: “The U.S. already has an economic problem, which includes inflation. Though central banks are cutting rates, the issue of inflation has not been resolved yet. It will come back with the trade war more aggressively.”
Foreseeing widespread repercussions, Rogers added: “The U.S. has a huge debt. When Mr. Trump will try to solve economic problems, he will make mistakes, and that is bad for the world. It will affect the entire world, and we will see the biggest recession ever.”
Proposing alternate options, Rogers advocated for lowering spending and debt over implementing commerce restrictions. He remarked: “America should work on cutting its spending and debt. It should not restrict trade with China, India, or any other country. Restrictions on trade will make the situation worse.” Turning to funding approaches throughout financial downturns, Rogers careworn the enduring worth of commodities like gold. He suggested:
When turmoil comes, often buyers search for a protected haven … But the greenback is just not a sound foreign money.
“In periods of recession, commodities like gold do well. People invest in commodities like gold to protect themselves,” he concluded.
The famend investor has persistently warned about main financial downturns. In February 2018, he predicted the following bear market can be “the worst in our lifetime,” a priority he reiterated in June 2023, suggesting it may exceed the severity of the 2008 monetary disaster. Rogers has ceaselessly pointed to rising international debt and potential financial bubbles as vital dangers. He has additionally expressed ongoing considerations in regards to the U.S. greenback, warning that its function because the world’s reserve foreign money is diminishing because of substantial U.S. debt and the usage of sanctions that weaponize the foreign money.
